NIGERIA. Highlights. Borno and Yobe States Market Monitoring Report

Transcription

1 Fighting Hunger Worldwide IGERIA Borno and Yobe States Monitoring Report July 217-ISSUE 6 Highlights The continuing stability in the value of the aira against major foreign currencies over the past four months, along with the slight decline in inflation (16.2% in June and 16.1% in July) most likely contributed to price stability for some imported food commodities such as rice. While the prices of local and imported rice remained stable in most monitored markets in Borno and Yobe States during the past three months, the price of red beans continued to increase across several markets in these two states, potentially hampering food access for vulnerable and market-dependent households. The increasing price of red beans has been attributed to seasonal decline in market availability of the commodity as current inflows have been affected by production decline from the previous year. Maize price increased by a range of 14.3 percent and 4. percent in the monitored markets of Borno State, heightening pressure on the purchasing power of households while the largely stable or declining price of maize in the markets of Yobe State likely boosted access to the grain among food-purchasing households. Despite the decline/stability in the prices of some food commodities at the height of the lean season, the prices of most staple food commodities are generally expected to remain well above average in both Borno and Yobe States during the rest of the lean season months of August and September. Introduction This monthly bulletin provides information on prices of food commodities and the s in the prices of staples in Borno and Yobe states. Staples contribute 4 8 percent of energy intake for the most vulnerable population groups in the Borno and Yobe. Therefore, even a small increase in staple food prices has a high impact on overall food consumption, especially when the food basket is composed of the more common staples such as rice, maize and beans. To this end, WFP igeria Country Office is implementing a bi-weekly market monitoring system in 11 markets in Yobe State and in 8 main markets within Maiduguri and Jere Local Government Areas (LGAs) of Borno State to highlight the impact of market trends on households access to food. In Borno State, the monitored markets include Monday market, Abbaganaram, Budum, Kasuwan Shanu, Bullumkutu, Baga Road, Tashan Bama, Custom market, Yan Doya and Bolori Stores In Yobe State on the other hand, Damaturu, Bursari, Fune, Potiskum, Jakusko, Geidam, Yunusari, Yusufari, Bade, guru, angere markets are monitored (Figure 1). Borno and Yobe States Monthly Monitoring Report July ISSUE 6 1

2 Figure 1 price monitoring locations in Borno and Yobe States Yobe market locations Maiduguri (Borno) market locations Food basket monitoring In June the Harmonization Committee of the Food Security Sector Working group recommended a new food basket which will serve as a basis for the calculation of a new transfer value. As in Table, the food basket items include, rice, maize, beans, palm oil, groundnuts, sugar, groundnut/vegetable oil, salt and onion. The resulting transfer value of 7% of the food basket is 17,3.4 aira in Maiduguri and 17, aira in Yobe. The recommendation of the new transfer value is based on findings by Save the Children that very poor and poor IDP households in urban areas such as Maiduguri and Damaturu are able to cover some portion of their food needs. Table 1: Transfer value calculated for household members in Maiduguri markets for one month HOUSEHOLD SIZE Food Item gms/da gms/hh/d gms/hh/mo kg/hh/mont Kc/day/pp y/pp ay nth h Rice 1 Millet Maize 2 Beans Palm oil 7 22, , Groundnut 1 8 Sugar 1 G/nut oil/veg Oil Price/HH/month aira 47 1, ,37 11, ,16 1, , , , ,224 Salt Onion , Total Cost food basket at 7%: 7% 4 Price/kg- aira (MPM) 2,1 24,793. 1,47 17,3.4 3,471.9 Per capita based on 7% transfer value Borno and Yobe States Monthly Monitoring Report July ISSUE 6 2

3 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 ov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 In Yobe State, the cost of the was also calculated with market prices from Damaturu market (Table 2). The transfer value calculated for 7% of the daily food needs of a -person household for one month is 17,424.7, which is slightly higher than that of Maiduguri. Table 2: Transfer value calculated for household members in Damaturu markets for one month Food Item HOUSEHOLD SIZE gms/da y/pp Kc/day/pp gms/hh/d ay gms/hh/mo nth kg/hh/mont h Price/kg- aira (MPM) Price/HH/month - aira Rice , ,67 Millet. Maize , ,37 Beans , , Palm oil , Groundnut , Sugar , G/nut oil/veg Oil , ,1 Salt Onion , Total 2,1 24,892. Cost food basket at 7%: 7% 1,47 17,424.7 Per capita based on 7% transfer value 3,484.9 Figure 2 aira to Dollar ex rate Currency depreciation Inter-bank Foreign Ex Bureau de Change (Black market) The Central bank sustained its effort at ensuring ex rate stability through interventions and implementation of policies to address supply bottlenecks and enhance liquidity in the foreign ex market. Consequently, there was improvement in the ex rate of the naira to the US dollar. The average ex rate of the naira at the inter-bank segment, at 3.4 per US dollar, appreciated by.2 per cent relative to the level in the preceding month. The Central Bank of igeria (CB) continued to supply foreign ex reserves to the ex market through weekly sales, making available more supplies of U.S. Dollars and other essential foreign currencies. This has led to the strengthening of aira (G) and a narrowing the gap between official and parallel ex rates. As a result of the pegging of the naira, the aira appreciated by 26.2 percent at the parallel market between February and June 217 (Figure 2). Borno and Yobe States Monthly Monitoring Report July ISSUE 6 3

4 Price trends in Borno and Yobe The prices of food commodities like sorghum, rice (local and imported) and maize prices remained stable or declined in the across the monitored markets in Borno and Yobe. Prices of red beans were observed to have increased significantly against the previous month and over 3 months in the above markets in Yobe and Borno State. Furthermore, the hike in prices of peanuts (1-17%) in Borno and Yobe, might be attributed to seasonality of the commodity and reduced stock in markets as a result of production deficit. Yobe s Monitoring Update July 217 Commodity Potiskum Peanuts (1.2 Kg) % 7.1% 37.%.% Maize flour (1.2 Kg) %.% 21.%.% Onion (Grams) 1.% -.% 1.% -66.7% Palm oil (Litre) 62 2.% -1.7% % -28.1% Red beans (1.2 Kg) % 18.8% % 18.8% Imported rice (1.2 Kg) 4 2.9% -1.8% 2-4.% 16.7% Local rice (1.2 Kg) % -3.3% % -.9% Vegetable oil (Litre) 7 7.7% -12.% -23.1% -33.3% Yam (1 tuber) 6 14.%.% 2.% 16.7% guru Damaturu Peanuts (Kg) % -6.3% % 4.3% Maize flour (Kg) % -6.7% 21.%.% Onion (Grams).% -37.%.% -37.% Palm oil (Litre) % 3.6% 7 7.1% 7.1% Red beans (Kg) % 18.8% 4 2.% 12.% Imported rice (Kg) 2-12.% -4.% 1-7.3% 2.% Local rice (Kg) %.% 41-3.% -8.9% Vegetable oil (Litre) 7.% -17.6% %.% Yam (1 tuber) 2 61.% -12.% 6 14.% -14.3% Geidam Yusufari Peanuts (Kg) % -6.3% %.% Maize flour (Kg) % -16.% % 12.% Onion (Grams).%.% 2.% -28.6% Palm oil (Litre) 7-11.% -11.% % -7.1% Red beans (Kg) % 26.7% 4 2.% 2.% Imported rice (Kg).% -8.3% 2-4.%.% Local rice (Kg) 42.% -1.% 4 -.9%.% Vegetable oil (Litre) 2-2.% -2.% % -12.% Yam (1 tuber) % 33.3% 7 13.% -36.1% Price increase above normal price fluctuation Price fluctuation is considered normal if ormal Price Fluctuation Prices in aira price is within % for 1 month or Price decrease below normal price fluctuation within 1% for 3 months Yunusari Borno and Yobe States Monthly Monitoring Report July ISSUE 6 4

5 Maiduguri s Monitoring Update July 217 Commodity Monday market Peanuts (1.2 Kg) 17.6% 17.6% 44 1.% -2.2% Maize flour (1.2 Kg) 3.% 16.7% 2 8.7% -16.7% Onion (Grams) 7-2.% -2.% 1.%.% Palm oil (Litre) 42.% -1.% 4-3.6% -1.% Red beans (1.2 Kg) 1.8% 29.4% 4-3.6% -4.7% Imported rice (1.2 Kg) 6.%.% 7.9% -8.% Local rice (1.2 Kg) % -1.1% 42.% -6.7% Vegetable oil (Litre) 4.%.% 42-4.% -1.2% Sorghum (1.2 Kg) 2.% -16.7% 23.% -37.3% Bullumkutu market Abba Ganaram Peanuts (Kg) 4 -.9% -11.1% 42 9.% 1.2% Maize flour (Kg) 4 6.7% 14.3% 3.% -14.3% Onion (Grams) 1.%.% 12 2.% 2.% Palm oil (Litre) 29.4% 1.% 4 6.7% -2.% Red beans (Kg).3% 14.9% % -2.2% Imported rice (Kg) 6.% -.% 7.% -4.2% Local rice (Kg) % -7.% % 6.3% Vegetable oil (Litre) 42.%.% % 6.3% Sorghum (1.2 Kg) % -11.% % 12.% Custom market Baga Road market Peanuts (Kg) 4 -.9% -.9% %.% Maize flour (Kg) % 22.8% % -12.3% Onion (Grams) 9 -.% -.% 1.%.% Palm oil (Litre) % -8.3% 4 6.7% -23.8% Red beans (Kg) % 14.7% % -2.3% Imported rice (Kg) 7-4.2% -8.% 7 4.% -8.% Local rice (Kg) % -4.3% 17.6% 17.6% Vegetable oil (Litre) 4 -.9% -2.4% 4-2.2%.6% Sorghum (1.2 Kg) % -41.3% 2 4.2% -9.1% Kasuwan Shanu Budum market Peanuts (Kg) 4-9.1% -11.1% 4 12.% 12.% Maize flour (Kg) 2-2.% -42.9% % 4.% Onion (Grams) 1-2.%.% 1.%.% Palm oil (Litre) 4-3.6% -2.% 4.%.% Red beans (Kg) 8.7% 14.9% 22.2% 22.2% Imported rice (Kg) 6 1.7% -4.% 6-4.%.% Local rice (Kg) % -4.4% 4.% 2.3% Vegetable oil (Litre) 41.% 8.9% % -7.% Sorghum (1.2 Kg) 2-13.% -2.% 2.% -37.% Price increase above normal price fluctuation Price fluctuation is considered normal if ormal Price Fluctuation Prices in aira price is within % for 1 month or Price decrease below normal price fluctuation within 1% for 3 months Conclusion All indications point to a possible steady rise in food prices, especially pulses and legumes as we approach the month of August, a period typically associated with higher prices. Food prices may likely have reached its peak in July, the height of the hunger season. Against the background of seasonal decline in household food stocks and limited livelihoods/ income-earning opportunities in the two states, the sustained high prices of key staples such as maize and beans is likely to further hamper the purchasing power and food access for the most vulnerable households. While staple food prices are projected to continue to rise until newly harvested grains arrive in the market, it is likely that the ongoing humanitarian assistance to the most vulnerable population would reduce the impact of such soaring food prices on food insecure households. Tashan Bama For further information please contact: VAM Team, WFP igeria, igeria.vam@wfp.org Borno and Yobe States Monthly Monitoring Report July ISSUE 6