By Minister of Trade, Industry, Regional Integration and Employment, Hon Baboucarr Ousmaila Joof, 11th March 2024
Firstly, I would like to thank all of you for honoring our invitation to attend this important press briefing which aims at updating the general public through the media on the current situation of the stocks and price levels of essential food commodities as we start the holy Month of Ramadan.
We also want to share with the general public some of the factors contributing to the current price hikes and the measures adopted by the government through my Ministry to ensure that we dampen the effect of the global price hikes on the prices of essential food commodities in the domestic market as well as ensure their availability throughout the Month of Ramadan and beyond.
Distinguish Ladies and Gentlemen
The Government of The Gambia is committed to the food security of the country by ensuring the availability and accessibility of essential food commodities for the general public. As a result, my Ministry monitors the stock and price levels of basic commodities on a weekly basis. The main objective of this exercise is to ensure that the Ministry has first-hand information on the stocks and the prices of these commodities at all times for timely and informed policy decisions as well as engagements with importers and other relevant stakeholders to avoid shortages while at the time ensuring price stability.
Distinguish Ladies and Gentlemen
Please permit me now to share with you the current stocks of essential food commodities as of 4th March 2024.
The stocks of rice have increased significantly from 5,254 Metric Tons in February to 24,973 Metric Tons in the week of 4th March 2024. Which is a 375% increase. This current stock level of rice is sufficient for the month of Ramadan. In addition, Laura’s Food Company is expecting 2,295 Metric Tons by 15th March 2024 while YONNA Enterprise is also making arrangements to import D15, 000 Metric Tons of rice from India.
The Stock of Sugar has also increased considerably from 1,640 Metric Tons in February 2024 to 17,115 Metric Tons as of 4th March 2024, an increase of 943%. The stocks of flour, edible oil, onions and potatoes have all increased in the month of March 2024 and are adequate for the month of Ramadan.
With regards to onions, in addition to imported ones, Mkay Agro Farms has started supplying the market with local onions and the Farm is expecting to produce 4,000 MTs this year from 2,500 MTs last year. Mak-Food is also expecting to harvest 1,500MTs which would be in the market around March 2024. BAKAF’s expected output is 2,500 MTs of onions this year and the farm will begin supplying the market around the first week of March 2024. The three farms are expected to produce a total of 8,500 MTs of onions this year.
In addition to the industrial farms, women onion producers across the country are also expecting to start their harvest and supply the market by mid-March 2024.
With regards to potatoes, Mak-Food is expecting a total of 6,000MTs of potatoes this year which is an improvement over 4,500MTs from last year’s harvest. The farm will start supplying the market around 15th March 2024.
Distinguish Ladies and Gentlemen
Let me now turn to the average wholesale and retail prices of essential food commodities as of 4th March as follows:
The average wholesale prices are a reflection of the stock level table. As stocks of most commodities increased in the month of March we observed general stability in the wholesale prices except for a few which have increased slightly including rice and chicken legs.
The average retail prices of most of the essential food commodities continue to increase in the month of March. A significant increase was shown by rice, sugar and cement. The price of American rice has increased from D1,850 per 50kg from the second week of February to D2,150 per 50kg as of 4th March 2024. The prices of sugar have also increased from D2,750 in February to D2,850 as of 4th March 2024 as well as cement from D375 to D410. It is expected that the stability in the wholesale prices will be translating at the retail end in the coming days.
Distinguish Ladies and Gentlemen
ONE MAY ASK WHAT ARE SOME OF THE FACTORS CONTRIBUTING TO THE PRICE HIKES:
The international prices of rice have been increasing since December 2023. The prices of Thailand A1 increased by 3.7% from US$629.6/MTs in December 2023 to 648.9/MT in January 2024. The world price of sugar is currently declining, from US$707.5/MT in December 2023 to US$659.84/MT in January 2024. The international prices of edible oil have also continued to increase from US$ 814/MTs in December 2023 to US$845/MTs in January 2024 up by 1.8%. The negotiated concessional price of Indian rice imported by Gambian suppliers was $405 per metric ton at CIF last whilst the lowest negotiated price this year is $490 at CIF which shows an increase in concessional price.
EXPORT BANS
Following the COVID-19 Pandemic in 2022, trade-restrictive measures in the form of quotas and export bans were adopted by some developed countries including India. These export restrictions were adopted by these countries to ensure food security in their domestic economy. The export bans disrupted the global market with upward pressure on commodity prices. These have a direct effect on the prices of essential commodities in the domestic market of net importing countries, particularly the Least Developed Countries like The Gambia.
During the first quarter of 2024, the dalasi has depreciated against all the major trading currencies, on average 4.3% for US Dollars, Euro and British Pound Sterling. In the same quarter, it has also slightly depreciated against the CFA (5000) by 1.2%.
Distinguish Ladies and Gentlemen
To contain and mitigate the external shocks on the stocks and prices of essential commodities in the domestic market, The Government of the Gambia has adopted a number of measures including:
- The Government has successfully negotiated with the government of India to secure a waiver for the importation of rice in 2023. Accordingly, the Government of India allocated the first quota of 100,000 MTs to The Gambia. Following this allocation, my Ministry worked with a number of importers to lift these consignments. A total of 63,650MT of rice was imported under the Indian Waiver.
- The second quota allocation of 50,000 MT was also approved for the Gambia in 2023 making a total of 150,000 MT for The Gambia. Following the approval of the second quota, the Ministry is working with some importers to utilize the quota. These new allocations are currently under price negotiations between the importers and the relevant Indian authorities through the support of my Ministry and the Gambia High Commission in India. The plan is to have the first consignment in Banjul during the first week of Ramadan. Two of the suppliers have successfully negotiated the price at $490 as the lowest price.
- The Ministry of Trade, Industry, Regional Integration and Employment has also requested an additional 150,000 MTs of rice as a new allocation for 2024. The Ministry has also requested the Indian Government to include sugar and oil as part of the support package for the waiver in 2024. It is envisaged that these consignments will increase the supply of these commodities and therefore exert downward pressure on the prices in the Domestic market.
- My Ministry also continues to work collaboratively with the Gambia Ports Authority to provide priority berthing of vessels carrying essential commodities to avoid demurrage charges that may add to prices in the markets.
- In addition, where critically necessary, MOTIE engaged the Central Bank to provide support to access forex to suppliers of essential commodities.
All these measures have helped not only to ease pressure on prices but ensure the availability of essential commodities.
Distinguish Ladies and Gentlemen
In conclusion, I would like to once again reiterate the full and continued commitment of the Government of The Gambia to ensure that essential food commodities are available and accessible to the general population. My Ministry will continue to monitor the stocks and prices and adopt appropriate policy measures to achieve that objective, especially in this Holy month of Ramadan.