Maize from West Uganda spots higher price at Busia Produce hub | Week 03, 2022

maize stock

Harvesting maize grain continues in the western region particularly, Kamwenge, Kibaale, Kakumiro, Kyankwanzi, Kassanda, Hoima and Masindi. Demand for maize was gradually increasing leading to rising grain price. Maize was purchased at Ugx.650-670/kg farm-gate price and Ugx.750/kg wholesale price in Kamwenge town council market. A number of transit traders were reported from Burundi via Mutukula-Tanzania border post.

At Busia regional border post market, good quality maize grain was purchased at Ugx.924 (Ksh.30) while fair quality grain at Ugx.908 (Ksh.29.5). The least acceptable quality usually purchased here for animal feeds cost Ugx.883 (Ksh.28.7). Loads of maize grain loaded in sacks were traded formally and informally due to the delay caused by the incoming trucks from Kenya.

An estimated 600Mt of grain was traded on a daily via the Busia regional produce border market. Increased maize grain supply was recorded which registered the market price unstable. Speculators noted that the search for school fees could have led to increased supply.

In Kampala maize price was stable at Ugx.800/kg although some transit traders offered to sell at a slightly lower price than it was the previous week. Maize flour price particularly in Kisenyi Dry Grain market declined slightly to Ugx.78, 000-80,000 per sack weighting 50/kgs at wholesale price. The grain price is forecasted to increase sharply by March-May due to limited supply then.

In Mubende, maize was offered at Ugx.740/kg. The maize yield here is expected low esp. this season due to dry spell effects. Likewise low maize production was expected from Masindi this season. It was offered at Ugx.700-800/kg per kg. Maize was offered at a higher price in Busoga region where the initial supply usually comes from. Iganga reported maize grain at Ugx.800/kg while in Bugiri at Ugx.850/kg wholesale price. In the northern region markets, maize price was reported declining in Lira at Ugx.750/kg wholesale level, however, Gulu recorded its maize at Ugx.800/kg.

Unexpected rainfall was received during the course of the week in some parts of the country. Usually when the farming community receives two or more downpours, preparations for planting the first seasonal crop starts. It appears the rainfall currently received does not mark the start of the season.

According to Uganda National Meteorological Authority (UNMA), Vol.2, issue No.1 dated 11th-20th January, the ten days rain forecast of rainfall and temperature, indicates dry conditions and much warmer conditions to persist in mid-January. The current rainfall forecast portrays a continuation of dry conditions in northern, north eastern and eastern including central with erratic and light rain expected in some areas in south western and central western.

Trucks importing rice from Tanzania to Uganda were stuck at the Mutukula border following an increase in the fees levied per 100 kgs of rice from between Ugx.2, 000 and Ugx.3000 to Ugx.20, 000. Traders reported that the fees were charged by the Kampala Rice Traders’ Association.

Plenty of Irish potatoes and matooke were harvesting in Fort Portal–Kyegegwa. Apparently the maize is yet to be harvested and still highly priced. Bunches of matooke cost Ugx.3, 000-6000 depending on size. A sack of Irish potatoes weighing 130-150 kilos cost Ugx.60, 000-70,000 at wholesale. In Kampala the same bag was offered at Ugx.130, 000-150,000 depending on supply on the day.

Commodities recently harvested reported cheaper prices in Mbarara City. Harvesting millet started and this has led to a resultantly low wholesale price of Ugx.1800-2000/kg. Maize was offered at Ugx.650-800/kg depending on location and quantities offered. Cassava flour was equally cheap at Ugx.900/kg wholesale. A kilo of maize flour was offered at Ugx.1500/kg at wholesale.

More beans supply was registered at Busia. An estimated 700-1200 Mt of assorted beans varieties were delivered to Busia Produce border market daily. Yellow beans were purchased at Ugx.2279/kg (Ksh.74), Short Nambale at Ugx.2002/kg (Ksh.65), mixed beans at Ugx.1663/kg (Ksh.54), small mixed beans at Ugx.1293/Kg (Ksh.42), Rosecoco beans at Ugx.2002/kg (Ksh.65), Wailimu beans at Ugx.1509/kg (Ksh.49) and sugar beans at Ugx.2772/kg (Ksh.90).

Other commodities demanded by transit traders at Busia border post included newly harvested millet grain from the western region at Ugx.2186/kg (Ksh.71) while old stock millet cost Ugx.2310/kg (Ksh.75), sorghum at Ugx.1016/kg (Ksh.33), Cassava chips at Ugx.831/kg (Ksh.27), Simsim at Ugx.4466/kg (Ksh.145), groundnuts at Ugx.4928/kg (Ksh.160) and green grams at Ugx.2618/kg (Ksh.85). There was a shift in the Soya beans price up from Ksh.80-102/kg (Ugx.3141).

Kampala City markets registered generally stable beans prices compared to last week’s prices.

Download this week’s Price Outlook (17th – 22nd January, 2022) for the detailed wholesale and retail prices of selected commodities across the various regions of Uganda.

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