Why maize flour prices are going up

Are you a lover of maize meal? Or do you enjoy that hot and refreshing cup of porridge? Well, you will have to dig deeper into your pockets following increase in maize flour prices over the past few weeks countrywide. According to a mini-survey by The New Times, prices of various brands of locally-produced maize flour, including Gashumba, Iraboneye and Shekinah, have increased greatly. A 10-kilogramme bag of the Gashumba brand currently costs Rwf7,000, from Rwf5,000 previously, while that of 25kg is at Rwf17,000 compared to Rwf13,500 two weeks ago. Those who like Iraboneye brand pay Rwf500 less as the 10kg bag goes for Rwf6,500, up from Rwf5,000 and Rwf15,500 for a 25kg bag, an increase from Rwf13,000. However, prices for maize flour imported from Uganda rose by a smaller margin with a 10-kilogramme bag at Rwf5,700, from Rwf4,000, while one will part with Rwf13,500 to buy a 25-kilogramme bag of maize flour compared to Rwf12,000 about two week ago. A kilo of maize is now at Rwf350 in many parts of the country, from Rwf150 previously. The increases will affect many low-income earners as maize meal is one of the main diets in many Rwandan households. Evariste Tugirinshuti, the president of the Maize Millers Association in Rwanda, attributed the increase to poor production due to the recent prolonged dry spell. “Maize output during the last crop year was only 93,800 tonnes of maize, which was lower than the same period the previous year when 103,640 tonnes were realised. Therefore, the low maize production in the country has been outstripped by demand leading to the current increase in prices of maize products,” Tugirinshuti explained. He said that the 115 co-operatives of maize millers in the country require 100,000 tonnes of maize to operate smoothly. According to Oliva Mukantwari, a maize flour wholesaler at Nyamirambo, the scarcity has negatively affected all citizens, including millers, traders and buyers. “Most people have reduced on the quantities of maize flour they used to buy previously and have switched to relatively cheaper foodstuff. The development has also affected our sales,” Mukantwali said. According to the National Institute of Statistics of Rwanda (NISR), the country’s inflation rate rose to 6.4 per cent year-on-year in November, driven by a 13.5 per cent increase in the prices of food and non-alcoholic beverages. Maize millers react Most of the maize in the country comes from the Eastern Province. The province contributed 53,600 tonnes to the country maize output last season, which is a reduction from 59,630 tonnes harvested during the same period in 2015. Isaie Hakizimana, a maize miller belonging to COACMU Co-operative in Musaza Sector, Kirehe District, said the crop in the district was destroyed by the prolonged drought, leading to lower-than-expected maize yields last season. Clarissa Mukobwajana, a miller with KOKAWOKI Co-operative in Nyarubaka Sector, Kamonyi District in the Southern Province, said the crop in the district was affected by multiple challenges, including drought and disease. “Much as there was a dry spell and later heavy rains last season, in Kamonyi the maize plantations were attacked by maize mosaic disease, which left many farmers counting losses,” she said. ***** CONSUMERS SPEAK OUT Anthony Mugunga, a university student University students from humble background depend on maize meal, so it is going to be tough going forward. The increase in prices will also affect maize millers as people switch to other foodstuffs. -- Fatuma Shiragahinda, a resident of Gitega, Kigali Maize flour is mainly used by the majority of poor families because it is more affordable compared to other foodstuff. Therefore, those who depend on it and cannot afford other foodstuff will have no choice but reduce on their daily meals.

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Why maize flour prices are going up