Africa-Press – Uganda. Coffee nursery bed owners in Greater Masaka who supplied seedlings to farmers under the government led Operation Wealth Creation (OWC) project have given the government a one-month ultimatum to clear outstanding arrears.
According to Jamil Miwanda, the chairperson of Masaka Nursery Bed Operators, the government has turned a deaf ear to their concerns yet they have debts to clear.
“We have done everything humanly possible to secure payments, but in vain, and some of us are on the verge of giving up. Our businesses are collapsing due to a lack of operational funds,” Miwanda explained in an interview on Friday.
Miwanda told Monitor that many affected members demand government money ranging from Shs1m to 50m but totaling approximately Shs44 billion in coffee seedling arrears.
He highlighted that some of their members are currently stuck with seedlings due to accumulated arrears. Consequently, they “are considering cancelling their contracts with the government to start selling their seedlings to small holder farmers who can pay promptly.”
When contacted the Ministry of Agriculture allayed the farmers’ fears.
“We are working closely with the Ministry of Finance to clear the outstanding arrears,” said Ronald Gyagenda Ssegawa, the Ministry of Agriculture undersecretary.
However, he did not give a timeframe for the debt payment.
Instead, Ssegawa advised those running coffee nursery beds in the region without operational licenses to quit the business since they are responsible for the continued circulation of poor quality seedlings.
“Quality is critical because we are primarily targeting the international market and it must be maintained throughout the entire chain. We will not tolerate illegal operators,” he stressed.
Dr Gerald Kyali, the technology and development manager at UCDA, said the authority will provide technical assistance and increase its mass sensitization as a quality control tool.
Background
Following several complaints from farmers around the country, Parliament last year approved funds for the payment of accumulated arrears in a phased manner but many operators say they haven’t received the funds.
Agriculture is repeatedly described as the backbone of Uganda’s economy, employing at least 85 per cent of the population, but investment in the sector is still low.
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