Tanzania government calms fears amid spiralling maize flour prices
Dar es Salaam/regions. Consumers are digging deep into their pockets to pay for a kilo of maize flour, country’s main staple food, following spiralling of its price across Tanzania, ahead of the November Consumer Price Index (CPI) release tomorrow.
However, the government has maintained that this trend does not mean that there is a crisis of food but assured citizens that the country is food secure.
The acting director of trade and marketing at the Ministry of Industry and Trade, Mr Wilson Malosha, told The Citizen yesterday that the spiral was due to supply side.
He said the price of flour is not only influenced by availability of maize, but also transport costs from farms to millers, and they vary from one region to another.
“Usually, the supply is the one which determines consumer prices,” he said.
The ministry data shows that wholesale maize prices across the country as at November 6 ranged between Sh50,000 and Sh120,000 per 100-kilo bag.
Mwanza Region recorded the highest price of between Sh115,000 and Sh120,000 per 100-kilo bag.
Njombe Region had the lowest prices ranging between Sh50,000 and Sh55,000.
Spot surveys carried out by The Citizen in different regions showed that prices of maize flour have increased by between 20 to 60 per cent during the period of one month. Markets in different regions quote maize price between Sh1,200 and Sh1,600 per kilo from an average of Sh1,000 recorded early last month.
The surveys show that the increased demand for maize, in both domestic and export markets, was the main reason behind increased wholesale prices.
The Bank of Tanzania (BoT) monthly economic review for October shows wholesale price of maize had nearly doubled to Sh71,046 per 100 kilo in September this year from Sh39,691 recorded in September last year.
People familiar with grain market told The Citizen that the prices might continue to increase further until February next year, during the harvest season.
In that case, he said, price may not ease any time soon as the National Food Reserve Agency (NFRA) stock can’t meet the current demands.
The NFRA had only 61,710 tonnes of food stock by September, down from 78,224 tonnes in September 2018, but no details of the quantity of maize stock availed.
The local maize demand stands at 5.3 million tonnes annually, but production during the last season was 5.5 million tonnes countrywide.
The BoT report shows that the September’s food stock was equivalent to a quarter of food stocks amounting 265,046 tonnes recorded in September 2015.
In Dar es Salaam, the price of maize flour has climbed to an average of Sh1,600 per kilo from the previous Sh1,200.
In Mbeya, the price of maize flour has hit Sh1,400 and Sh1,500 from Sh1,000 due to increase of maize price.
Mr Oriva Sanga, a trader at the Ikuti Market said opening of maize exports, resulted into hiking prices.
“High price is triggered by increased demands as traders are flocking to the region to buy maize direct from the farmers,” said Ms Jane Michael, a trader at the Sido Market, Mbeya City.
In Arusha, the survey has shown that the maize flour is now sold at an average of 1,400 per kilo from Sh1,000 in a wake of scarcity in maize supply.
Mr Julius Emmanuel, a trader at the Arusha main market said the price started to increase January this year.
In Katavi Region, one of the main producers of maize, cereal traders said the price of maize flour has increased by 40 per cent to Sh1,400 per kilo from Sh1,000 in one month period.
Mr David Atanas, a cereal trader at Mpanda Market said a 100-kilo bag currently sold at Sh87,000 from Sh35,000 recorded during the 2017/18 season.
In Mwanza, maize flour price jumped to between Sh1,400 and Sh1, 500 per kilo, compared to Sh1,000 recorded in the recent past.
Agriculture minister Japhet Hasunga said this should be seen as an opportunity for people to invest in agriculture.
Reported by Alex Malanga in Dar es Salaam, Joseph Lyimo and Mussa Juma in Arusha, Jesse Mikofu in Mwanza, Hawa Mathias in Mbeya and Mary Clemence in Mpanda.
