Wednesday, August 4, 2021
business

Shortage of supply, insecurity pushes food prices higher in Lagos markets

The prices of major food items in Lagos markets continue to maintain an upward trajectory, as traders attribute the surge to the destruction of farm products caused by floods and the problem of insecurity in the northern parts of the country.

This is according to the latest market survey, carried out by Nairalytics Research – the research arm of Nairametrics.

According to the report, a big bag of white garri that was initially sold for an average price of N16,600 rose by 34% to sell for an average of N25,375. Also, the price of a big basket of round-shaped tomatoes increased by 27% to sell for an average of N40,000 as against an initial average of N29,333.

Similarly, a 50kg bag of Mama Gold rice rose by 7% in the last two weeks as it currently sells for an average price of N25,500 compared to its initial average price of N23,667. Meanwhile, the price of a 50kg bag of Caprice, reduced by 2% to sell for an average of N24,500.

Trustfund Pensions Limited
This report contains information on items that witnessed price increase, price decrease, as well as information on special markets and market insights.

Items that witnessed price increase
A 50 kg bag of white garri that was initially sold for an average of N16,600 now sells for an average of N25,375, representing an increase of 34.3%. Also, the 50 kg bag of yellow garri is up by 32.3% from an average price of N17,000 to N17,500.
The price of a 5 litre gallon of locally made palm oil rose by 6% to sell for an average of N3,550, while the 25 litres gallon increased by 5.2% from N18,375 to sell for an average of N19,375.
Also, the price of a 25 litres gallon of vegetable oil increased by 6.5% to sell for an average of N22,375 compared to an initial average price of N20,900 while a 5 litres gallon currently sells for an average of N4,500.
A big bag of dry onions that was sold for an average of N25,000 two weeks ago, witnessed a further increase of 9% to sell for an average of N27,300.
A 50 kg bag of Dangote Flour recorded a slight increase of 1% in price to sell for an average of N16,000 compared to an initial average price of N15,900. While Honeywell flour went up by 9% to sell for an average of N17,000 and Mama Gold currently sells for an average of N16,150 indicating an increase of 4% from the initial average price of N15,400.
The 50kg bag of Royal Stallion Rice that was sold for an average of N23,300 is now sold for an average of N25,600, signifying an increase of 9%. The Mama Gold brand of 50kg rice also increased by 7% to sell for an average of N25,500 compared to an initial average of N23,600 recorded a fortnight ago.
A big-sized tuber of Abuja yam went up by 3% to sell for an average of N1,300 compared to N1,270 recorded two weeks ago.
A big basket of round shaped tomatoes currently sells for an average of N40,000. A 27% increase, when compared to an average of N19,300 recorded two weeks ago.
The price of a medium-sized basket of round shaped tomatoes also surged by 23% to sell for an average of N17,500 up from N15,500.
The price of a big basket of oval-shaped tomatoes is up by 3% from N22,000 to N22,600.
A carton of chicken lap increased slightly by 1% and is now sold at an average of N17,000 against an initial average of N16,750 while a carton of turkey is up by 4% currently being sold at an average price of N20,000.
A crate of eggs that was initially sold for an average of N1,550 now sells for an average of N1,580 indicating a 2% increase in price.
Also, the price of a 500g pack of Golden Penny pasta has increased by 5% to sell for an average of N5,250 as against the initial average price of N4,975. While a 500g pack of Dangote pasta now sells for an average of N4,900 indicating an increase of 3% from the initial price of N4,750.
A nylon of crayfish recorded a marginal increase of 1% from N11,750 as at two weeks ago and is now selling for N11,800.
Items that witnessed price decrease
A 10kg bag of mama gold rice which was sold for an average price of N4,500 in the previous month now sells for an average of N4,367.
A 50kg bag of caprice declined by 2% from an initial average price of N25,000 recorded in the previous month to an average price of N24,500.
A small basket of oval-shaped tomatoes declined by 4% from an initial average price of N6,000 to sell at an average price of N5,750.
A big bag of pepper also declined by 30% to sell for an average price of N20,333 as against an initial average price of N25,000 while that of a medium bag of pepper also declined by 85% to sell for an average price of N9,750 as against an initial average price of N18,000.
A big bag of yellow maize which was sold for an average price of N32,000 in the previous month now sells for an average of N26,667 while that of the white maize now sells for an average of N25,500 from an initial average price of N29,500.
A big bag of melon also declined by 12% from an initial average of N61,500 to sell at an average price of N55,000.
A big bag of bush mango seed (ogbono) now sells for an average of N90,000 compared to an initial average price of N100,000.
Other items that recorded a decline in price include full chicken, plantain, 1kg of Kote fish, cocoa beverages, milk, and medium size of Abuja yam.
Items that maintained initial prices
A refill of 12.5kg and 5kg of household cooking gas continues to sell for an average of N4,600 and N1,800 respectively.
A Cway refill dispenser bottle of water still sells for N600
Also, a 1kg tin of milo still maintains its initial price at N2,550
Amongst the list of food items that maintained their initial prices include: Indomie noodles (hungry man), beverages, cocoa drinks and bread.
Special markets/items
Onions
The price of onions also increased by 10% to sell at an average price of N27,333 in the month of July but the prices still remain unstable.

Nairametrics observed that there was a huge influx of the supply of onions, particularly the dry onions at the mile 12 market. Mr Lastborn, an onion dealer disclosed that while the price of onions keeps fluctuating with no specific cause attributed to it, if there are no impediments to the current level of supply as seen in the past few days the price is likely to drop steadily.

At Mushin market, an onion trader named Mallam Musa said, “Although the price of onion is now N27,000, the price is still very unstable as it might increase any moment from now.”

Another onion trader at Daleko Market also noted that the price of onion is still unstable as there is a high possibility of an increase in price due to the upcoming festive season known as Ileya as it would ram that traders would be transporting from the North to the South which will then affect the supply of onions. After the festive season, there might be a reduction in price.

Tomatoes
The price of a basket of round-shaped tomatoes surged by 40% while that of the oval-shaped tomatoes surged by 3% across markets in Lagos in the first week of July. A trader named Iya Barakat at the Mushin market attributed the increase in the price of tomatoes to a shortage in supply caused by the season and insecurity in the country.

She noted that the persistent rainfall in the North is destroying the harvested round-shaped tomatoes, making the food item expensive as tomatoes are better harvested during harmattan season. She also attributed the supply shortage of the oval-shaped tomatoes to farmers no longer going to their farms because of the fear of being killed by the herdsman.

Meanwhile, tomato dealers at mile 12 market wailed about the shortage in supply of tomatoes from the North which has caused the price of the food item to continue rising.

Konga
Pepper
Although the price of pepper declined by 30% to sell at an average price of N20,333 across markets in Lagos State, there’s a high possibility of an increase in the price of pepper due to supply shortage which is caused by insecurity in the country.

Iya Bolu, a pepper trader at the Daleko market said, “the Yoruba pepper is now the major type in the market as northern pepper is out of season but there’s a shortage in the supply of the pepper as farmers are no longer bringing pepper to the market. Why? It’s because of insecurity in the country.”

They are simply afraid of their lives to go out and farm as they might be killed while farming. If this continues, the prices of pepper will increase as a result of the shortage in supply.” She also attributed the increase in price to the season as she said, “this is not the season to expect goods to be in abundance.”

Market insights
The price of beans especially white and brown beans continues to maintain its increase. Iya Sukura a trader at Daleko market attributed that to the insecurity in the land. She said, “the incessant increase in the price of beans is a result of the insecurity in the land as the constant attacks on farmers are reducing the supply of beans to the market.”

Jaiz bank
Nairametrics research team reports that prices in the markets are still unstable as most traders claim that the goods, they have now are new stock. Therefore, the prices are high now and there might be an increase or a decrease in price tomorrow.

A chat with Mr Kelechi, a dealer in the market explained that the reduction in the price of melon by 12% is due to the fact that its supply has recently improved as the rainy season is always favourable to melon harvest.

Leave a Reply

GIPHY App Key not set. Please check settings

995 Comments