1887

The Rehabilitation of the Economy of Uganda

A Report by a Commonwealth Team of Experts, Volume 2

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English

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Policies for Agricultural Rehabilitation

Erroneous product pricing can be identified as the one single major cause of the problems confronting the new Government in the agricultural sector. Serious damage to the national economy has occurred in three major crops: (i) the widespread practice of coffee smuggling, probably running at 25-35% of the total crop; (ii) the decline in tea production by over half the peak production and probably 40% below the normal price per unit because of poor quality; (iii) the decline in cotton production to less than one-seventh of the peak level achieved in 1970 - i.e. the ‘normal’ year we have chosen as a baseline for this report. Due primarily to a shift in the structure of relative prices, productive resources have been switched into increasing the output of uncontrolled food crops, into brewing and distilling activities of the informal sector type, and into labour-intensive magendo trading and smuggling activities.

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