Saturday 26 May 2012

May 29: Food prices soar by 300% …as purchasing power gets weaker

Foodstuffs  on display at Oyingbo Market, Lagos... on Tuesday

Hello Friends!


 
For the umpteenth time, the prices of food items have gone through the roof, investigations by SATURDAY PUNCH at major food markets in Lagos have shown.

The cost of importation, national insecurity, global climatic change, partial removal of fuel subsidy and lack of a thriving food policy are partly responsible for the current trend.

But one year into the Goodluck Jonathan Administration, the prices of almost all food items have tripled, making it more difficult for the poor to cope.

Currently, Nigeria spends a significant amount on the importation of wheat and rice among other food commodities, and rightly qualifies to be named an import dependent country in this respect.

Although Jonathan had indicated his intention to stop the importation of some staple foods, including rice and sugar by 2015, public opinion seeks to know what survival strategies would be put in place to forestall a scarcity.

A survey conducted in three major food markets in Lagos showed that prices of most of the food items had risen by over 300 per cent above the prices at which they were sold earlier this year.

At Oyingbo Market, notable as a wholesale and direct farm-to-market food centre, one of our correspondents found that patronage was poor, yet prices were unbearable.

The situation left the buyers lacking the sufficient purchasing power, while the sellers had meagre returns on investment.

It was found that comparing the prices to this time last year would be more heart-rending for the public, because the within-the-year rate of increase is worrisome.

At Oyingbo, a basket of Derica-brand of fresh tomatoes now sells at N14,000 as against N3,500-N4,000 at which it sold till March ending.

 The small portion for family cooking, which used to sell for N100 now sells for N300 in the market and even N400 in some other places.

Some traders let SATURDAY PUNCH into the causes of the all time high prices.

Umaru Autah said the changes in prices of tomatoes and other types of pepper were not unusual.

He said it was an annual ritual following the rainy and dry seasons.

He said the type of tomatoes grown in Kano, Katsina and Gombe states were planted using irrigation; so, whenever the rains come, it becomes scarce because the farmers will not plant until the rains had gone.

“The tomatoes grown in April in the West are planted during the rainy season and they will soon be harvested between June and July, while the type planted in the North around September will soon be totally unavailable until harvest time around December to January. The prices of pepper and tomatoes will still go up more than this, until the other type is being harvested,” said Autah.

People who prefer yams planted in Benue and Abuja can testify that the prices have also gone up.

Earlier in the year, one moderate tuber sold for N150, but the smallest tuber of that species now costs between N350 and N400.

There are other species grown in the East and West, which are currently a bit cheaper. It was learnt that the difference has to do with the different planting seasons.

At the rice section of the market, it was found that a bag of rice currently costs between N9,000 and N12,000 depending on the brand.

Rice is mainly imported into Nigeria as the quantity of the locally grown species cannot take care of the population of rice eaters.

The price of the staple food rose by 200 per cent between January and April.

Autah added that the increase in price had been attributed to the reported flood in Thailand and Brazil, which are major rice markets for Nigeria.

“It sold at N7,000 earlier this year. Foreign exchange has also taken a toll on the rate at which the price rose,” said Chukwu, a rice seller.

A meat seller, Mukaila, said he and three others were buying one cow at N150,000 about six months ago, but the same size of cow now sells at N200,000.

Apart from that, he said the rate of exchange of the naira to the Nigerien currency also accounted for the high cost of cows.

The prices of virtually every other food item and condiments have increased.

Ten pieces of dried Maiduguri fish that used to cost N700 in November now sells at between N1,000 and N1,500, depending on the size.

A moderate bunch of plantain, which was sold at N1,500 two months ago, now sells for N3,000.

Mama Ramotalai told SATURDAY PUNCH that she sells plantain brought in from Ife, Ondo and Benin and that the season is currently not right for it.

“We have been experiencing swings in the season of plantation and harvesting but this year’s is worse. We hear the farmers are capitalising on the removal of the subsidy on fuel to increase their prices.

“The current challenge with plantain (ripe or unripe) is that it has become expensive right from the farm, the season notwithstanding,” she said.

At the Mile 12 Market, SATURDAY PUNCH investigations showed that the high cost of food items was occasioned by fluctuations in weather and the security threat in the North.

A trader in tomatoes, who identified himself as Adamu, said, “A basket of tomatoes and pepper now sells for N15,000 each. This is double the previous price. Although it has never really been this bad, it is the sudden change in weather that is responsible for this. At this time in the North when tomatoes and pepper are usually harvested, the rains are yet to start.

“This year, it is different. The rains have already begun in the North and it is ruining the tomatoes that are ripe for picking.”

The high cost of tomatoes and pepper is said to have also negatively affected the price of beans. A bag of beans is now said to go for N27,000, while a bag of rice now goes for N10,000.

Explaining the increase in the price of beans, another trader, who identified himself as Bolaji Balogun, said, “Majority of these foodstuffs come from the North and we all know that the current situation in the North is not friendly. Those who are still struggling to continue their business despite the present circumstances are doing so at a great risk. I guess that is the reason for the current hike in food prices.”

The only food item seemingly unaffected by this upward trend is said to be onions, which go for N4,000 or N4,500 per bag.

Even food items which are supposed to be in season such as okra and yam have fared no better in the price hike. A basket of okra is said to cost between N12,000 and N13,000 while a large tuber of yam is said to cost N300.

A parent, Mrs. Sola Adesanya, who was at the Mile 12 Market to purchase food items, complained bitterly to SATURDAY PUNCH about the price hike.
She said, “The rate at which food prices are going up everyday, the possibility of affording two square meals a day might soon become a thing of the past for most Nigerians.

“I spend so much weekly on food items for my family, but take away so little from the market.”
 The story is not any different at Ile Epo Market on the Lagos-Abeokuta Expressway.

The prices of foodstuffs have gone up so high that most people wondered how they would cope, if they didn’t come down soon.

Ile Epo, which is known as a depot for fresh tomatoes, earlier in the week, could not boast the usual crowd that used to storm the market to buy the commodity.
Explaining the reason behind the recent development, a tomatoes trader, who is known as Mama Kemi, said fresh tomatoes were no longer affordable.

Mama Kemi said the price of a basket of tomatoes, which used to be N4,000 had gone up to N11,000.

“With that kind of price, you don’t expect to see many people to continue to trade in tomatoes. For those of us who sell retail, we cannot make any gain. Nobody would agree to buy three or four pieces of tomatoes for N500. But if we don’t sell it like that, we would be at a loss. We don’t know what is happening. We don’t know whether it is as a result of Boko Haram that the price of tomatoes went up,” she said.

But Aminu, a Kano State-born tomatoes trader, claimed the high cost of tomatoes didn’t have anything to do with the Islamic sect.
 Aminu said the price went up because of the rains, which have been disturbing the farmers in the North.

“This is not the first time it is happening. Usually, during the rainy season, the price of tomatoes goes up. It is nothing new. In fact, it has even come down. Last week, I sold a basket of tomatoes for N17,000. People still bought it. It is not our fault. It is not Boko Haram, we should blame the rains for the price increase,” Aminu said.

A bag of rice, which sold for N8,000 in December, has gone up to between N9,000 and N12,000, depending on the brand.

However, Sylvester Uko, a rice trader at Ile Epo Market, said people had got used to the difference.
“I am not sure a lot of people noticed that the price of rice has gone up. What can they do? Will they go hungry? It is not our fault anyway. Maybe if there is a ban on foreign rice, people might get used to eating our local rice,” he said.

Apart from rice, Uko said that the price of beans also went up a little bit.

“Now, a bag of beans is N22,500. It just went up with N500. Retailers might not even notice it because a ‘derica’ cup of beans still goes for N100,” he said.
 At Ile Epo, SATURDAY PUNCH findings showed that some food items, including groundnut and palm oil have not been affected.

Mrs. Bola Akintola, who sells groundnut and palm oil, said there hadn’t been any increase in the items.
 “A five-litre can of palm oil is N1,000 and that of groundnut oil is N1,500. This has been the price since last year. It hasn’t changed,” she said.

Oxfam, a global development organisation against poverty, had warned in its 2011 report entitled, “Growing a Better Future,” that the prices of staple foods would more than double in 20 years unless world leaders took an action to reform the global food system.

Culled from The Punch.

xoxo
Simply Cheska...

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