Prices have soared up to 90% after the government harvested maize nationwide as it calls up wholesalers to buy it at BIF 1,080 (around $0, 57) per kilogram amid weak agricultural system.
The ministry of trade, transport, industry and tourism is set to sell maize harvest collected during the agricultural season A from farmers. A kilogram of maize was bought at BIF 680 and it is going to be sold at BIF 1,080.
“The harvest has been collected in 5 centres countrywide aiming at maintaining a national price. We wanted people to sell directly to the government at BIF 680 to avoid those who could tempt them at a less price”, says CapitolineNiyonizigiye, Minister of Trade.
While answering MP’s questions on Wednesday, the 7th of September, she said that the prices have been considered in accordance with Burundian means after a committee analysed the market.
According to her, wholesalers will pay BIF 970 per kg to sell it at BIF 1080 non-negotiable, on their turn.
One kg of maize rose from BIF 680 to BIF 1080 which is an average of 90%. And this is the price at which the consumer will buy, including farmers who basically sold it at the government.
Farmers complained about it, leaving with unanswered questions regarding the prices while the agricultural season B is starting soon.
“We expected the government to be flexible and sell at a fair price but adding BIF 400 is much money”, said Paul Ndayiragije, a farmer in Bubanza province, West of Burundi.
He added that he is not intending to sell his harvest again next year, considering this year’s disappointment.
However, before the government managed the harvest, one kg cost between BIF 300 and BIF400. Then, it gathered all the harvest on the decided price to protect the farmer. “Also, the prices could spike up to BIF 1,600 but the ministry imposed BIF 1080”, said Ndayiragije.
The government of Burundi banned the importation of maize products including grains and flour in March 2021 for six months due to high level of mycotoxines but also because of a successful agricultural season A.
“Regarding the season A production of this crop, the Ministry would like to inform the economic operators that defensive measures have just been taken by prohibiting all imports of corn seeds and flour for a period of six months”, read the statement apart.
In Burundi, the National Development Plan (PND 2018-2027) reveals that agriculture contributes 39.6% to the Gross Domestic Product (GDP) and provides 84% of jobs. It provides 95% of the food supply and is the main supplier of raw materials to the agro-industry.
The 12million country’s population mainly derive their livelihoods from agriculture (more than 90 per cent). The vast majority of the country’s people are small-scale subsistence farmers.
Agriculture accounts for 95% of exports and is therefore the main source of foreign exchange for the country. The cash crops are tea, coffee and cotton. Coffee and tea represent 80% of exports.
The Humanitarian Needs Analysis for the year 2021 (HNO) indicates that nearly 2 million people (15% of the total population) are in need of food security assistance.
Of these, 131,000 are Internally Displaced People, 99,000 are returnees, and 1,768,000 are other vulnerable populations, including host populations and people who have suffered climate shocks but are not displaced. Humanitarian actors are targeting 38 percent (737,000) of those estimated to be in urgent need of food assistance.
