Increasing commodity prices were registered during the month of April. Stockists held on to their stocks as they speculated for the highest margin from the 2nd seasonal harvest that came late in January/February. More bulking of grains and pulses was recorded, especially in the northern region, however, it was reduced by unusual transit buyers from Rwanda who ventured into the region in search for maize grain at the onset of the year.
The main maize market in Kampala recorded in the opening week at Ugx.1,380/kg in Kisenyi /Kafumbe Mukasa Road Market. It gradually increased in the weeks that followed to Ugx.1,550/kg at the close of the month. Increasing volumes of maize flour consumption were observed in the urban and peri-urban locations where other staples in the food cart reduced.
The maize grain price is expected to increase further before the first seasonal harvest this year probably in late June/July. Supply from the regional market especially Tanzania kept the rising grain price checked and will continue to influence the grain prices if the transit traders continue deliver maize at lower market price compared to that on the Ugandan market.
During the month of April, 2025 prices were much higher compared to 2024 prices, though lower than the 2023 prices in Kampala as demonstrated above . Good maize grain yields were realized during the 2nd season of 2024 especially in the Northern region due to better rain distribution in the same location. It is also true that the western region 2nd seasonal yield was highly affected by an extended dry spell especially around Rakai, Kyotera, Masaka production locations.
Slow maize trading was reported during the month of April at Busia produce border post.Good quality maize was purchased at the beginning of April at Ugx.1390/kg (Ksh.49). Very little maize crossed from Uganda to Kenya simply because Kenya was receiving cheaper maize from Tanzania.Some trading resumed at Busia towards the close of the month of April.
High bean prices were equally registered on the market in Kampala/Busia markets. In a reverse direction, Uganda continued to receive beans from Ethiopia via Kenya to Busia. The market registered two prices for beans from Kenya and Uganda. These beans were supplied to Soroti but later on they found market in Jinja, Iganga and Kampala markets.
An estimated 120MT of beans crossed from Kenya to Uganda daily during the month of April because of the high commodity prices in Uganda. Kenyan transit traders delivered beans from Ethiopia to Busia . Yellow beans were offered expensive at Ugx.4089-4118/kg (Ksh.144-145)Kg while as Short Nambale cost Ugx.3,835/kg (Ksh.135), Large Nambale at Ugx.3550/kg (Ksh.125). Mixed beans were offered at Ugx.2556/kg (Ksh.90).
Short Nambale from Uganda cost Ugx.3976/kg (Ksh.140). The beans prices eventually declined slightly as more deliveries were made from Tanzania via Namanga and Sibanya border posts. Some mixed beans were also received from Kisoro/Kabale.
Fluctuating bean prices were reported in Kampala market being the major demand centre. Supply was delivered from all corners including sources beyond the borders such as Republic of Congo, Ethiopia via Kenya and Tanzania. Supply was also registered internally on the Kampala market from Buhweju and Kasese- Mubuku irrigation settlement.
Yellow beans from Tanzania were preferred at Ugx.4100/kg, while short and Nambale beans cost Ugx.4200/kg and Ugx.4000/kg respectively. The old stocked Long Nambale dropped to Ugx.3500-3700/kg depending quality. Mixed beans from Kabale and Kisoro cost Ugx.2800/kg at wholesale.
Cheaper millet grain was received from Gulu and Lira to Kampala compared to the supply from Mbarara. Supply of millet declined during the course of the month and registered an increasing market price from Ugx 2500/kg at wholesale to Ugx3300/kg wholesale
Similarly, Super rice price increased from Ugx.3000/kg at wholesale level in different markets across board to Ugx.4200/kg. A lot of adulteration with other rice varieties on the market were done to have a better margin. Plenty was delivered mid month from Tanznia registering a slight decline in the super rice market price.
More super rice consumption has been observed over the past few years especially in the urban areas. A big percentage of this rice has been imported from neighbouring Tanzania since the Covid 19 days. Paddy rice flourishes in the swampy areas where unfortunately production for small & medium households in Uganda is not rising.
The decline in Super rice price is mainly attributed to the increasing volumes delivered from Tanzania on haulers to towns countrywide. Supplemented with inputs at production and charged with taxation at harvest has boosted the farming community in Tanzania further expanding production to supply regional markets that are 1000 kilometers away from their production locations.
This phenomenon regressively affected the super rice producing farmers especially in the eastern region but also other rice variety such as upland rice that could not compete with the Tanzanian rice and lead to adulteration of super rice in major markets.
Farmgain Africa
