It also said it does prevent the private sector to buy coffee but forbids them to buy the crop from individual farmers.
The directives were given yesterday by the Deputy Minister for Agriculture Hussein Bashe when speaking to leaders from coffee growing regions in the country.
Bashe said the aim for calling TADB to lower interest rate is to assist farmers conduct coffee farming profitably.
He said the farmers have been getting losses from coffee farming hence the government wants them to benefit commercially.
"This meeting should be a solution for coffee farmers and you are required to discuss carefully and come up with one decision – to build a just cooperative movement that will protect farmers,” said Bashe.
On the issue of coffee buying, Bashe said those from the private sector are supposed to buy coffee from cooperatives, not directly from individual farmers.
“I direct you leaders to look for people who were responsible for the 7b/- debt that KCU is now repaying while it is not theirs,” he said.
He said the debt is inflicting great pain to farmers, saying those responsible must be hunted to say where the money is.
KCU general manager Edson Rugaimukamu said they expect to give farmers better prices that will give them profit, saying up to now they are certain during this season farmers will not incur losses as the union has mobilised itself to give farmers good coffee prices.
Oscar Dominick, an official from KDCU said the union have mobilised to bring benefits to farmers and will cooperate with the government to ensure coffee farmers develop economically.