Improved Supply Brings Down Prices Of Guinea Corn

With the onset of its season of harvest, prices of Guinea corn which started declining in June this year, reduced further during the review week.

The commodity, a staple food which serves as a multi-purpose meal is mostly consumed by the elderly and children because of its nutritional value.

Many of the traders increased their purchases due to improved patronage and reduction in prices.

During the week, findings from a market survey by the Business and Market Intelligence Unit of DAILY INDEPENDENT revealed that prices of guinea corn fell by between 5 and 10 per cent in some markets between July and November 2, 2018.

Reasons for the drop as indicated by the survey results were due to seasonal factors, improved supply, low demand and lack of purchasing power.

Checks at the Ogeogologo and Igbudu markets, Delta State, showed that prices of a 100kg bag of guinea corn earlier sold for N20,000 dropped to between N17,000 and N18,000  representing a 15 or 11 per cent decrease.

Chukwuobi Sunday who trades in the commodity at the Ogbeogologo Market, Asaba, attributed the drop to on-season effect and increased supply from its major sources.

That of Nkwo Market, Nnewi, Anambra State, however, did not witness decline but had remained stable at N20,000 since July, a situation which most of the traders ascribed to high cost of logistics and inadequate supply.

For that of Umuahia Main Market, Abia State, prices of a 100kg bag of guinea corn were still high, despite decreasing to between N17,500 and N18,500  from N20,000  sold initially.

Many of the traders also linked the situation to high cost of transportation and unavailability.

Checks at the Oba Market, Benin City, indicated that prices of the commodity were declining, as a 100kg bag of the commodity that was previously sold for between N18,000 and N18,500 reduced  by 8 per cent to N16,500 during the week.

Mr. Obiora Egbu who sells grains at the Oba Market, Benin City, was elated about the situation as he connected the decline in prices to improved supply usually associated with season of plenty.

That of Northern region was quite cheaper especially when compared to what was obtainable in the Southern/Western regions. For example, a 100kg bag of Guinea corn at the Dawanau Market currently goes for between N9,500 and N10,000 down from  N11,000  sold previously.

Mallam Idris Ahmed, a trader at the Dawanau Market, Kano, said the onset of the season of harvest which commenced last month was responsible for the fall in prices.

He was, however, hopeful that prices would reduce the more during the season of mass production.

At the Achau Market, Kaduna, prices of the commodity were however, still stable at between N10,000 and N10,500, of which majority of the traders attributed to low sales and lack of purchasing power

Still, at the Gombe Main Market, Gombi, the situation was not different; with the prices of a 100kg bag of the commodity that were initially on the high side, sold for between N12,000 and 12,500 declined by 16 percent to N10,000 during the week.

Many of the traders in a chat with DAILY INDEPENDENT ascribed the pleasant situation principally to availability arising from on-season effect.

Visit to Lafenwa Market, Ogun State, showed that prices of Guinea  corn witnessed a decline of over 10 percent as  prices of a  100kg bag currently range from N14,500 to N15,000 as against  between N16,500 and N17,000  sold formerly.

A lady, who simply identified herself as Sekinat Kamal, but trades in the commodity at the Lafenwa Market, said the drop was a good omen as she attributed it to increased supply from the North.

The same could be said for that of  Bodija Market, Ibadan, as prices of a 100kg bag of Guinea corn that previously went for between N15,500 and N16,000 decreased  by over 10 per cent to N14,000.

Alhaji Gbenro Seidu who sells grains at the Bodija Market, Ibadan, said the situation was encouraging as it had enabled most of the traders to sustain their normal purchases which earlier reduced owing to the exorbitant prices.

He also opined that the situation had a positive effect on sales as patronage level had picked up.

But Madam Bukky Adebayo, another trader of the same market shared a contrary opinion, stressing that prices of the commodity were still on the high side, in spite of the decline recorded. She however blamed the situation to insurgency in the North since the chunk of the commodity emanates from there.

For that of Lagos, visits to popular Mile 12 and Iddo markets revealed that prices of the commodity were at a declining trend especially with the arrival of its season of plenty which would be more evident this month.

For instance, a 100kg bag of Guinea corn that previously went for as high as N19,000 in May started declining in June (N16,500) but reduced further within the review week, currently ranging from N13,500 to N14,000.

This, however, depends on the location and the haggling power of the buyer.

Mr. Uchechukwu Friday, who trades in all kinds of grains at the Iddo Market, Lagos, linked the decline to on-season effect and improved supply.

Also, the reduction witnessed in the prices of bags also reflected in the prices of smaller measures. For example, prices of a paint bucket measurement that was previously sold for between N1,500 and N1,000 currently goes for between N700 and N1,000 depending on the market, locations and bargaining power of the buyer.

The post Improved Supply Brings Down Prices Of Guinea Corn appeared first on Independent Newspapers Nigeria.

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Author: Iseghe Ajayi