Posted on April, 25, 2025 at 09:33 am
Rwanda’s annual rice imports surged from 417,862 tonnes in 2023, to 508,852 tonnes in 2024 – implying a 21 per cent rise – according to the Ministry of Trade and Industry. This rise pushed the import bill from $238.9 million to $317.2 million, marking a 32 per cent jump.
The national demand went up from 504,649 tonnes in 2023 to 596,938 tonnes in 2024.
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Despite this growing demand, local rice production continues to fall short, meeting only 17 per cent of national needs in 2024—a decline from 22 per cent in 2023.
The gap has been filled by imports, which represented 78 per cent of national demand in 2023, and 83 per cent in 2024.
The growing rice import bill presents both a challenge and an opportunity.
“Local production is still below compared to the national demand for rice. This means there is an opportunity for local farmers as well as rice mills to produce rice,” Prudence Sebahizi, the Minister of Trade and Industry, told The New Times.
Even with the limited domestic production, local farmers have been facing an issue of lacking ready buyers for their rice produce.
Also, local rice mills have been arguing that they are sometimes unable to buy the farmers' produce because of an influx of imported rice that is relatively cheap — and is of better quality— compared to the locally produced rice.
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Sebahizi said it was observed that sometimes the harvest for farming season B [around June] coincides with the harvesting period in Tanzania where most of imported rice comes from.
In that case, he pointed out, prices may fall below the cost of production of paddy rice and local rice mills who might have procured it at higher prices are unable to sell processed rice at the market until Tanzanian rice is reduced.
Other factors include; lower prices and good quality of Tanzanian rice as compared to local rice, he said, adding that these include high productive soils, low cost of production and processing costs and aromatic rice.
Banning imports seen as a risky move
While the option of banning rice imports can allow local farmers and processors to sell at better prices, Sebahizi said, it represents a risk.
“There is no doubt this option may cause shortages and lead to uncontrollable or skyrocketing prices given that Rwanda depends heavily on imports,” he said.
Understanding consumer preferences
For agricultural economist Birasa Nyamulinda, it is important to understand local market segments, pointing out that consumer preferences, including demand for Tanzanian and Pakistani rice, influence import volumes.
“It’s the market that determines price and demand,” he said, pointing out that some foreign nationals in Rwanda also prefer rice from their home countries.
The rising import bill, he added, should signal opportunity. “Local producers need to tap into that [over] $300 million market. But they must cater to diverse consumer preferences.”
New pricing model in practice
Jean Damascene Rwamwaga, president of Rwanda Rice Farmers' Federation, said the government’s withdrawal from direct price setting has shown early promise.
Previously, the Ministry of Trade and Industry set prices through stakeholder consultations. But under the new model, the farmers’ federation and the rice mills’ forum jointly determine purchase prices—first applied during the 2025 farming season A harvest (in January and February).
Though, overall, the new prices were over Rwf50 lower per a kilogramme of paddy rice compared to the earlier government-set rates, Rwamwaga said that they helped ensure sales and kept the supply chain moving.
“Instead of holding out for higher prices that mills can’t afford—resulting in unsold rice and unpaid farmers—we’re now aiming for fair profits that support continued farming,” he said.
Rice import management, collaboration key to market stability
Speaking to The New Times, Laurent Ndagijimana, Chairperson of Rwanda Forum of Rice Milling Industries, echoed these sentiments. He welcomed the new pricing model, which considers both farmer investment and market conditions.
He also cited government intervention to buy unsold rice as a stabilising factor, though he pointed out that, given Rwanda’s production shortfall compared to the domestic demand, farmers should generally not struggle to find buyers.
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Ndagijimana underscored the need for import management to protect domestic producers.
“The country should develop an effective plan for the rice it needs to import in a given period to supplement its production,” he said, pointing out that this is a common practice among countries.
To ensure consistent local supply, he rooted for increased production of high-quality rice varieties, strict processing standards, and the development of storage infrastructure in partnership with the government to preserve rice that lacks immediate buyers.
“If local farmers lose access to markets, they will be discouraged from continuing production,” he warned. “Yet increasing domestic output is essential to reducing our dependence on imports,” he said, warning of a risky situation that may arise from rice export limitations by major producing countries.
Julienne Niyitegeka, a rice farmer in Kirehe District said local producers need to study why certain imported rice is more popular and find ways to make domestic rice equally attractive.
“We need to identify and grow rice varieties that can truly compete with imports,” she said.
Rwamwaga also reiterated the significance of improving research for the development of quality rice varieties that are competitive with the imported ones, as well as ensuring proper post-harvest handling of the commodity and its processing.
Strategic measures to boost local production and processing
Sebahizi said that measures have been envisaged to address the challenges facing local rice growers by ensuring consumers are also protected from paying higher prices, Sebahizi indicated.
Regarding production, he said the measures include expanding extension services and capacity building to farmers on best agricultural practices, developing new marshlands and rehabilitating damaged ones to increase local production, promoting aromatic varieties to compete with imported rice, and rehabilitation of poor feeder roads.
Measures related to processing are ensuring local rice mills comply with required grading and standards for milled rice, promoting new milling technology and product diversification, such as fortification; improving access to working capital (loans at low interest rates and flexible terms) for rice mills to buy paddy rice, pay farmers on time and expand the storage capacity of warehouses, Sebahizi indicated.
Concerning trade and marketing measures, he cited ensuring local rice mills are linked to wholesalers and importers to facilitate the distribution of rice, and the government’s withdrawal from price control to leave market forces to determine the prices alone, as measures.
Meanwhile, he said the government contracted East Africa Commodity Exchange (EAX) – in case local rice lacks ready buyers – to purchase local rice production and supply it to schools under the school feeding programme and this became a secured market for rice farmers.
Source: The New Times