Stocks from first season bumper harvest reduce.

October 23, 2018

After being exposed to losses in the 1st harvest season due to low price, farmers adjusted their usual planted acreage because it was what they could afford to plant. This is one of the methods farmers have decided to absorb losses incurred in previously low market price periods like the one for the first season. Those who initially cultivated 5 acres planted only half of what they did last year estimated at 2 acres in trying to break even in the 2nd and final harvest season 2018.

Given the scattered distribution of rainfall during July to October, part of the crop planted did not succumb to reduced availability of rainfall during the 2nd season. This could have adverse effects on the 2nd season harvest if the rainfall does not continue into November and December 2019. The highest grain price of the season is forecasted during January just before the opening of the new season.

The demand for maize at the regional produce border hub at Buisa was very low and likewise few traders turned up with maize recording low supply. Demand from Kenya has reduced due to surplus from both Uganda’s purchased maize and maize from their harvest.

In the western region the Rwandese traders bought maize at different price depending on distances travelled as far as Kibaale, Kamwenge, Ibanda, Kyenjonjo, Isingiro and part of Nakivale at Ugx.400-500/kg. Traders who supplied grain to Mbarara equally bought from the same locations and offered it at Ugx.500/kg wholesale price.

Some Super rice was also received in the region from Tanzania via Mutukula distributed to towns in the region. In Mbarara, a 25kg pack cost Ugx.50,000 while a 50 kilo bag was offered at Ugx.90,000.

The surplus of Super rice from Tanzania has contained the increasing price of Ugandan rice. In Kampala, rice retailed at Ugx.3800/kg -Ugx.4000/kg.

Maize was bought in Kamwenge at Ugx.500/kg. Grain supply has reduced and the rate at which Rwandese traders were purchasing had declined. They demanded for maize though preferred it cheaper and they are expected to buy maize until March 2017 when their harvest is presumed on.

Harvesting of maize in Kapchorwa is on. However, there is no market for the grain. A kilo of maize was offered at Ugx.400. In Mbale and Tororo, it was offered at Ug.450/kg and Ugx.500/kg respectively.

In Kampala, maize stabilized at Ugx.550/kg and the increment in the maize price has had an increasing adverse effects on the maize flour price to Ugx.50,000 per 50kg sack.

At the new Mandela Maize silos in Busega, maize was bought at Kampala’s market price (Ugx.550/kg)

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