Value Chain Analysis of the Rice Sub-sector in Uganda

inclusivemarketKey Findings

Global trade in rice is extremely “thin” with only about 5% of the rice produced globally being traded across country borders. This is so because, most producing countries are also main consumers and thus impose stringent controls on rice exports. This together with the very high (75%) external common tariff imposed on rice imported into the EAC provides an opportunity for expanding rice production in Uganda.

The East African Common Market (EACM) protocol presents unique opportunities for Delivering Inclusive Markets in Agriculture and Trade for small and medium scale producers and enterprises (SMEs) and other actors in the rice sub-sector in Uganda. However, the DIMAT project will only succeed in delivering its objective to “enhance market access and value addition” if it focuses on enhancing tradability of rice within the framework of the EACM. This is because increased regional agricultural trade in rice will act as a pull factor for Uganda to realize its untapped production potential. This will ensure availability of rice at affordable prices for low-income consumers, while increasing profitability and income security for rice producers and other SMEs along the rice value chain.

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