Food prices remain stable with slight variations in matooke, eggs

Food prices in Kampala and the surrounding areas have remained relatively low, triggered by the recent wave of scattered rains, the continued closure of schools and subdued demand from the hotels and restaurants sector.

Whereas restaurants and other hospitality businesses were re-opened for business in May, stakeholders said they are struggling to operate, with demand for their services currently at only 7%. They said this has left farmers stuck with too much stock, most of which is going to waste, or is simply sold at giveaway prices in most markets around the city.

"We almost have no bookings, restaurants are also working at below capacity and this has a trickle-down effect on the farmers who normally supply us food. ‘‘As long as demand remains subdued, the forces of demand and supply must come into play," said Jean Byamugisha, the Uganda Hotel Owners' Association chief executive officer.

CHANGES IN PRICES

In Nakawa, Owino, Nakasero and Kalerwe markets, prices for harvested food, fi sh, beef, chicken and fruits registered minimal changes compared to last month, with notable changes only recorded in matooke prices.

For instance, a bunch of matooke that cost sh12,000 in June, currently ranges between sh16,000 and sh18,000 in all the four markets, while plantain (gonja) that cost sh40,000 now goes for sh45,000.

A tin of Irish potatoes, on the other hand, ranges between sh6,000 to sh7,000, a small basin of tomatoes goes for sh2,000, a tin of fresh beans costs sh2,000, while that of fresh peas is sold at sh3,000, and a kilogramme of onions goes for sh3,000 Fish prices range between sh15,000 and sh25,000 in all the four markets, while beef goes for sh13,000 a kilogramme and local chicken at sh25,000.

A tray of eggs registered a slight variation in price, jumping from sh8,500 in June to sh11,500 this month. "Demand for the product is still low despite the fact that we have almost fully come out of the lockdown.

People do not have money to spend and schools, as well as big hotels, are not working. So we have to sell our produce at giveaway prices to avoid complete losses," said Musa Ssegawa, a trader at Kalerwe market.

RISING INFLATION

In March, the Government instituted a nationwide lockdown to curtail the spread of the coronavirus, leaving most social and economic activities paralysed, including schools and the hospitality industry. Statistics from the Uganda Bureau of Statistics (UBOS) indicate that annual food inflation for July 2020 registered a 5.8% decline to 1.8 %, compared to 5.0% decline recorded in June.

This was premised on annual vegetable inflation that declined to 0.4% in July, compared to 5.1% recorded at the end of June.

However, annual inflation for fruits, according to UBOS, increased to -13.4 % in July compared to -17.6% in June. Food prices account for the biggest value in the inflation basket. This means if food prices increase, inflation will also increase.

According to UBOS, Jinja registered the highest annual inflation at 5.6% in July, compared to 5.7% in June, on account of increased transport and food prices.

This was closely followed by Kampala at 5.2% in July, compared to 4.0% in June, triggered by high transport fares. High-income food and nonalcoholic beverages inflation shot to 2.5% in July, from 1.5% in June.