Cameroon: the price of a 120 KG bag of locally produced rice should drop by 6000 CFA francs in the Far North

The Far North region of Cameroon is set to witness a significant decrease in the price of locally produced rice, a staple food that forms an integral part of the daily diet for many. This price drop is expected to be around 6000 CFA francs for a 120 KG bag of rice. Such a price reduction can profoundly impact the local economy and the residents’ livelihoods.

Rice farming in Cameroon has been a growing sector, with the government and various stakeholders investing in its production to ensure food security and reduce reliance on imports. The price drop could be attributed to several factors, including increased local production, government subsidies, or strategic partnerships, such as the recent import deal with India. This deal has allowed for a significant import of rice at reduced prices, which in turn may have influenced local market prices.

The implications of this price drop are far-reaching. For consumers, it means improved access to a vital source of nutrition at more affordable prices. For local farmers, it could mean a need to increase efficiency and reduce production costs to stay competitive. It also highlights the importance of market dynamics and the role of government policy in regulating food prices.

Moreover, the price reduction comes at a crucial time when global economic challenges and inflationary pressures are affecting the cost of living. By lowering the price of such a fundamental commodity, the government aims to alleviate some of the financial burdens faced by its citizens, especially in regions like the Far North, which may be more susceptible to economic fluctuations.

This development is a testament to the concerted efforts by the Cameroonian government to stabilize food prices and support the agricultural sector. It also underscores the importance of international cooperation in addressing local market needs. As the situation evolves, it will be essential to monitor the effects of this price change on both the local economy and the well-being of the Cameroonian people.

Famine Early Warning Systems Network (Fews Net) released the price bulletin for Cameroon on July 31, 2024. The said price bulletin provides a set of graphs indicating the monthly prices of some staple foods during the current marketing year for some urban centres. One of the products that will stand out during August is rice, mainly in the Far North region. According to the graphs presented, the prices of a 120 KG bag of locally produced rice are expected to experience an average drop of 6,000 CFA francs as of August 31 in the cities of Mokolo, Yagoua, Maroua and Kousséri.

In detail, the wholesale price of a 120 KG bag of rice would return to 58,000 CFA francs at the end of the month against 68,000 CFA francs at the end of August 2023 in Maroua, the regional capital of the Far North. That is a decrease of 10,000 CFA francs. The trend will be the same in Kousseri where prices should drop by 9,000 CFA francs from 69,000 CFA francs in August 2023 to 60,000 CFA francs in August 2024. On the Mokolo side, the decrease will be the least pronounced, i.e. 2,000 CFA francs. Here the wholesale price will be 58,000 CFA francs per 120 KG bag against 60,000 CFA francs a year ago. In Yagoua, overall prices will remain static without change over the study period, i.e. 48,000 CFA francs, the wholesale price of a 120 KG bag of rice.

If the document does not justify the announced downward trend in the price of this cereal in this part of the country, we can think that this could be linked to the lean period currently affecting this part of the country. Indeed, during this period from June to August and preceding the first harvests, mechanisms are put in place to promote access for populations to foodstuffs such as rice, sorghum, corn, and millet.

It must be said that if the wholesale price drops, this could have an impact on the retail price of this cereal, which usually sells for between 500 and 600 CFA francs. This would be a positive point for the household basket in this region, whose regional capital is the most expensive in Cameroon at the end of June 2024. Indeed, according to the “Note on the evolution of final household consumption prices” made public by the National Institute of Statistics, Maroua has an inflation rate of 7.7% at the end of June 2024 compared to the same period in 2023. The regional capital of the Far North thus dethroned Ngaoundéré, which had occupied this position consecutively (three times in a row). Over the last twelve months, it (Maroua, Editor’s note) has also maintained its position as the most expensive city with a consumer price index of 7.4%.

Recall that the Famine Early Warning Systems Network (Fews Net) monitors trends in staple food prices in countries vulnerable to food insecurity.