However, rising prices in Kenya are due to speculation. 'Farmers are hoarding maize in anticipation of higher prices as a result of expected reduced production due to the long rains,' the report said.
Kenya's private maize millers are unable to find grain to buy despite offering relatively high prices.
'In Tanzania, the high prices are attributed to low supplies and increased transportation costs as a result of high fuel prices.'
Wholesale prices in East African capital cities during March ranged between $298/metric tonne (MT) and $226/MT, while those of beans ranged between $888/MT and $598.
During March, the price of rice in Kampala, Dar es Salaam and Kigali ranged between $815/MT and $775/MT.
Since January, maize prices have been highest in Dar es Salaam and lowest in Kampala, while Rwanda had the lowest price for beans.
In Kigali,wholesale maize prices are expected to increase during the next two months then ease when harvesting starts in July.
'Commodity prices could ease in Tanzania when maize harvesting in the southern region begins. In Kenya, however, the prices will remain high for the next couple of months.'
Short-term relief is expected in July because of increased supplies obtained from border trade after harvesting in Uganda, Tanzania, parts of the Rift Valley and western Kenya.
Usually, harvesting in parts of the Rift Valley and western Kenya produces about 180,000MT.
After mid-May 2008, maize will flow from southern Tanzania into Dar es Salaam thus increasing supply.
Source: Relief Web
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