Grain price on the rise countrywide | Week 42

maize grain laid out

Less maize grain reached the market throughout the week leading to an increment in the grain price countrywide. Some harvesting was reported in Kapchorwa and part of Soroti. Supply was also reported from Tanzania via Mutukula border post.

As the Kenyan harvest continues to unfold, Kapchorwa was also reported harvesting its grain. Maize cost much cheaper at Ugx.700-800/kg. However, it did not register a lot of demand since the nearest markets that supply into the Kenyan territory reported no demand. Likewise, some freshly harvested maize was reported from Budama/Bukedea region rendering prices in Soroti low at Ugx.700/kg.

Kampala and other major towns received maize from Tanzania. Traders from Kampala bought it at slightly lower market price of Ugx.1030/kg compared to that from within at Ugx.1080/kg. The millers have found the Tanzanian maize lighter when milled thus reducing their margin on maize flour. Other markets such as Kamwenge received this maize at Ugx.1000/kg also via Mutukula. They also noted that this maize was affected by insect damage.

Speculation for a higher maize grain price was reported in most maize concentration areas by local stockiest and transit traders. In the rural areas stocks are held in stores regulated by traders in expectation of better margin by the day. The grain price is expected higher and should have been much high because there is limited supply on the market. The earliest major second harvest season is anticipated in December and January 2022 which appears a long time before the second major seasonal harvest.

Most rural stockists offered maize at Ugx.900-1000/kg wholesale price. At Busia border post market, there was no demand for maize from the Kenyan side and because maize is cheaper there, some traders bought from Kenya to Uganda at Ksh.34/kg (Ugx.1101).

There has been an increment in the FAQ (Kasse) price countrywide and the sector elaborated that the increment was due to increase in the world market because Brazil, the major coffee producing country was hit by frost which affected its production. Currently, the Busoga crop has registered a slight improvement in quality to OT 69%. Major coffee buying houses in Kampala offered to buy Robusta FAQ at Ugx.5400-5600/kg. In the local production areas such as Zirobwe-Luweero, Iganga and Kaliro, FAQ was offered at Ugx.4800-5000/kg.

In the fresh market, plenty of tomatoes were delivered in several major markets. A box ply was offered at Ugx.200, 000-250,000. In Arua, supply was received from Kampala but also from Yumbe district. A ply box of tomatoes was offered at Ugx.280, 000-300,000. Green pepper cost Ugx.100, 000-120,000 per bag while purple passion fruit in Kampala cost Ugx.600, 000 per bag. The demand for passion fruit has not been as good due to rainy weather.

Plenty of an assortment of beans were delivered to several markets as the second seasonal harvest continues. In Kampala, Yellow beans were offered at Ugx.2400-2500/kg. However, supply had declined compared to the previous week. Short Nambale was also demanded at Ugx.2300-2400/kg while Rosecoco and Large Nambale (Nabe 1) at Ugx.2100-2200/kg. Old stock Sugar beans were offered at a much higher price in Kampala’s major markets at Ugx.2800-3000/kg. White beans cost Ugx.1800-2200/kg depending on quality while Mixed beans at Ugx.1650/kg. Other locations offered beans cheaper at Ugx.1500/kg Nambale in Arua, Ugx.1600-1800/kg Kyankwanzi-Kiboga, Ugx.1500-2200/kg in Mbale, while in Masindi at Ugx.1300-1600/kg.

At the border post of Busia, a lot of demand for beans was registered. An estimated 900-1500MT of assorted beans was demanded on a daily throughout the week. Yellow beans cost Ksh.71/kg (Ugx.2300), Nambale at Ksh.59-60/kg (Ugx.1911-1944), Mixed beans at Ksh.40/kg (Ugx.1296) and Rosecoco at Ksh.65/kg (Ugx.2106).

Other commodities demanded by traders from Kenya included Simsim at Ksh.160/kg (Ugx.5184), Green grams at Ksh.75/kg (Ugx.2430), Groundnuts at Ksh.143/kg (Ugx.4633), Dry cassava chips at Ksh.27/kg (Ugx.874), Millet at Ksh.77/kg (Ugx.2494), White sorghum at Ksh.33/kg (Ugx.1069) and Soy bean at Ksh.103/kg (Ugx.3337).

Download this week’s Price Outlook (18th – 23rd October) for the detailed prices of individual commodities in the different regions of Uganda.

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