During the month of November the maize price in Kampala increased gradually from Ugx.650/kg to Ugx850/kg at the close of the month. The majority of grain was delivered from Kiboga, Kyankwanzi, Mubende, Masindi and Kibaale. Maize was offered at Ugx.500-550/kg in the above production locations during November. Speculators noted that there was less demand for maize because of lack of school activities but also increased production to due abundant rainfall and the lockdown period as most people concentrated in their gardens.

Prices were very similar to those of 2017 when maize was offered at Ugx.650-720/kg. Maize was delivered from the same production areas then where it was offered at Ugx.400-550/kg. Similarly, maize was offered at Ugx.600-660/kg in 2018 November. This time it was delivered mainly from Masindi, Mubende and Soroti.

The reverse was true last year when maize was offered at Ugx.1250-1280/kg during the same period then (November 2019). It was, however, noted that the new maize was delivered in December that year which meant that there was a delayed seasonal harvest. Maize then was mainly delivered from Iganga, Masindi, Soroti and Kapchorwa. In all the above trading periods between 2017 and 2020, Kampala registered the highest offer price for quality maize between Ugx.700-1350/kg at wholesale. This year, supply was mainly registered from Kiboga, Kibaale, Mubende, Kyankwanzi and Kyegegwa.

Millers reduced their maize grain intake after realizing less demand. The price of maize flour in Kampala fluctuated between Ugx.60,000-65000 per sack weighing 50kgs at wholesale. Other grains have equally not fetched the usual margins apart from Millet which was harvested in northern Uganda. The millet price was slowly increasing from Ugx.1000/kg in major markets of Northern Uganda.

The maize price is expected to drop to an unusual price when the second season of the year starts. Speculators are predicting very low market price similar to 2018 as demonstrated above.

The maize price stabilized high at Ugx.800/kg towards the end of the month and several traders were reported stocking for other agencies around Kisenyi market. Most of the grain was purchased by the millers. The quality continued to be affected by rain received then. Most of the harvest has been sold off at a cheaper price compared to last year’s price at the same time. Stockists are believed to have considerable stock that may collide with the newly harvested grain.

In the northern region, maize cost Ugx.600-700/kg in Gulu while in Lira it was much cheaper at Ugx.500-600/kg. Kenyan traders were reported buying maize and beans in Lira. Newly harvested maize was reported in Mbale at Ugx.650/kg and in Tororo at Ugx.600/kg.

Maize was bought at Mutukula border post heading to Tanzania in the opening weeks of the month expensively at Ugx.1250/kg, however, the demand for it declined because of the multiple taxation levied on it.

During the conclusion of the month, the grain buying price at Mutukula declined to Ugx.750-800/kg. Several transit traders consolidated maize and beans in the western region heading to this border market. In Rakai, maize was bought at Ugx.650-700/kg. Maize was registered at a low price in such production areas as Masindi at Ugx.600-700/kg, Kiboga-Kyankwanzi at Ugx.550/kg, Mubende at Ugx.650-670/kg and Soroti at Ugx.600/kg.

A number of transit traders purchased high quality maize in Kamwenge and the surrounding districts heading to Bunagana border destined for DRC Congo at Ugx.770-800/kg. Others bought mixed beans and maize at Ugx.1850/kg and Ugx.1250/kg respectively destined for Rwanda via the same border point. The traders, however, noted that the taxes levied on this produce was high between border points.

Maize at Busia border market was bought at Ksh.22/kg in the opening week of the month. It stabilized at Ksh.22/kg mid-month. It rose to Ksh.24/kg by the third week (Ugx.770} and settled at Ksh.23.5/kg at the closed of the month. Approximately 2,500 Mt were exported via Busia weekly in November.  

There were reports of high demand for produce at border points especially Busia. Huge volumes of assorted beans were recorded throughout the month estimated at 12,800MT weekly in November. Several traders were reported on the market demanding for especially beans.

There is an indication of increased productivity for most staples in this market compared to last year. At this time last year, the border market received maize back from Kenya into Uganda from the Kitale harvest at a price lower than Uganda’s. At the same time, this border market received millet, then, from Ethiopia. When compared, the current prices are lower than the previous year.

Good quality maize was purchased at Ksh.24/kg (Ugx.770) while Fair quality at Ksh.23.7/kg (Ugx.760). The least acceptable quality usually for animal feeds cost Ksh.23.5/kg (Ugx.754) Variation in price during the week was due to fluctuation in the forex rate. Trading went on throughout the closing week of November.

In the beans sector, low prices were reflected throughout the month in most markets at wholesale. Slow trading was equally reported in some markets. In Owino and Kafumbe-Mukasa markets, Sugar and Yellow beans were preferred at Ugx.3300/kg and Ugx2700/kg respectively. Other bean varieties were offered cheaper. Short Nambale (Nabe) cost Ugx.2100-2000/kg at wholesale while long Nambale at Ugx.1900-1800/kg. Rosecoco (Kahura) beans were offered at Ugx.2100/kg while mixed beans at Ugx.1100-1050/kg. White beans went for Ugx.2000-2100/kg. Green beans from Mbarara were offered at Ugx.2100-2200/kg.

Purchasing of beans increased at the regional border produce market of Busia on a weekly basis. An estimated volume of 1500Mt was bought daily in the opening weeks. Yellow beans cost Ksh.89-90/kg (Ugx.2, 963-2,997). Other varieties demanded included Sugar beans at Ksh.84/kg (2797), Nambale beans at Ksh.57-58/kg (Ugx.1,898-1931), Wailimu beans at Ksh.50/kg (Ugx.1,665) and Mixed beans at Ksh.47/kg (Ugx.1,565). The demand for beans increased mid-month to 1400MT-2500MT.

Several varieties were delivered to Busia border market in the closing week of November from a number of production locations. Rosecoco beans were delivered from Kyegegwa, Kyenjojo, Kagadi and Kibaale at Ksh.47/kg (Ugx.1508). Green beans were delivered from Mbarara at a cost of Ksh.55/kg (Ugx.1765). Yellow beans cost Ksh.78/kg (Ugx.2503) while Sugar beans were offered at Ksh.85/kg (Uggx.2728). Mixed beans and Red Wailimu beans cost Ksh.35/kg (Ugx.1123) and Ksh.52/kg (Ugx.1670) respectively. Nambaale beans cost Ksh.78/kg (Ugx.2503). The intake of assorted beans into this market increased by the day.

In the Coffee sector, FAQ coffee was bought at Ugx.3800/kg in the production locations. The quality is expected to improve when the rains subsides. Better yields were expected due to normal to above normal rainfall distribution in most parts of the country.

Low offer price for Arabic coffee is expected this year as a result of increased production amidst low price experienced throughout last year which is considered an “Off-year”.

The Irish potato harvest opened in Mbale-Wanale and Kapchorwa. A 100kg bag of sorted large tubers was offered at Ugx.80,000-85000 in Wanale. Medium sized tubers cost cheaper at Ugx.80.000 for a 100kg bag weighing 100kgs. In Kapchorwa, a 100kg bag of Irish potatoes was offered at Ugx. 80,000. In the western region, Kabale was going through a minor harvesting season and offered Irish potatoes at Ugx.150,000-160,000 per sack weighing 120kgs. The major season is around the corner and should be on in December/January.

Farmgain Africa

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