CEC to meet over rising food prices
President Museveni yesterday revealed that his ruling National Resistance Movement party’s top organ—the Central Executive Committee or CEC—will meet next week to discuss the issue of runaway commodity prices.
In his Easter message, Mr Museveni said he “will discuss with the caucus the issue of the high commodity prices” in the coming days before addressing Ugandans. The President also said he is aware the runaway prices “are disturbing our people.”
A statement presented to Parliament by the junior Trade (Industry) minister, David Bahati on Thursday made clear the government’s plans to support farmers to grow more food and vegetable seeds and cereals to ensure sufficient domestic supply and also boost export earnings.
“Exports like maize can be used as substitutes by regional partners who have been more dependent on imports from affected countries like Ukraine,” the statement reads in part.
It further stated that the government is fast-tracking the implementation of Parish Development Model to increase production of strategic commodities for domestic consumption and export.
The statement also said the government will continue to provide a free and fair competitive environment to support continuous supply of fuel. The government will also work with the private sector to expand alternative fuel import routes across Lake Victoria to avoid unnecessary supply disruptions.
“In the same vein, use of [price controls], subsidies and tax reductions are not only unsustainable, but also cause market distortions and smuggling and lead to revenue loss,” Mr Bahati said .
The minister also noted that the Ministry of Energy and Mineral Development will continue to regulate domestic fuel markets to ensure that prices reflect the economic environment.