By George Bukenya
Low palm oil production in Uganda makes the government lose over US$350M in the importation of vegetable oil to satisfy the local market annually. This trend can be reversed when production in the sub-sector is enhanced.
The Minister of State in charge of crop production, Fred Bwino Kyakulaga, revealed that demand in the country requires a constant supply of 460,000 metric tonnes of vegetable oil annually, but producers can only manage 20% meaning imports contribute 80%.
The World Health Organisation (WHO) policy recommends that each human being consume 20-25 kg /year of edible oils in order to ensure a balanced diet, but this is far from achievable in Uganda due to limited production.
Speaking to reporters at Uganda Media Centre in Kampala, the minister said that the government’s priority objective is to ensure increased domestic production and satisfy the local demand, which will help achieve self-sustaining production of vegetable oil.
“ We are aiming at self-sustaining in the production of vegetable oil, and we can achieve this through increased investment in the sub-sector, which leads to increased productivity,’’ Hon Kyakulaga asserted.
He revealed that the government, through the Ministry of Finance, has released UGX 24 billion this FY to finance the compensation of people in Buvuma district and Sango Bay whose land was acquired by the government compulsorily in an effort to increase palm oil production.
The compensation exercise will have already commenced with 301 affected people in Buvuma, whose land has already been valued by the government chief valuer’s office, and of the UGX 24 billion released so far, 14 billion will go to Buvuma, while 10 billion is for people in Sango Bay, whose valuation isn’t yet complete.
Kyakulaga said the project is ongoing and started in Kalangala and is already benefiting citizens, where 4,500 workforces is employed directly in plantations, factories, transportation and indirectly in the trading of goods.
According to the minister, the projects in Buvuma and Sango Bay are also expected to benefit more people, as well as help save huge foreign exchange being spent by the government on the importation of vegetable oil.
Government is using a nucleus agricultural model where small-scale farmers are encouraged to produce palm oil alongside large plantation producers, and these out growers say with five acres, are given an incentive of US $ 6,000 from the time they start farming to the harvest period. Other residents dealing in fish, piggery and poultry are also supported by the government.