By Mugenyi Joseph
Kibiito,Bunyangabu: When Kyadondo East MP Hon.Ssentamu Robert Kyagulanyi aka Bobi wine was arrested few days back, food prices in up country markets generally lowered because Kampala traders were unable to go up country for purchases because of the uncertainties that hovered over their purchasing appetite,for they didn’t know whether they would be able to sale the same in ‘a burning’ Kampala.
This has affected their businesses and they were unable to go for purchases due to the low market and previous losses made.
When the number of traders decreases in any market day, there is a possibility of prices lowering,because there will be more willing sellers [goods] than willing buyers.
Most markets in Bunyangabu district like Kibiito, Nyakigumba, Rwimi, Kasunganyanja and Ruboona had a reduced number of traders from Kampala and it’s these traders that buy most of the agricultural produce.
In economics we say that `supply has exceeded demand’, causing price lowering.
Many farmers were seen stranded with their food stuff from mourning to evening with very few buyers in the market, they reached an extent of giving their products to trusted traders on credit instead of making a double loss of transporting them back home and some would get damaged in the process.
Previously banana prices had highly increased ranging from 10,000|=-35,000|= in rural areas but now it’s between 5,000|=-15,000|=.
Farmers can’t stop taking their products to the market because agriculture is their major source of income and fresh foods can’t be kept for long, May be if we had processing industries, they could have played a big role, or even national granaries.
However, a few smart Kampala traders have taken advantage of this situation hence making abnormal profits because products are bought cheaply, those that maneuvered and took the bull y its horn! In every business, there are those traders who are called ‘risk takers’. Sometimes they pay the highest price, though sometimes they truly go through the tunnel and make abnormal profits by taking risk.
But however much they are making more profits, they were also seen stranded with few trucks coming to transport their products.
Realizing there are few trucks, the cost of transportation also increased, each bunch of banana was now being transported at Shs. 3,000-3,500, yet previously it was between shs.2,000-2,500.
A full sack is now transported at shs.13,000 -15,000 yet previously it was shs.8,000 -12,000 etc. This has really affected the farmers and traders, with so many guessing.
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Mugenyi Joseph (MJ Farmer) is a practicing Agribusiness entrepreneur based in Kibiito and a software Engineering student at Makerere University. He can be reached on 0701-443309, Email: firstname.lastname@example.org