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East Africa

Prices of coarse grains at new record highs in the Sudan and at near-record levels in South Sudan

13/11/2024

Prices of coarse grains followed mixed trends in September and October 2024 in the subregion. In September, prices reached new record highs in the Sudan, while in South Sudan they slightly eased in October from the record levels reached in September. Prices continue to be underpinned by tight supplies and severe macroeconomic difficulties, including currency weakness. In the Sudan, they are further supported by a sharply reduced domestic availability and disruptions to trading activities as a result of the conflict that started on 15 April 2023.

 

In the Sudan, retail prices of domestically produced sorghum and millet reached new record highs in September. Prices continue to be underpinned by the impact of the ongoing conflict, which resulted in a sharply reduced domestic availability, high input prices inflating production costs and trade disruptions, against a backdrop of already elevated prices due to macroeconomic challenges. Prices of sorghum and millet in September were on average six and more than seven times, respectively, their pre-conflict levels in March 2023. In South Sudan, retail prices of maize and sorghum slightly eased in October from the record levels reached in September in the capital, Juba, as the exchange rate moderately appreciated on the parallel market. In Juba, prices of sorghum and maize in October, were more than twice their already high year-earlier values due to tight supplies, reduced oil exports worsening the existing macroeconomic difficulties and flood-related trade disruptions. In Somalia, retail prices of maize declined month-on-month in September in several markets with the off-season harvest, recently gathered in riverine areas of Shabelle Valley, while prices of sorghum remained mostly stable. Year-on-year price changes in September followed mixed trends, driven by local supply/demand dynamics. In Ethiopia, retail prices of maize followed mixed trends in September. In Bahirdar, Mekele and Shashemene markets, located in surplus producing areas, prices levelled off as traders released their stocks in advance of the main Meher harvest, gathered between October and December, and were 10 to 20 percent lower than their year‑earlier levels. By contrast, in the capital, Addis Ababa, and in Diredawa markets, both located in deficit areas, prices seasonally increased by 5 to 10 percent in September, when they were 15 to 25 percent higher than one year earlier due to sustained local demand coupled with a weak national currency, inflating fuel prices and transport costs. In Rwanda, retail prices of maize continued to increase, following seasonal trends in October, when they were 5 to 20 percent below their year-earlier levels due to adequate carryover stocks. In Kenya, wholesale prices of maize began to seasonally increase in October, rising by 3 to 5 percent month-on-month, but remained 17 percent lower year-on-year due to adequate domestic availability and sustained maize imports from Uganda and the United Republic of Tanzania. Similarly, in Uganda, retail prices of maize began to increase in September following seasonal pattens, rising by about 4 percent month-on-month. Prices in September remained at low levels, about 30 percent lower year-on-year, due to adequate carryover stocks. In the United Republic of Tanzania, wholesale prices of maize remained stable at low levels in September, due to adequate domestic availability.