{{Local wheat farmers are set to increase their earnings after one of East Africa’s largest flour millers, Bakhresa Grain Milling (BGM) Rwanda, pledged to purchase the grain locally.}}
The company, which has its headquarters in Tanzania, further pledged to help local farmers increase yields in order to reduce the high cost of importation of raw materials from overseas, which heavily affects its overall business and pricing structure.
The company also promised to channel the import savings to growers by paying them more for their produce.
Mr Julius Ndunga, the head miller at BGM Rwanda, said that the cost of importation of one tonne of wheat from the US to the port of Mombasa goes for an average of $600.
According to Mr Ndunga, BGM has a daily capacity to process 250 tonnes of wheat and 7,400 tonnes per month.
He, however, bemoaned that local farmers supply the company with a meagre 0.1 per cent with the rest imported from the US, Canada, Brazil, Argentine, Russia, Ukraine and Australia.
He further pointed out that at least 17 trucks ferry the commodity from Mombasa to Kigali with each carrying 30 tonnes of wheat.
Mr Ndunga believes the presence of their plant is crucial to the country but reiterated the opportunity lost to make more profits owing to the high cost of importation of the raw material.
According to officials at the ministry of Trade and Industry, the problem is not unique to Rwanda, but the whole region.
They pointed out that even in Tanzania where Bakhresa is based; wheat is imported as local farmers cannot meet the demand.
{ Agencies}
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