MAYUGE - The Government has distributed 50,000 oil palm seedlings to farmers in Busoga region's Mayuge Hub, under the National Oil Palm Project (NOPP), as part of its broader effort to boost agricultural productivity and improve rural livelihoods.
The Mayuge Hub covers the districts of Namayingo, Bugiri and Mayuge, where the Government has rolled out oil palm farming, extending cultivation beyond the traditional hubs of Kalangala and Buvuma.
The Government in partnership with the International Fund for Agricultural Development (IFAD), has mobilised $210m (about shillings 716.9 billion) to finance the project. The funds are channelled through Equity Bank.
The seedlings were officially handed over by the agriculture state minister, Fred Bwino Kyakulaga, who also flagged off the oil palm planting exercise for this season.
While officiating at the launch at Ikulwe NARO satellite station in Mayuge, Kyakulaga said the project was designed to empower smallholder farmers, increase domestic vegetable oil production and improve health of the population through increased vegetable oil consumption.
He added that the initiative will also address rural poverty, a long-standing challenge in Busoga, and promote agro-industrialisation.
“This initiative is a game-changer. At harvest, a farmer with an acre can earn about Shillings 500,000 to 1,000, 000 every month, while those with about five or more acres can directly get at least 2.5 million to five million monthly for 30 years. The Government has provided a solution to Busoga’s poverty and unemployment challenges through the National Oil Palm project,” Kyakulaga said.
According to the 2019/2020 report released by the Uganda Bureau of Statistics, Busoga was ranked the poorest sub-region.
He reassured farmers not to worry about markets, saying Uganda alone, even without exports, has a ready demand for oil palm, soap, cosmetics and other products that use palm oil as a raw material.
Kyakulaga said the initiative is expected to cut down Uganda’s expenditure on imported palm oil, which currently stands at $300 million (about shillings 1.1 trillion).
“This project is going to transform the lives of our people. Oil palm is a model crop that will not only increase household incomes but also help Uganda save money we spend annually importing palm oil,” Kyakulaga said.
He said the project is expected to expand to the other five districts of Iganga, Bugweri, Luuka, Jinja and Jinja in the next phase.
Shillings 1.2 billion earmarked
Through a partnership with Equity Bank, the Government has disbursed shillings 1.2 billion to farmers to kickstart production. The funds, managed under a credit facility, are used to provide farmers with seedlings, fertilisers, pesticides and training in modern agronomic practices.
“Equity Bank is also employing modern banking systems to track every transaction, verify beneficiaries and ensure funds reach the genuine oil palm farmers,” Equity Bank director of public sector and social investment Catherine Psomgen said.
The funds are disbursed to farmers as a loan at an interest rate of 10%, payable by farmers in a ten-year repayment period.
Kyakulaga explained that residents who may not participate in oil palm cultivation will be supported with alternative livelihood projects such as piggery, poultry and other income-generating ventures.
He further noted that the project will include the rehabilitation and construction of 360 kilometres of road network to facilitate easier transportation of produce and improve access within farms.
Minister of State for Agriculture Hon. Fred Bwino Kyakulaga flags off vehicles carrying oil palm seedlings to farmers in the Mayuge hub. (Credit: Betty Angatai)