Dar wholesale food prices up in May on Increased demand for food in neighboring countries

Tanzania recorded an increase in wholesale prices of major food crops last month as compared with the prices for the preceding month of April 2021 largely associated with increase in demand of food from neighboring countries and expectation of low harvests as a result of delay of short rains.

According to the Bank of Tanzania (BoT) Monthly Economic Review May 2022, on month-to-month basis, prices of selected food crops increased when compared to the preceding month except for round potatoes and beans which decreased by 4 per cent and 0.6 per cent, respectively.

Meanwhile, the food stocks held by the National Food Reserve Agency (NFRA) comprising of maize, paddy and sorghum increased by over 81,000 tonnes to  190,366 tonnes in April 2022 compared with 109,231 tonnes in the corresponding period last year.

According to the BoT Monthly Economic Review May 2022, during the month, NFRA sold 10,256.18 tonnes of maize to grain traders and millers and offered 4.06 tonnes of maize under corporate social responsibility arrangement.

The report noted that food inflation food and nonalcoholic beverages, during May 2022 rose to 6.6 per cent compared with 4.8 percent in April 2021.

“The increase was largely due to low food harvests from short rain season. The inflation rate was also slightly higher compared with 6.5 percent in the preceding month, on account of increase in prices of cooking oil, wheat flour, soft drinks, maize (grains and flour), mineral water and cassava flour,” the report added.