Farmers isolate maize until better offer.

July 30, 2018

Low grain prices were reported in most maize producing markets. Extremely low maize prices were registered in Masindi, Iganga, Kiboga and Mubende at Ugx.280-300/kg wholesale price. Some farmers have decided to abandon their crop until such a time the market will offer a reasonable price.  Several single stand plantation of maize have been left standing isolated till further notice.

Kampala grain market recorded a further decline to Ugx.400/kg in Kisenyi, Nalukoloongo, Nateete and other small markets in the city suburbs. The maize flour retail price has also declined to Ugx.1500-1600/kg.

The border produce market at Busia continued trading maize at a regular pace although the market price is also expected to drop further. Good quality maize was bought Ksh.12/kg (Ugx.436) On average 700-800Mt were bought daily.

Maize production in Kenya is expected above the recent 5 year average following favorable/ good rainfall especially in the Rift Valley area, south western and eastern marginal production areas. Therefore the food requirement gap which is usually fill from regional imports especially  from Uganda and Tanzania is expected to be slightly lower than the 2016-2017 marketing periods.

This literary means that the volume of grain to be purchased by Kenyan traders from Uganda this year will reduce because they (Kenyans) have their owe maize at their disposal. The market price is expected to stabilize low for a few weeks.

Commodity prices are expected lower in most markets during the season in Uganda and Tanzania.

Grain exports to South Sudan are expected to increase in the near future from especially from Uganda.

Super rice price is expected to decline in Uganda although the production in Tororo and Mbale was not very good during season A 2018. Uganda imports rice from Tanzania and other locations. The Tanzanian May –August harvest is expected to be slightly above last years’ and the recent 5 year average. Hence prices are expected to be lower than last years’ in both Uganda and Tanzania. (Fewsnet)

The beans exports to Kenya are expected to increase between July – Dec. The beans price is expected to decline esp. in the 3rd quarter of 2018 due to increased supplies but prices will be comparatively high in the Kenyan market has a structural deficit in production.

In Uganda beans price continue to stabilize low in several markets. Harvesting is going on in the northern region. Other areas have since concluded harvesting. Preparation planting the second and long season are under way.

In Kampala a kilo of beans was offered at Ugx.1300-1500/kg at wholesale. There was a reduction in the retail prices to Ugx.1800-2000/kg further demonstrating an influx of beans in some markets.

Farmgain Africa.

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