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

12/07/2024

Prices of coarse grains followed mixed trends in May and June 2024 in the subregion. Prices reached new record highs in the Sudan, while they firmed up at record levels in South 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 May 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 in May were almost three times their pre-conflict levels, in March 2023. In South Sudan, retail prices of maize and sorghum firmed up in June in the capital, Juba, after having increased to new record highs in May. Prices of sorghum and maize in June were about 60 to 90 percent above their already high year-earlier values and at record levels due to tight supplies, macroeconomic difficulties and, more recently, reduced oil exports. In Somalia, retail prices of sorghum and maize followed mixed trends in May, 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 followed mixed trends in May, when they were up to 30 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 and Burundi, retail prices of maize unseasonally increased in June, as the ongoing 2024B harvest was affected in both countries by production shortfalls due to erratic weather conditions. Prices in May, however, remained well below their year-earlier values, due to adequate carryover stocks. In Kenya, wholesale prices of maize followed mixed trends in June, but remained between 24 and 56 percent lower than one year earlier, due to adequate domestic availability. In Uganda, retail prices of maize eased by 3 percent in June after having seasonally increased in recent months, as the first season harvest, currently ongoing, increased market availability. Prices in June were almost 50 percent lower year-on-year, due to adequate carryover stocks.