Why there is a rise in rice prices

Feb 09, 2022

A suck of paddy rice, like “Kaiso” (as it is called locally) for example, has risen from (between sh230,000 and sh240,000) to sh250,000 and sh260,000.

A suck of paddy rice, like “Kaiso” (as it is called locally) for example, has risen from (between sh230,000 and sh240,000) to sh250,000 and sh260,000. (Photo by Moses Kigongo)

NewVision Reporter
Journalist @NewVision

Rice traders have highlighted the major reasons why prices of rice have started rising on the Ugandan market across the country.

A suck of paddy rice, like “Kaiso” (as it is called locally) for example, has risen from (between sh230,000 and sh240,000) to sh250,000 and sh260,000, while the one being exported from Tanzania known as “super TZ” has also risen from (between sh250,000 and sh290,000) to sh300,000 and sh330,000 respectively within a space of just two months (from December up to February).

This kind of increment has not only affected consumers and traders but has also stimulated the prices of other types like “Super-Uganda” (our local brand) from 280,000 to 350,000 as well as Basmati rice, according to John Bosco Ssenyonga, one of the members of a rice import group called Rice Agribusiness Development Foundation-RADFO.

“The price of rice has increased because the season of harvesting it in most parts of Tanzania like Mwanza, Kahama, Majimoto, Rwenzewe, Kinyanga, Kinde as well as other towns where we have been exporting it ended last year towards the end of December”, says Ssenyonga.

Other reasons for rising prices

Obed Kairugavu, one of the rice traders from Iganga district highlighted three reasons that have significantly contributed to the current rise of rice prices which include: increased demand for rice on the local market ever since schools were allowed to operate at the beginning of this year, increased import clearance taxes like those imposed by RADFO at Mutukula border. 

Also, the recently ended rice season in most rice-growing parts of Uganda like Palisa, Namutumba, Busembatya, Hoima, Lira, Gulu among others.

The rise in rice prices has come at a time when businessmen and local consumers are witnessing an increase in oil prices that have triggered an increase in prices of services like public transport as well as commodities like cooking oil, soap, sugar among others.

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