Grain prices continue to rise amid scarcity | Week 18, 2022

maize grain laid out

The grain market price continued to increase as less grain was reported from our neighboring regional grain source (Tanzania). Stockists from within also released some maize grain to the general market in search for school fees but also to have a share of the increased grain price. Maize in Kampala was in the previous week reported at Ugx.1320/kg, however, it increased to Ugx.1370/kg. During the course of the week, more imported grain was reported coming from Tanzania. The quality was improved and it cost Ugx.1300/kg.

At Busia Border market, demand for maize was still low as previously reported. It was noted that the reason why the grain price will continue to increase, is that maize is off season and at this time of the year, the farming community is planting maize. The grain season is on in Tanzania which gives our neighbors a comparative advantage over the Ugandan maize grain price. Maize was imported into Uganda via Mutukula which dropped the Busia regional market price from previous Ugx.1470/kg to Ugx.1370/kg just like in Kampala.

In Lira, the grain price increased to Ugx.1250/kg. Stockists from there delivered maize to Busia after an eventual return of Kenyan traders when the Tanzanian maize supply declined. An estimated 200MT of maize was registered out of the market via the main gate, however, an equally same amount was purchased informally via different trade routes.

The supply of groundnuts was very scarce leading to an increase in price of Ugx.5202/kg during the course of the week. It is expected to increase given the volumes getting to the market but also the fact that it is planting time for groundnuts in the northern region where predominantly good volumes are delivered to this market via the northern route. In Kampala, groundnut prices increased to Ugx.4900-5200/kg wholesale price depending on the quality and distance travelled. Groundnuts retailed in Kampala markets at Ugx.6000/kg.

There was increasing demand for beans at Busia Produce border market. Apparently, supply of beans was also received via Mutukula – Uganda border especially Yellow beans at Ugx.2876 /kg (Ksh.94). Other bean varieties purchased included Short Nambale at Ugx.2754/kg (Ksh.90), Wailimu at Ugx.2203/kg (Ksh.72), Mixed beans at Ugx.2080/kg (Ksh.68), Long Nambale at Ugx.2631/kg (Ksh.86), New Rosecoco beans were delivered from Busoga and Tanzania at Ugx.2754/kg (Ksh.90).

Other commodities demanded at the Produce border market included millet at Ugx.2686/kg (Ksh.87), Cassava at Ugx.1200/kg (Ksh.39), Sorghum at Ugx.1285/kg-1346/kg (Ksh.42-44), Green grams at Ugx.2600/kg (Ksh.85), Simsim at Ugx.5140/kg (Ksh.168) and Soya beans at Ugx.3150/kg (Ksh.103).

Supply of newly harvested beans was delivered to Kampala markets as well. Nambale beans from Tanzania cost Ugx.3100/kg as well as Yellow at Ugx.3200/kg wholesale price. The old stock beans cost Ugx.2500/kg for both Yellow and Nambale beans. Short Nambale was more costly at Ugx.3300/kg-Ugx.3400/kg. White beans cost Ugx.3000/kg while Mixed beans cost Ugx.2300/kg.

There was a reduction in the supply of Super rice from Tanzania leading to a slight increment in the rice wholesale price in Kampala. Good quality rice cost Ugx.3700-3800/kg.

Download this week’s Price Outlook (02nd – 08th May, 2022) for the detailed wholesale and retail prices of selected commodities across the various regional markets in Uganda.

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