Maize grain price increases.

October 8, 2018

The maize price increased in Kampala markets from Ugx.400/kg the previous week to Ugx.430/kg. The market price can only increase since the volume of the previous harvest is on a decline and quality is at its best.  Effects on quality such as insect damage and discoloring have less impact on price during offseason period (Nov- Jan) especially with scarcity.

The month of August has been associated with preparations for planting, however, the shift in the weather pattern has changed the outline.

Maize price has been at its lowest after the 1st season harvest during August indicating increased supply. This is usually the peak of the first season and it reflects low quality grain on the market due to high moisture content level as post-harvest handling intensifies.

Apparently, during 2017, the pattern changed. Last year the season seemed to have arrived early in July and was not good. It registered newly harvested grain at a high price.

As demonstrated, the grain price dropped drastically after receiving two corresponding bumper harvests (Seasons 2017B & 2018A).Some areas were affected by the above normal rainfall during this year. Food security issues in Karamoja will be potently felt next year because they have one season due to the same effect.

The 2018A seasonal maize prices were uniquely low at Ugx.380-390/kg in Kampala, however, similarly in Feb 2015, it dropped to Ugx.480-500/kg. Earlier in 2012, the grain price also declined to Ugx.500/kg in the city.

At Busia produce hub, the volume of maize and beans crossing to Kenya declined. Effective 4th October 2018, a low turn up of traders arrived at the border market. This resulted into low demand for maize and beans. Adverse grain supply to Busia also reduced. Other border markets such as Mutukula and Nimule were reported operating faster with increased trading. An estimated 100-200MT of grain was recorded daily after registering a decline in demand for maize.

There was a slight in the Busia grain price increment in maize price from Ksh.12/kg to Ksh.13/kg (Ugx.482) Other commodities were bought as follows Yellow beans Ksh.64/kg (Ugx.2374), Nambale beans Ksh.49/kg (Ugx.1817), Mixed beans Ksh.41/kg(Ugx.1521), Red beans Ksh.42/kg (Ugx.1558), Kidney beans Ksh.41/kg, millet Ksh.33/kg, sorghum ksh.16/kg, soya beans Ksh.50/kg, green grams Ksh.40/kg, groundnuts Ksh.105/kg, and dry cassava chips at Ksh.19/kg.

Farmgain Africa

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