Slow trading due to low purchasing power | Week 34

person purchasing from a market

In the central district market, slow trading was reported for most commodities. Apart from commodities that didn’t feature well in the just concluded harvest such as millet, soya beans, sorghum, maize grain, groundnuts and simsim, very low trading was reported and stable or declining prices reported.

In Kampala particularly, the maize grain price declined from Ugx.900/kg to Ugx.880/kg. Apparently this price was higher than that offered at Busia produce market further registering slow trading at Busia. Produce transit traders offered to sale off in Kampala than to proceed to Busia with a low price.

Maize grain was demanded low at Busia due to Kenya’s current harvest but also Tanzania’s maize export was cheaper than Ugandan maize. The current Uganda grain prices were much higher than other regional prices due to the poor harvest just concluded.

Good quality maize was purchased at Ugx.866/kg (Ksh.27) while Fair quality at Ugx.850/kg (Ksh.26.5). The least acceptable quality was offered at Ugx.828/kg (Ksh.25.8). Only less than 100MT were traded daily throughout the week. In the Northern region markets such as Gulu, maize was offered at Ugx.800/kg while in Lira it cost Ugx.900/kg. Elsewhere in the production areas such as Kyankwanzi, maize cost Ugx.780-800/kg. In Mubende and Masindi, maize cost Ugx.750-800/kg and in all these markets. Most of the maize supply continues to be sourced from the Western region from such locations as Kagadi, Hoima and Kyegegwa. In the beans section, regular beans supply was registered in Kampala rendering prices stable. The market preferred varieties such as Short Nambale, Yellow beans, White beans and another recent variety Army green beans.

In the fresh commodity market, prices fluctuated depending on the quality of supply. Tomato price was more volatile between Ugx.150, 000 to Ugx350, 000 a box ply weighing approximately 120kgs.

A bag full of green pepper, cost Ugx.200,000 weighing approximately 80kgs. Passion fruits gradually registered increasing prices and a bag full of purple passion fruit cost Ugx.600,000 and above while that of yellow passion fruit usually from Kasese cost Ugx.300,000-400,000.

The supply of lemon continued to be registered very low. Earlier, lemon supply from Kenya died out and likewise Tanzania. One lemon piece cost Ugx.500-1000. But currently there is no supply of lemon. Transit traders stretched their search for lemon from Burundi but now there is hardly any supply from that particular market. A small sack cost between Ugx.80,000-90,000.

At the border produce market of Busia, variations in volumes traded were registered daily between 200-500MT. Sugar and Yellow beans were preferred at Ugx.2728-2792/kg (Ksh.85-87) and Ugx.2150/kg (Ksh.67) respectively. Short Nambaale and Rosecoco cost Ugx.1958-2086/kg (Ksh.61-65). Army beans were offered at Ugx.2086/kg (Ksh.65), Wailimu beans were offered much cheaper at Ugx.6517-1829/kg (Ksh.55-57). Mixed beans cost Ugx.1348-1412/kg (Ksh.42-44). Other commodities that were demanded at Busia by Kenyan transit traders included dry cassava chips at Ugx.738/kg (Ksh.23), Green grams at Ugx.2502/kg (Ksh.28), Soya beans at Ugx.3017/kg (Ksh.94), Sorghum at Ugx.1091/kg (Ksh34), Simsim at Ugx.4750/kg (148), Groundnuts at Ugx.4654/kg (Ksh.145) and Millet at Ugx.2760/kg (Ksh.86).

The millet price declined slightly in Kampala mainly due to supply from the Northern region where harvest is going on.

Download this week’s Price Outlook (23rd – 28thAugust) for the detailed prices of individual commodities in the different regions of Uganda.

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