KAMPALA – A total of nine (09) tea factories shut down in Uganda over the high costs of production.
Rising the concern before the House, Gaffa Mbwatekamwa (NRM), MP Igara County West blamed the Government for failing to provide markets for the tea – noting that a unit per kilowatt of electricity is about Shs3,470 unlike those produced within industrial parks where a kilowatt is bought at Shs1,900, and some cents.
“My prayer is that all the factories that have been shut down and those at the verge of shutting down should be bailed out the way we bailed out Atiak Sugar Limited,” he said during the plenary sitting on Tuesday.
Tea production is dominated by small-scale farmers who supply fresh tea leaves to processing plants and according to the Uganda Bureau of Statistics, tea is Uganda’s fourth agricultural export after coffee, maize and fish.
Responding to this, David Bahati, the State Minister for Trade said the Government is expected to present an information paper to Parliament on the status of the tea sector in the country by Wednesday, 21 February 2024.
“An inter-ministerial committee chaired by the Prime Minister has been discussing this issue and we have written a cabinet paper that will address issues like an immediate subsidy to relieve tea factories and farmers,” said Bahati.
James Kaberuka (NRM), MP Kinkizi County West expressed reservations about the minister’s commitments, saying the government had previously alluded to a cabinet paper on the matter during the consideration of the National Budget Framework Paper.
“The minister knows that the tea industry brings a lot of money to this economy. I seek your indulgence Mr Speaker, to allow us bring a comprehensive motion on this matter that can be discussed at length,” said Kaberuka.
Dicksons Kateshumbwa (NRM, MP Sheema Municipality) urged the government to consider establishing and implementing a tea policy to enable Uganda earn better on the international market.
“People pluck the leaves without guidance, that is why Uganda fetches the lowest amount on tea in the region – but not because we do not have fertile soils. We need that policy to improve our quality,” Kateshumbwa said.
The Deputy Speaker, Thomas Tayebwa, said Minister Bahati’s statement will be extensively debated by the House.