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| Mwenge Food Market, Dar es Salaam |
Unstable food prices are likely to affect the growth of other
businesses and the entire economy unless investments in the agricultural sector
improve.
Soaring food prices will seriously affect the well-being of low-income
earners who spend more than 70 per cent of their income to purchase basic
needs, mostly food.
The Confederation of Tanzania Industries (CTI) has expressed concern
over the trickle down effect of rising food prices on the manufacturing sector
because of the eroded consumer income.
"As the household income is eroded by high food prices, demand for
other goods and services may automatically fall," noted Mr Hussein Kamote,
the CTI Director of Policy and Advocacy in an interview on Thursday in Dar es
Salaam.
Food prices provide important insights into how household budgets and
provision for the family's nutrition and
health are being squeezed.
He said when a large portion of household earnings is spent on food,
demand for non-food products like building materials, clothes, shoes, alcohol
and soft drinks drop, thus impacting heavily on the returns of the
manufacturing firms.
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| Mr Kamote |
Mr Kamote said investments in the agricultural sector should focus on
local needs to ensure that the whole country is supplied with enough food, as
this would help stabilise prices.
He also said infrastructure development could be a significant strategy
in stabilising prices as well as harnessing market potentials in neighbouring
countries.
A survey conducted at Tandale, Kisutu and Tandika markets in Dar es Salaam established that prices have continued to
edge upwards since January.
The Vice-Chairperson of the Tandika Market, Mr Athuman Jongo, said the
retail price for rice has risen to 2,500/- from 1,800/- per kilo. Beans have
gone up to 2,000/- and 2,500/- per kilo
from 1,200/- and 1,500/-.
Sugar has made a leap to 2,600/- from 2,100/- per kilo, while cooking
oil is selling at 4,500/- instead of
2,500/- per litre.
Mr Jongo said Tandika market has been receiving large consignments of
cereals, a good sign of plenty of food upcountry. Mr Samwel Nyamhongo, a trader
at Kisutu market, said rising transport costs pushed food prices upwards.
"For food prices to go down, transport costs must drop
first," he said. Mr Hasan Kiwenga
of Tandale market said food prices are expected to drop in the next
two months when harvesting begins.
Source: The Daily News,dailynews.co.tz, reported by Sebastian Mrindoko
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