Group storage to earn more from maize
Maize farmers are often forced by poverty to sell their crop when prices are lowest. But in Rwanda, a group of 60 farmers are among the first to benefit from a system called warrantage which is enabling them to earn double the normal price paid by traders at harvest time. Under the system, farmers deposit their maize in a group storage shed and can receive 60 per cent of the value of their stored crop as a low-interest loan. The group, in partnership with a local bank, then sells the maize when prices are high, greatly increasing farmers' profits while also giving them access to credit at the point in the season when they most need it. Eric Kadenge reports on this initiative, which has now spread to several thousand farmers in Rwanda's Eastern Province.
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