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Rwanda Should work hard to solve the Agriculture Market Volatility

By Malliavin Nzamurambaho

In 2024, Rwanda’s agriculture market is experiencing notable dynamics influenced by various factors, both positive and challenging such as increased Production.

According to Rwanda Inspirer, “Rwanda’s 2024-A crop season has seen a significant surge in production, particularly in maize because of favorable weather conditions, which contributed to an estimated production volume of 650,000 to 800,000 tons of maize, far exceeding the usual 350,000 to 400,000 tons”. This remarkable increase is partly due to the government’s efforts to expand cultivated areas and optimize agricultural practices​.

The Government of Rwanda established the Strategic Investments and Reforms where the Government has been proactive in boosting the agricultural sector through strategic reforms and increased budget allocation to Agriculture Sector.

Rwanda Inspirer shows some initiatives such as the restructuring of agricultural practices, particularly in the Eastern Province, and the utilization of previously uncultivated lands have been pivotal. For instance, the conversion of 700 hectares in Bugesera District for maize and rice cultivation is a testament to these efforts​.

 Despite the successes, Rwanda’s agriculture market remains vulnerable to climate-related challenges and external shocks. The FAO emphasizes the importance of building resilience through sustainable and diversified production systems. This includes enhancing food security, nutrition, and the overall climate resilience of agricultural practices​.

The Market Volatilityis observed when the production is increased and subsequent surplus could lead to market volatility, particularly in pricing. The Rwanda government is working on establishing fair pricing mechanisms to balance the interests of both producers and consumers. This is crucial to avoid market disruptions and ensure a stable agricultural economy​.

Today, we face some challenges in Agriculture Sector such as limited land availability due to urbanization and the need for more robust irrigation and wetland management programs is persisting. The government, with support from international organizations like the FAO, PAM and local Stakeholders should address these through comprehensive programs aimed at improving agricultural productivity and sustainability​.

While Rwanda’s agricultural sector in 2024 shows promising growth and resilience, the Government of Rwanda should put more efforts to manage market volatility and address environmental and structural challenges remain essential for sustained success.

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