A combination of high prices and freight rates have driven up the cost of wheat products in Rwanda to soar to an all time high.
The skyrocketing prices have left bread makers in Kigali scared, with some claiming they are almost closing businesses due to low demand of bread and high cost of wheat.
To feed part of her population, Rwanda depends on imported wheat floor from Uganda, France and Belgium.
“As for now we are having only three tracks supplying our products. The rest are packed because we are making losses. Bread demand allover the country has declined due high prices,” Emmanuel Ndekezi an employee at Dali Bread Bakery said.
He added that a sack of wheat floor that used to cost Frw13,000 five months ago currently is at Frw32,000—a 146 per cent price increase.
Bernard Karenzi, a retailer at Remera says, “Suppliers add Frw50 on every kilogramme of wheat floor monthly since September.”
The price increase being experienced in Rwanda comes at a time international wheat prices have been rising since November due low stock levels.
Online publications report that French and UK wheat prices increased 15 percent to post price gains of $26 and $27 per tonne, respectively, as buyers fought over scarce supplies.
Argentine Trigo Pan rose $18 a tonne for November, while Australian Standard White gained $10 a tonne and Canadian Spring $17. Russian wheat prices rose by about 17 percent or $12 a tonne, as supplies became even tighter due to exports to neighboring countries