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Uganda Commodity Exchange

Uganda Commodity Exchange. WRS PROGRESS By Alex Rwego. Background. WRS Act passed – 2006 WRS Regulations signed by Minister – 2007 Licensing conditions for maize, beans,paddy rice, cotton and coffee are ready – 2007. Defination of a ware house receipt.

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Uganda Commodity Exchange

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  1. Uganda Commodity Exchange WRS PROGRESS By Alex Rwego

  2. Background • WRS Act passed – 2006 • WRS Regulations signed by Minister – 2007 • Licensing conditions for maize, beans,paddy rice, cotton and coffee are ready – 2007

  3. Defination of a ware house receipt • A ware house receipt is a document of title that shows you the quality and quantity of a commodity that is stored in a licensed ware house. In Uganda the ware house receipt an electronic document. • In Uganda the licensed ware houses are regulated by the Uganda Commodity Exchange.

  4. How does one get to use the WRS? • Register your organisation with the UCE. • UCE will then give you a user name and password to use the system. • You must be located within the hinterland of UCE licensed warehouses. Currently we have a ware house in Jinja, Masindi ,Mbarara, Tororo, Gulu and Kasese.

  5. Benefits of WRS to Farming Communities • Proper storage facilities that are professionally run and secure. • WRS exposes you to markets like WFP, larger grain traders and the regional markets. • WRS exposes you to buyers that you would have never met both domestically and regionally • Access to finance through the banks. Allows you to get 60% of the value of your commodity in order to defer its sale. • Allows you to sell when the price is right rather than right after harvest. • Access to finance has enabled farmers open up more land and improve on their post harvest handling. • In summary it allows you better control over the sale of your agricultural commodities.

  6. How are ware house receipts sold • Direct sales to the WFP • On the commodity exchange trading floor using a set of registered brokers who represent buyers and sellers of agricultural commodities. • BVO procurement model which in design stages. • Direct sale to a buyer of your choice. This now makes you a price maker instead of a price taker.

  7. UCE’s Contribution to the ware house keepers. • UCE: • Civil works (compound, cracks, screening, canopy etc) • Warehouse and SWG training • eWRS installation and training • Grain SWG equipment • Fumigation monitoring equipment • Communication support

  8. UCE Licensed ware house Jinja • Offloading Bay: • Ramp • Canopy

  9. Certifiedweighing scales at the ware house. Serviced , Verified and certified scales

  10. Tariffs at the ware house. • Tariff • Handling • Drying • Cleaning • Storage/Fumigation

  11. Certified staff at the ware house. • Certified: • Samplers • Weighers • Graders

  12. Mechanised cleaning and drying plant. Drying Cleaning Plant: Thanks to ASPS

  13. Cleaning and Drying process

  14. Quality measuring equipment. Sampling and Grading Equipment

  15. Certified Grader. Riffle dividing samples for grading

  16. No Rodents, Birds and pests Vermin Screened

  17. Protected Grains. Fire Safety

  18. WRS Stocks WRS stock on eWRS

  19. Issuance of EWRS Manager of Agroways Issuing an Electronic receipt

  20. Depositors portal for EWRS and Market information.

  21. WRS Achievements • WRS was launched on 28/04/08 • 7 licensed ware houses in Jinja, Masindi,Kasese , Tororo, Gulu and Mbarara • EWRS has over 450 depositors 70% farmer groups and 30% traders • UCE has an MOU with WFP to procure 150’000MT through the system. • WFP has procured over 7000MT through the system. • Over 12’000MT have been deposited through the system • Over 4000 farmers have been trained by UCE around the hinterland of the ware houses. • The commodity trading floor is now operational • UCE SMS platform is currently being designed. • 4 financial institutions have signed MOU’s with UCE to start financing ware houses receipts. Housing finance bank have lent over 300 million shillings using the receipts as collateral. • MOU between UCE and UCDA has been signed

  22. Challenges and Lessons Learnt • Access to credit is central to the success of commodity warehouse system • There is scarcity of suitable facilities for medium to large scale commodity warehousing • Limited stock off-takes initially constrained the operationalisation of the WRS • Limited awareness among potential users. • Limited formal farmerassociations for collective marketing • Lack of adequate funding to promote the system.

  23. What next?

  24. Contact us The Uganda Commodity Exchange 1st Floor Northern wing Social Security House Tel: 031 2 262922, 041 4 345678 E-mail: info@uce.co.ug Web: www.uce.co.ug

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