Consumers to reap big as food prices expected to decline

Share it

4

The market prices for food is expected to decline  in the coming months, something  that  is likely to  help consumers save  money from the total  cost   for their  household   food basket.

Traders say there are indications that food prices are likely to go down considering the recent fall in supply price   as well as theexpected highsupply from farmers due to good season last year.

“There is  good supply  from  farmers and suppliers  are reducing  the price  which  also helps  us to reduce  price  for  consumers,”  Annet Uwamahoro, a  trader  in Kimironko  said

If  supply  from farmers  continues  to  increase, traders say  will automatically bring down the consumer  price  for food   which will help   consumers  buy more for their food basket.

Already,   prices of some of the foods have started to decline, for example Irish potatoes declined from Rwf 200 in October  last  year to Rwf 180 in November before  going down to  Rwf 170- Rwf 150 this year, attributed to  favorite  supply   from the last  year’s season.

While Bananasalso registereddecline and expected to decline further, withbeans and Maize as well as cassava that sawa better season are also expected to decline   in the next three months.

Vegetables   which registered a decline in the last three months of last year are expected to fall further if the harvests become favorable in the first season of this year.

On the   other hand  the weakening shillings in the neighboring   countries   mainly  in Uganda  is also likely to   contribute to  favorable  prices of food  mainly  fruits that include watermelons, passion fruits  among others.

“This means that   Rwandans will be buying more food with the same amount theyare currently buying, so the forces of demand and   supply will push the   consumer price down,” said Davis Mukiza Agri business consultant.

The Ministry  of trade and industry   recently announced  the reduction  in fuel  prices  which  experts  say  would also  among   the market  forces of demand and  supply  bring  down   food prices thus contributing to  a positive economic  outlook  for   2015.

The shilling was trading in the regions of 2823/2830- the highest it has traded since late 2011 when it traded in the regions of 2900.

Tags:

 

About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

More posts by | Visit the site of Ndaka

 

0 Comments

You can be the first one to leave a comment.

Leave a Comment

 




 

 
 

Warning: Illegal string offset 'id' in /home/wp_ts2em7/rwandaeye.com/wp-content/themes/manifesto/footer.php on line 4

Warning: Illegal string offset 'id' in /home/wp_ts2em7/rwandaeye.com/wp-content/themes/manifesto/footer.php on line 4

Warning: Illegal string offset 'id' in /home/wp_ts2em7/rwandaeye.com/wp-content/themes/manifesto/footer.php on line 4