Vegetable prices will remain high in April despite the onset of long rain season, according to a Central Bank of Kenya survey.
The CBK Agriculture Study of March 2023 notes that mixed trends have been observed in the retail markets with prices of cereals, grains and their end products expected to either decline or remain unchanged in April.
This, the study observes will be due to increased supply of food items, mainly maize, rice and wheat that are expected to increase in the coming months supported by recent harvests, the long rains season and the arrival of the delayed duty free imports.
“Retail prices of some vegetables were expected to increase but prices of non-vegetables (including cereals, grain products and cooking oil) and animal products were expected to decline or remain unchanged in April 2023,” reads the report in part.
The survey sought to establish changes in prices of key agricultural commodities between January and March 2023.
The analysis of retail prices between January and March 2023 revealed an increase in prices of most agricultural commodities.
Vegetable prices increased in March following the prolonged dry weather conditions and high transport costs associated with distant purchase outlets.
Weather conditions, transport costs and input prices are the main factors driving prices in the Retail and Wholesale markets.
“Tomato farmers in Gilgil and Naivasha markets for example revealed that supplies from the main source markets in Subukia had dried up and they had to travel to Kirinyaga which was costlier,” reads the report.
The prices of wheat, loose maize and milk however moderated in March 2023 relative to January 2023 following the recent harvests and the previous short rains that increased pasture as well as the easing of supply chain constraints in international markets.
The price of milk was expected to decline with expected improved supply if the on-going long rains are sustained.
The March 17 gazette notice where the government allowed animal feed manufacturers to import 500,000 tonnes of yellow maize duty-free before August 6, 2023 would also boost this.
