The stability of the current maize grain price is evident that the season will not bear as much yield as usual. The current high price of maize grain compared to the usual price during the start of the harvest would drop further than what has taken place this season. In Kampala, the maize price increased to Ugx.870/kg at Kisenyi-Kampala market. This had an equal effect on the maize flour price higher registered at Ugx.1500/kg wholesale price in the same market.
Traders in Kampala noted that the maize yield this season was low and speculated that the price will hike to Ugx.1000-1200/kg by October 2021. They also noted that the purchasing power of the city dwellers had declined. In other towns and district markets, maize cost Ugx.700/kg in Gulu and plenty was offered. Likewise in Lira, the harvest of maize grain had taken off. However, very low supply of maize was expected and it was offered at Ugx.900-1000/kg. Elsewhere in Iganga, it was offered at Ugx.750/kg, Masaka Ugx.800/kg and Mbale Ugx.900/kg. In Kapchorwa, maize was offered at Ugx.800/kg in the low lying areas where harvest has just taken place while in the highlands namely Kween district the grain cost Ugx.1000/kg.
Trading at the Busia Border post market indicated low demand for maize grain. Good quality maize was offered at Ksh.26/kg while the least acceptable quality at Ksh.24.7/kg. Only 100MT was traded on a daily. It was noted that the low demand for Ugandan maize was as a result of Kenyans obtaining cheaper grain and cereals from Tanzania and Ethiopia compared to the Ugandan prices. Maize was delivered to Busia via Taveta, Sirari and Namanga to Busia on the Kenyan side.
Similarly, other commodities such as sorghum and millet were delivered cheaper from Tanzania via the same trade route. Below 100MT of sorghum were traded at the border produce market. Sorghum cost Ksh.30-31/kg while millet from Ethiopia cost Ksh.77/kg. There was a lot of adulteration of the Ugandan millet with the Ethiopian millet to create a margin.
Beans were offered lower in Kampala because of the same effect of less demand. Short Nambale beans, Kahuura(Rosecoco) and Yellow beans were all offered at Ugx.2000-2100/kg at wholesale. Long Nambaale was offered cheaper at Ugx.1800-1900/kg while Kanyeebwa and ‘Army green beans’ at Ugx.1900-2000/kg. Mixed beans were much cheaper in Kampala at Ugx.1100-1200/kg. In Kabale, Kachwekano beans (Climbing beans) were offered at Ugx.2000/kg while Katuna beans (White and brown) cost Ugx.2600/kg. Most of these were bought off as seed. In Kyankwanzi and Kiboga districts, Nambaale was offered at Ugx.1700/kg while Yellow beans at Ugx.2400/kg at wholesale. In Gulu, beans were offered at Ugx.2000-2500/kg wholesale. Beans were more expensive in Lira at Ugx.2400-2600/kg wholesale depending on the variety.
At Busia Border post hub, beans were equally demanded low due to cheaper supply from Tanzania. Yellow beans cost Ksh.63/kg while Nambaale cost Ksh.58/kg, Saitoti at Ksh.60/kg Wailimu at Ksh.58/kg and Mixed beans from Kisoro at Ksh.43/kg. Only 400MT were estimated purchased on a daily for an assortment of beans varieties.
Tomato supply has since stabilized and the box ply weighing about 120kgs fluctuate between 150,000-250,000.
Download this week’s Price Outlook (2nd – 7thAugust) for the detailed prices of individual commodities in the different regions of Uganda.