Low demand for grain as commodity prices increase | Week 08, 2022

Rice commodity

Less maize grain is finding its way to main markets. Transit traders in the business noted that the maize grain price was increasing due to several factors. The rising fuel price has significantly increased the maize grain price. Additionally, maize is scarce and currently the traders are traveling extra distances to ferry the grain from far places such as Kakumiro, Kibaale, Sembabule, Kagadi, Kyegegwa and Masindi.

In Kampala markets, maize price was stable compared to the previous week. It was expected higher as less grain gets to the market. Traders speculate that the grain price might hike to Ugx.1200-1300/kg Mid-May. Maize flour was offered at Ugx.1600/kg wholesale while maize brand at Ugx.500/kg at wholesale.

At the grain Border post market in Busia, there was less demand for maize grain due to the increased prices right from the sourcing areas. Volumes arriving at the border market had declined. Below 600MT were traded daily at this particular market. Good quality maize was offered at Ugx.951/kg (KSh.31) while Fair quality at Ugx.942/kg (Ksh.30.7). The least acceptable quality was offered at Ugx.933/kg (Ksh.30.4).

There was a slight increase in the production areas such as Kiboga, Kyankwanzi, Masindi and Mubende indicating that Maize was becoming very scarce.

Super rice supply on the market had declined especially from Tanzania leading to an increment in the market price. The estimated Uganda Super rice production last season was very low and the yield/quality was very poor. The supply from within was offered cheaper than the Tanzanian supply. Super rice price has since increased to Ugx.3100-3600/kg at wholesale depending on the quality. Current Super rice sources include Soroti, Gulu and Tanzania.

A considerable supply of beans was received in Kampala, however, at a higher price. Short Nambale was preferred at Ugx.2100-2200/kg wholesale price. Long Nambale and Rosecoco beans were offered at Ugx.1800-1900/kg wholesale price. Kanyebwa and Yellow beans cost Ugx.2000/kg and Ugx.2500/kg respectively.

At the border produce market in Busia, reduced beans trading was also registered this week. Below 500MT of assorted beans variety was traded across in this particular market on a daily. Yellow beans and Sugar beans were offered at the highest price of Ugx.2701/kg (Ksh.88) and Ugx.2916/kg (Ksh.95). Short Nambale and Rosecoco were offered at Ugx.1995/kg (Ksh.65).
Wailimu cost Ugx.1688/kg (Ksh.55), Mixed beans at Ugx.1412/kg (Ksh.46), Long Nambale at Ugx.1934/kg (Ksh.63) and Red beans at Ugx.1596/kg (Ksh.52).

Other commodities demanded at Busia Border post included Millet at Ugx.2271/kg (Ksh.74), Sorghum at Ugx.1043/kg (Ksh.34), Groundnuts at Ugx.4512/kg (Ksh.147), Simisim at Ugx.5034/kg (Ksh.164), Cassava chips at Ugx.890/kg (ksh.29) and Green grams at Ugx.2578/kg (Ksh.84).

Download this week’s Price Outlook (21st  February – 27th February, 2022) for the detailed wholesale and retail prices of selected commodities across the various regions of Uganda.

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