Maize prices collapse

Jan 25, 2006

South Africa has poured cheap maize into drought- hit Kenya and Tanzania forcing down Uganda prices of the grain, which had more than quadrupled since the beginning of the year on rising demand from drought-stricken neighbours.

By Macrines Nyapendi

South Africa has poured cheap maize into drought- hit Kenya and Tanzania forcing down Uganda prices of the grain, which had more than quadrupled since the beginning of the year on rising demand from drought-stricken neighbours.

Maize prices in Kampala markets had jumped more than 200% in the past two weeks to sh700 a kilogramme from sh195.

Traders say prices have since dropped from sh700 a kilogramme to sh300 in Kampala and sh245 upcountry. However, maize from Uganda is still being exported to Kenya.

“Ugandan maize has been flowing into Kenya and Tanzania at an increasing rate since December 2005. According to border monitors, 4300 metric tonnes of maize went to Kenya and Tanzania. Local maize prices have dropped because border post traders have moved to the grain basket of Kenya to purchase relatively cheap maize destined for Tanzania,” said Lincoln Talwana, the International Institute of Tropical Agriculture’s Kampala data collector.

“Ugandan maize without proper documentation and with high moisture content has been exported to the neighbouring countries by road, railway and ferry. Schools, institutions and internally-displaced people are threatened with starvation if the unregulated export of maize is not restricted,” said one trader.

The East African Community regulatory requirements for exports and imports of maize state that maize must have a 13.5% moisture content, a certificate of analysis from a recognised laboratory, phytosanitary certificate, fumigation certificate and a certificate of origin.

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