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East Africa

Prices of coarse grains at new record high levels in South Sudan and the Sudan

11/06/2024

Prices of coarse grains followed mixed trends in recent months in the subregion. Prices reached new record highs in South Sudan and the Sudan, underpinned by tight supplies and severe macroeconomic difficulties, including currency weakness. In the Sudan, prices are further supported by a sharply reduced cereal production in 2023 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 continued to increase in April 2024, reaching new record highs. Prices are underpinned by the impact of the ongoing conflict, which resulted in a below-average cereal production in 2023, 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 more than doubled between March 2023, immediately before the conflict broke out, and April 2024. In South Sudan, retail prices of maize and sorghum resumed their upward trend in May in the capital, Juba, after having eased in April. Prices increased in May following a further significant depreciation of the national currency caused by reduced oil exports. Prices of sorghum and maize in May were about twice their already high year-earlier values and at record levels due to tight supplies and macroeconomic difficulties. In Somalia, retail prices of sorghum and maize followed mixed trends in April, but remained around or below their year-earlier levels in most markets, due to a higher coarse grains production in 2023 compared to 2022, with food assistance exerting further downward pressure. In Ethiopia, retail prices of maize levelled off or declined in April as traders released their stocks in advance of the secondary Belg harvest, to be gathered in June and July. Prices in April were up to 50 percent higher year-on-year, mainly due to the continuous depreciation of the national currency, which increased the prices of imported fuel and agricultural inputs. Localized production shortfalls caused by dry weather conditions and conflict related trade disruptions in some areas provided further support to the year-on-year higher prices. In Rwanda, retail prices of maize remained mostly stable in May, when they were between 25 and 35 percent, respectively, lower than their year-earlier values, due to adequate domestic availabilities. In Kenya, wholesale prices of maize continued to seasonally decrease in May as the secondary short-rains season harvest, gathered in February, increased market availability. Prices in May were lower than their year-earlier levels due to an increased production in 2023 compared to 2022.  Similarly, in Burundi, retail prices of maize continued to decline in April, when they were between 5 and 25 percent lower than one year earlier, due to adequate carryover stocks.