A farmer harvests rice from his garden in Bukedeya district 3



Preliminary results of a study to assess domestic private sector investment to support climate risk management along agricultural value chains in Uganda reveal that drought, floods and rising temperatures are a major hindrance to rice growing.

These calamities, according to the findings negatively affect all actors along the value chain such as rice millers, transporters, consumers and service providers by causing price increases, disruption in transport and food scarcity. These conditions make loan repayment a challenge for the farmers necessitating loan rescheduling by financial institutions and creditors whenever farmers experience such unpredictable climatic conditions.

Other financial options proposed to aid climate risk management along the value chain include integration of climate literature with financial literature programmes, provision of insurance cover to farmers, and provision of modified drought resistant seeds by seed companies.

The study conducted by EPRC and International Institute for Sustainable Development aims to provide evidence for domestic seed companies and commercial banks in Uganda of the opportunities to support climate risk management along rice value chains and to identify policy options for Government to assist other stakeholders in risk management along agricultural value chains.