Rice prices drop as supply rises

CHRISTINA MSEJA

PRICE of rice at selected markets in Dar es Salaam has gone down between 10 and 15 per cent, thanks to fresh supply coming after a new harvest season.

The ‘Daily News’ spot survey at local markets established that rice prices have dropped from highest point between 2,000/- and 2,500/- to 1,800/- high grade and 1,500/- per kilogramme for the lower grade.

Kisutu Market Secretary Makwengwa told the ‘Daily News’ upcountry rice dealers have lowered the prices following a glut due to harvest season. “This has helped to lower rice price since there is enough supply,” Mr Makwengwa said.

In January, rice prices went as high as 2,100/- Kisutu ‘Soko Mjinga’ to push price at various local shops to 2,500/- a kg. However, prices started to make a u-turn in June, when some parts of the country started to harvest.

The harvest assisted to suppress inflation to 5.4 per cent in June from 6.1 per cent in May, since rice is now most consumed staple food in the country. The inflation was the lowest in five months.

Mr Makwengwa said rice is the most cereal purchased in retail market at Kisutu due to high demand from customers. The Kisutu market at Dar central business centre, receives rice mostly supply from Mbeya, which has high demand and Shinyanga and Morogoro.

Rice is Tanzania’s seventh most important crop and its production has steadily increased over the past decade. Tanzania’s rice production levels are the second highest in Africa, after Madagascar.