Funding Gap Threatens Uganda’s Oilseed Industry As Tea Sector Receives Major Bailout

Funding Gap Threatens Uganda’s Oilseed Industry As Tea Sector Receives Major Bailout

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By Spy Uganda

Parliament has raised concerns over what lawmakers are calling discriminatory allocations within the Ministry of Agriculture after it requested UGX 34.63 billion for tea seedling farmers in Western Uganda, while a long-pending UGX 5 billion bailout for Northern Uganda’s collapsing oilseed industry remains unaddressed.

The issue came up on December 2 during a Budget Committee meeting to consider supplementary expenditure requests for the 2025/2026 financial year. The Ministry sought UGX 20.44 billion to settle outstanding payments for tea seedlings supplied to Buhweju and UGX 14.91 billion to clear accrued interest for nursery operators in Ankole and Kigezi under a High Court consent judgment.

Ojara Mapenduzi (Gulu West) led the objections, warning that the allocations reflected deep regional disparities. He noted that lawmakers from Northern Uganda had pleaded for years for oilseed support with no response. “MP Paul Omara almost committed suicide over oilseed support for Lango and Northern Uganda, yet nobody paid attention. Equity must guide our allocations,” Mapenduzi said.

Otuke County MP Paul Omara expressed frustration that since 2021, billions have consistently been directed to tea farmers while Northern Uganda received nothing for oilseed development. He said more than 100 oilseed processing factories in the region are on the verge of collapse, forcing Uganda to continue importing edible oils that could be produced locally.

Concerns were also raised from within Western Uganda. Donald Katalihwa (Mwenge South) questioned why Tooro sub-region, one of the country’s leading tea producers, was excluded from the payments. He said factories in Tooro are struggling and nursery operators remain unpaid despite large payouts going to Buhweju and selected districts in Ankole. Geoffrey Ekanya (Tororo North) added that Bukedi and Tororo face similar neglect, particularly in coffee seedling funding.

Budget Committee Chairperson Patrick Isiagi warned that the Ministry’s request may amount to duplication. He said Parliament already allocates funds for arrears under Treasury Operations but continues to receive additional requests from the Ministry for the same obligations. He asked the Ministry to clarify who benefits from these recurring payments and whether proper accountability mechanisms are in place.

Presenting a minority report during plenary, Ssemujju Nganda (Kira Municipality) urged Parliament to reject the supplementary proposal for tea seedling payments. He said the practice of suppliers delivering inputs for years without an approved budget has turned supplementary spending into a routine bailout for the same districts, while regions like Northern Uganda lack even basic seedling programs and agro-industrial facilities.

Minister of State for Agriculture Fred Bwino Kyakulaga assured MPs that government is moving to correct the disparities. He said the President recently met tea farmers from several regions including Kigezi, Ankole, Buganda, Tooro, and West Nile, and that a comprehensive program addressing sector-wide concerns has been developed.

The disputed payouts fall under the National Agricultural Advisory Services Act of 2001, which mandates equitable support to farmers across the country. The Public Finance Management Act of 2015 further requires that supplementary budgets be transparent, justified, and regionally balanced. Critics argue that repeated allocations to select districts in Western Uganda contradict both legal frameworks and the principles of fairness.

Parliament is expected to revisit the matter next week to determine whether the Ministry’s supplementary request will be approved or sent back for revision.

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