Low demand for Uganda maize at Busia | Week 37, 2022

maize crop

When the price for maize increased in Kampala, most of the transit traders delivering maize grain from the western region decided to sell off at Kampala leaving Busia regional produce hub with no grain supply completely. Busia transit traders resorted to the northern region and parts of the Budama/Bunyoli for their maize requirement. The maize grain price continued to increase last Thursday in Kampala to Ugx.2060-2070/kg which prompted traders from Busia to supply maize to Kampala.

Transit traders in Busia found it profitable to deliver maize from the northern region via Busia to Kampala. They noted that the maize fetched them a margin of Ugx.60/kg. Minimum trading was registered at Busia heading to Kenya. About 5-10 trucks only were destined for Nairobi. Meanwhile, the Kitale maize crop harvest is on and could explain the low demand for Ugandan maize at Busia.

This week, the maize price was registered at its highest in Kampala market. As had been speculated that the grain price continued to increase from Ugx.1850-1900/kg in the previous week to Ugx.2070/kg wholesale price. Meanwhile, maize flour was offered at Ugx.3400/kg. A 50 kilogram bag cost Ugx.170,000 in Kampala at wholesale price. Maize bran price declined to Ugx.770-780/kg. It was observed that the demand for it fell because those who were involved in poultry sold off their birds when the maize price increased so high. Maize has been demanded so highly of late and a number of buyers such as UKomboki and some Sudanese buyers were stocking maize down town Kampala.

Some maize was imported from Tanzania together with Super rice delivered on tracks/haulers. When the maize grain price shot so high, Tanzanian transit traders delivered their grain to Kampala and beyond.

Maize was offered at Ugx.1750/kg in Kiboga-Kyankwanzi area. Traders noted that there was a lot of maize planted and with good rainfall distribution, the next season will be a bumper harvest. In Mubende, likewise, a lot of maize was planted and expected this season.

Maize was purchased at Ugx.1700-1800/kg. In Masindi, a lot was planted and traders noted that some areas that previously had not planted maize have opened up maize plantations because of the current maize grain price. The current high demand for maize in Kampala excited the price in the western rural areas (Kyegegwa, Kamwenge, Kabarole and Kyenjojo) to Ugx.1900/kg. Maize was reported slightly cheaper in the Northern region but scarce. In Gulu it cost Ugx.1800/kg while in Lira it cost Ugx.1850/kg.

Regulated supply of beans continued to reach Kampala market at a high price. Short Nambale beans cost Ugx.3600-3700/kg wholesale price while Yellow beans at Ugx.4100-4200/kg wholesale. Sugar Beans and Army Green beans were equally expensive at Ugx.3700-3900/kg wholesale price.

Other varieties were sold at Ugx.3500/kg. Stockists pushed beans to the border market of Busia after anticipating that the new supply would most likely get to the market late October and early November. Yellow beans, Nambale, Wailimu and Mixed beans were abundantly supplied. Short Nambale cost Ugx.3978/kg (Ksh.130), Yellow beans at Ugx.4406/kg (Ksh.144), Wailimu at Ugx.3121/kg (Ksh.102), Long Nambale at Ugx.3454/kg (Ksh.113), Mixed beans at Ugx.2937/kg (Ksh.96), army green beans Ugx.4161/kg (Ksh.136) and Rosecoco at Ugx.3825/kg (Ksh.125). The beans supply to Busia dropped to less than 500MT daily via the main gate and some illicit trading via the porous border post. Most of this beans supply was destined to Nairobi, Kisumu and Ukamba region.

Price of fresh foods were equally high in most major markets. In Kampala, Matooke and Irish potatoes were delivered at a higher price of Ugx.20,000 per bunch and Ugx.200,000 per sack of irish potatoes. Some supply of irish potatoes continues to be delivered from Nairobi at Ugx.90,000 for half a bag. In Kabale, premature harvesting of irish potatoes has been going on because of the current high price of potatoes. A bag weighing 140kgs cost Ugx.140,000. In Mbarara and Fort Portal, irish potatoes were offered at Ugx.1400-1500/kg. Masindi registered supply of irish potatoes from Kagadi and a bag weighing 120kgs cost Ugx.230, 000. Markets in the eastern region were mainly supplied with irish potatoes from Kenya.

Good supply of tomatoes has been maintained from Kenya to Kampala. Truck loads were parked at Kisenyi-Kafumbe Mukasa Bosco parking offering tomatoes in big box wooden plys similar to those in Kampala at Ugx.250,000-280,000 to Owino market. The Kenyans have since been moved from the roadway along Kafumbe Mukasa and allocated parking. They have also adapted to using the big box plys offered in Kampala rejecting their small ones that were delivered earlier.

Passion fruits have been maintained at Ugx.250,000-300,000 per bag of Masaka passion fruits. Other passion fruit varieties were offered cheaper in Kisenyi Kafumbe Mukasa depot. The current wet season has affected the demand for passion fruit.

Green pepper supply increased forcing the market price low to Ugx.50,000-70,000 per piece.

Download this week’s Price Outlook (12th – 18th September, 2022) for the detailed wholesale and retail prices of selected commodities across the various regional markets in Uganda.

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