What does the future hold for maize flour prices?

Prices of maize and maize flour are expected to normalise in about two weeks as the price of corn is expected to reduce from Rwf270 to Rwf180. Courtesy.

a Mini-survey across city markets by Business Timesshows that the price of maize flour has been on an upward trend reaching Rwf550- effective last month.

 This had worried a section of the public with most fearing that it could go back to the 2017 price of between Rwf650 to Rwf700.

However, local producers say that the public need not to worry as the situation is set to normalise in about two weeks as the price of corn is expected to reduce from Rwf270 to Rwf180.

The main reason for the increase of input price is the reducing stock and the processing of dried cereals, hence reduced supplies.

Jean Marie Vianney Musonera, Finance Manager of Minimex Ltd, said that the increase of input (corn) price is due to delayed harvesting season leading non-dried produce from farmers.

“First, the old stock is drying out forcing prices to increase from Rwf150 to now Rwf270, second, the recent output from farmers is not yet ready for consumption and processing,” he said.

Meanwhile, as the dry season is expected to continue the undried produce will be ready in the coming weeks which is expected to have a huge impact on pricing, according to Musonera.

“We expect the price of maize to go down as the season continues because currently the only reason why we are not buying the just harvested output is because it is not dried enough which could affect our quality, he said.

According to Cassien Karangwa, Director General of Internal Trade at the Ministry of Trade and Industry, said it will however only be possible to determine the exact trends of the prices on establishing the quantities harvested by farmers.

“The price will be determined in two weeks’ time after harvesting. We plan to hold a meeting soon where we will be able to determine whether to put price cap or not depending on the amount produced by the farmers,”  Karangwa said.