RATIN

Why price of rice has skyrocketed

Posted on April, 24, 2023 at 07:15 am


The rice market in Uganda risks running into headwinds. With local rice production spluttering, the market rates of the starchy grain have shot up exponentially.

In Owino market, the price of a kilogramme of Kaiso rice ranges from Shs4,500 to Shs4,800. Kaiso rice is grown in Uganda’s lowlands. Super Mbale, another local grain, goes for anywhere between Shs4,800 and Shs5,000 per kilogramme.

Mr Patrick Umar, a trader in Owino market, told Monitor that rice imported from Tanzania is marginally cheaper than local options. Super Tanzania costs between Shs4,200 and Shs4,500 per kilogramme.

Mr Simon Lutaya, another trader in the market, revealed that they have been grappling with shortages for two years. 

Besides Tanzania, Uganda also imports rice from Pakistan, Vietnam, China and India—all Asian countries. Asia produces a little over 90 percent of the global rice. Whereas Pakistan rice costs Shs5,000 per kilogramme, Basmati rice goes for Shs7,000 per kilogramme
The starchy grain is also a major source of calories for Asians.

Demand for the crop has also been soaring in Africa. In Uganda, rice production has been bolstered with the help of non-state actors such as Japan International Cooperation Agency (JICA).

According to the Agriculture ministry, local rice production in Uganda was estimated at 238,000 metric tonnes in 2019. The ministry’s dataset also put consumption of the starchy grain at 346,309 metric tonnes.

The gap in rice production, the ministry added, had been filled through importation of rice over the years. This soared to the point that imports outstripped the exports, much to the chagrin of local rich farmers.

Globally, rice has in recent times come under attack. A neat link has been drawn between rice-heavy diets and non-communicable diseases like diabetes.

Elsewhere, such is the carbon footprint of rice cultivation that only beef among foodstuff eclipses it as a big source of greenhouse gas.

Millet, which uses a lot less water during cultivation, is drummed up as a more eco-friendly and nutritious option.

Source: The Monitor