New Policy Brief on Rice Polices in Uganda: Supporting producers but penalizing consumers

02 Apr 2013
Rice farmers and traders in Uganda receive higher prices thanks to existing policies. However, rice consumers also pay higher prices since they do not receive subsidies designed to offset high producer prices.

These are the main results emerging from a recent study on the impact of agricultural policies and public spending in Uganda. Furthermore, MAFAP analysis suggests that increasing rice production is the key to making rice more affordable for consumers while protecting producers.

> Read the policy brief
> Read the MAFAP technical note on incentives and disincentives for rice in Uganda (login required)

The study shows that higher farmers’ prices have led to increased domestic production. Indeed, both the volume of rice production and the amount of land devoted to growing rice have almost doubled since 2000. However, most of the increases in rice production have come from extensive rather than intensive farming activities.

Conclusion

MAFAP suggests that the best option for expanding rice production and protecting producers is to make rice farming more profitable. This is best done by improving production technology rather than by keeping prices high. Indeed, high prices may only encourage extensive production at the expense of consumers.

> Learn more about the impact of policies on other key commodities in Uganda