Several consumer commodities like maize flour, rice, and ground nuts are experiencing a sharp price increase since May.
The increase
in food prices in the country has been attributed to the change in weather and high
fuel prices.
Several consumer commodities like maize flour, rice, and ground nuts are
experiencing a sharp price increase since May. Currently, a kilogram of maize
flour costs 3,600 shillings, up from 2,000, and on average, a kilogram of dry
beans is at 3,300 shillings, up from 2800 shillings, rice is at an average of
4,200 shilling up from 4,000.
Hassan Nviiri the chairperson of Kisenyi Miller’s Association says that they
are experiencing a shortage in supplies due to the low yields from the previous
seasons which were caused by the February-March drought.
According to Nviiri, the season led to low maize supply against high demand and
saw the price rise to 2050 up from 1,300 Shillings.
“It is because of drought which destroyed our crops, and those who had kept
theirs from the previous seasons hiked the prices, and the flour had to rise as
well, remember the demand had been increased because the school had just reopened.”
He explains.
Nviiri adds that they sometimes get maize from Tanzania, but the high fuel
costs increase the transport fares.
Resty Nassali, another maize miller, says that getting a one-tonne maize truck
from Tanzania, costs them 1.2 million Shillings, given the distance and the
high fuel prices. She adds that costs of packaging and loading fees are not
included.
“By this time maize would be ready for harvest but it was not possible because of
the past drought. And this shows that the situation will persist up to around
December unless if a miracle happens.”
According to statistics from the Uganda Bureau of Statistics, maize flour
prices in the country increased by over 46 percent, and this was one of the
major contributors to the country’s inflation rate which stands at 6.8 percent
as at end of June.
The other commodities dealers URN interacted with; also have similar reasons
for the increment of their respective commodities.
Jane
Namukwaya the vice-chairperson of Kampala Rice Traders Association says that
the current rice prices are driven high by the increased fuel prices which have
impacted the transport cost from source to the market.
According to
Namukwaya, most of the rice sold on the Ugandan market is from Tanzania.
She adds
that a truck charges 14.5 million shillings as transport costs from Tanzania to
Uganda.
“The areas which between 500 to 600 kilometers away from Uganda, no longer have
rice, now we get it from Majjimooto which is over 1,400 kilometers longer, and
like Uganda in Tanzania, fuel prices increased as well. In addition, they also
don’t have much rice and the purchase price is up at about 2,700 shillings per
kilogram before factoring in the other costs.” Namukwaya explains.
