Rwanda allocates over US$39.6M for fertiliser, seed subsidies

RWANDA – The Government of Rwanda has designated Rwf54.2 billion (approximately US$39.6 million) for subsidies on mineral fertilisers and seeds for the fiscal year 2024/2025, as reported by the Rwanda Agriculture and Animal Resources (RAB).

This allocation, slightly reduced from Rwf54.6 billion (approximately US$39.6 million) in the previous fiscal year, aims to enhance agricultural productivity by making essential inputs more accessible to farmers.

The budget breakdown includes Rwf10.6 billion(approximately US$7.7 million)  earmarked for seeds, specifically maize, wheat, and soybean, while Rwf43.6 billion(approximately US$31.9 million)   is allocated for fertilisers.

 Approximately 65 percent of this budget will be used during the agriculture season 2025 A, which spans from September 2024 to February 2025.

This financial support is crucial for farmers. Thanks to a 34 percent government subsidy, they can purchase urea fertiliser at Rwf660 (US$0.48) per kilo, a significant reduction from the market price of Rwf1,003 (US$0.74).

Farmers are particularly appreciative of these subsidies. Charles Uwamungu, a potato farmer from Musanze District, emphasized the importance of government support in reducing production costs.

“It helps lower the cost of production for the farmer and enables them to increase yield,” he stated.

 Uwamungu noted that combining mineral fertilisers with organic manure can yield between 15 and 20 tonnes per hectare, compared to just seven to eight tonnes when using manure alone.

Similarly, Jonathan Niyizanderera, a rice farmer from Rusizi District, highlighted how these subsidies alleviate farmers’ financial burdens.

“Without the subsidy, I would be forced to grow rice on a smaller plot or rely on loans, which are expensive and cut into my profits,” he explained.

His comments reflect a broader sentiment among farmers who view these subsidies as essential for maintaining agricultural viability and profitability.

Regarding projected distribution, RAB anticipates delivering over 6.8 million kilos of seeds to farmers, including more than 5.7 million kilos of maize, 912,000 kilos of wheat, and over 214,600 kilos of soybean.

Additionally, over 78.5 million kilos of fertilisers are expected to be utilised, consisting of 30 million kilos of DAP, more than 20.5 million kilos of urea, and over 24.2 million kilos of NPK 17-17-17.

Florence Uwamahoro, Deputy Director General for Agriculture Development at RAB, stated that the expected fertiliser use aligns with the approved budget but emphasised the need for flexibility.

“We want to increase yields and fertiliser and seed application,” she noted, indicating that the institution does not impose strict limits on agricultural input purchases based on the budget size.

 “When the planned budget is exceeded, we consolidate data at the end of the season and advocate for additional funds,” she added.

Rwanda’s average mineral fertiliser use is 72 kilos per hectare, with a target of increasing this to 94.6 kilos per hectare under the second National Strategy for Transformation (NST2).

 RAB also reports that only about 40 percent of farmers use quality seeds, highlighting the need for ongoing efforts to improve agricultural practices.

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