2023-04-20 14:19:27
For a few days, the prices of rice and corn grains have been falling on the various markets of the economic capital Bujumbura. For some, it is the measure of the ministry in charge of finance that is beginning to bear fruit, for others it is just because this is the period when these two products are in abundance.
“the drop in prices for rice and corn grains has nothing to do with the measure of the ministry having finance in its attributions”.
The prices of most products recently exempted from the ad valorem tax of 1.5% of the customs value remained the same in Bujumbura markets. Compared to previous days, only rice and corn kernels are the only products in this category whose prices have fallen. While the cheapest rice was bought at 4000 FBu per kilo 2 weeks ago, today the kilo is at 3300 FBu. A kilo of maize grains that used to sell for 2200 FBu is today at 1800 FBu.
When we went to the Ngagara II market called “cotebu” on the morning of this Wednesday, April 19, 2023, one kilo of cassava flour called Ikivunde was bought between 2800 FBu and 3800 FBu. A kilo of locally produced maize flour was 2600 FBu. In the case of sugar, it’s downright a shortage. Instead of falling, the price of sugar keeps rising and the price can go up to 3000 FBu instead of the official 2500 FBu. And, of course, at the few merchants who still sell them.
Rather a mere coincidence?
According to the sellers of these commodities met in their workplaces, the drop in prices for rice and corn grains has nothing to do with the measure of the ministry having finance in its attributions. According to Eric Niyomukiza, it is rather the law of supply and demand that applies and nothing less. “In a period of abundance of a product, its price is automatically revised downwards. This is the case for maize grains and rice. The proof is that this reduction only concerns these two products, whereas seven have been exempted, ”he says.
As he explains, the recent measure to exempt certain foodstuffs from the ad valorem tax of 1.5% of the customs value has had no impact on the prices of these. For him, as long as there is a shortage of foreign currency, there will always be high food prices. However, he is concerned regarding the sustainability of this price drop as local agricultural production normally does not last long. He fears that before long, these prices might increase even for these two products.
Lower prices compared to when?
Despite the fall in the price of these two foodstuffs, the consumers we met regret that prices are still on the rise compared to the same period in previous years. This puts consumers at a disadvantage as these products are staple foods for most city dwellers.
Recall that the measure to exempt from the ad valorem tax of 1.5% of the customs value for certain foodstuffs comes from the press release made public on March 30, 2023 by the ministry having finance in its attributions. The products affected by this measure are dry beans, rice, cassava and corn flour, sugar, cassava and corn grains.
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