Capitalizing on “White gold” to further improve nation’s economy, livelihood of farmers

BY LEULSEGED WORKU

Teff is a basic ingredient of staple food for the majority of Ethiopians. For that very reason, life is unthinkable for most Ethiopians without consuming injera which is mostly made of Teff. However, due to economic constraints and the shift in lifestyle, its nutritional value and other reasons, the demand for Teff has increased dramatically. For this very reason, the majority of the society has been forced to mix rice with Teff flour. This is not only to overcome the expensive price of Teff but also to ensure the injera is whitish as the general preference for injera color is whitish.

“Rice Sector Transformation Event in Ethiopia” was organized by the Ministry of Agriculture (MoA) to share the key lessons from Agricultural Policy Research in Africa (APRA) research outputs on rice commercialization and agrarian changes. During the event, it was indicated that rice is a recently introduced crop to Ethiopia. Rice was first introduced to Ethiopia in Gamblella, Pawe and the Fogera plain in the late 1980s. according to report, rice`s introduction to Ethiopia is linked with the request to address the various economic challenges of the society during the Dergue regime. These challenges were related to resettlement issues and food security.

According to APRA research, its advent to Ethiopia is associated with efforts to address famine related challenges in times of Derge regime. However, through time, the demand for rice has increased that forced the country to import considerable volume of rice. Currently, due to the attention given by the government and other stakeholders, rice production has increased in Ethiopia and seven regions are designated as National Rice Hubs for Rice.

The Fogera area is one of the Hubs and has become a major rice producing zone.According to APRA Ethiopia Coordinator, Dawit Alemu (PhD), Fogera plain was once a place where people were under the safety Net program. However, with the commercialization of rice production, there has been a shift in livelihood options and the lifestyles of the communities the Fogera plain. This has resulted in the emergence of commercial centers linked with the boom in non-farm businesses including services like hospitality and finance.

Agricultural Policy Research in Africa report indicated that due to the shift in consumption habits, rice has become one of the major staple food items in Ethiopia. For that reason, the demand for this crop has increased dramatically where the gap between demand and domestic production is fulfilled through import. For instance, in 2006, the country imported 22,500 tons of rice. This figure has increased in 2019 to 533, 620 tons, which is costing the country close to three hundred million Dollar.

According to Dr. Dawit, rice production is the secret behind this economic shift in the Fogera plain. Before the introduction of rice production in Fogera plain, the place was one of the areas where food insecurity is recurrent and economic constraints are rampant. However, with the introduction of rice production, the previous story of the area has reversed.

As it is said by Dr. Dawit, due to the surplus production of rice in Fogera plain, rice commercialization has intensified the economic progress of the place, gave rise to the emergence of other small scale business activities and job opportunities. The increase in production of rice is not only limited at ensuring food security.

Due to its positive impact on the society, it has created job opportunity for several youths living in the area and has positively contributed its share in government`s attempt to reduce unemployment mainly through enhancing the rural-urban linkages.

What is more, the rice production and its commercialization has also encouraged farmers to engage in other agricultural activities, mainly during the off-season and this has enabled Fogera plain to be one of the major vegetable production areas.

Thanks to the agro-ecological suitability of the Fogera plain and emerging trend of smallholder farmers’ business orientation in area, there is an emerging trend of engagement in high value crops mainly different vegetables: Onion, tomato, shallot, garlic, pepper, potato, cabbage, beetroot and carrot by investing in supplementary irrigation facilities (bore halls and water pumps).“Rice production and its commercialization, has considerably contributed to the emergence of improved livelihood options for smallholder farmers in Fogera Plain. In addition, as income increases, rice farmers’ lifestyle has also shifted dramatically,” he remarked.

The increase in household income has also stimulated Wereta city to become one of the economic hub in the Fogera plain, where several banks, hotels and other service businesses have started to operate, which has contributed Wereta to have city administration status. In an exclusive interview with The Ethiopian Herald, APRA Ethiopia, Dawit Alemu (PhD) said that rice has a huge opportunity in Ethiopia. However, to exploit this opportunity, there are several challenges that need the attention of the public sector, private actors and development partners.

Ethiopia`s huge agro-ecological condition to produce rice is one enabling factor to capitalize on rice production. If properly utilized, the country can ensure self-sufficiency. In this regard, aligned effort of different actors mainly the public, private actors and development partners is very crucial.According to him, due to the change in consumption habits, people in urban areas  are mixing the flour of rice with that of Teff. This is a good indication how rice production is important in Ethiopia.

Dr. Dawit stressed that the successes evidenced in the Fogera plain in bringing considerable agrarian changes need to be expanded to in other areas as well. In addition, the current challenges in the production, processing and marketing of rice especially in relation to availability and access to required technologies, skill and knowledge and policy incentives as key bottlenecks need to be addressed.

“De-incentivization” of imported rice is the other area of recommendation where Dr. Dawit mentioned. According to him, as a means to boost farmers’ productivity and replicate rice production in other parts of the country, there should be enabling mechanisms that benefit all rice value chain actors including rice farmers. The more local rice producers are incentivized, the more they can increase production and the nation can save a great deal of dollars it spends on rice importation.

The outbreak of COVID-19 that has impacted the economic style of the whole world has also affected Fogera people. This is particularly true for rice farmers engaged in in vegetable production, where most of rice farmers incurred huge loss due to the vegetable market collapse. The “white gold” that has become a source of livelihood for Fogera people should be supported so as to maximize productivity and the experience of Fogera should be repeated in other parts of the country if the country is to capture the opportunities that rice offers.

It was agreed during the event that in order to capitalize on the opportunities rice offers and addressing the sector faces that there is a need to develop a national rice specific flagship program by the MoA that will guide design and implementation required.

The Ethiopian Herald December 7/2021

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