RICE prices are set to continue clinging at the current historical highest level as supply is still far from meeting the demand.
The average prices climbed by 45 per cent to 3,200/- a kilo in the last three months and farmers are now setting the price tone through by passing middlemen while export demand is on the higher side.
Mr Hasuni Hasuni, a rice wholesale trader at Tandika Market, said prices of the commodity are also pushed up due to high transport costs, despite the government's effort to subsidise fuel pump prices to support users.
"I am buying rice from Mbeya, Shinyanga, and mostly Morogoro. I have stopped buying from Shinyanga because transport costs are too high," Mr Hasuni said.
He noted that the cost of transporting a sack of rice weighing 100 kg currently is 10,000/- compared to 7,000/- in May from Ifakara and Kilombero of Morogoro region to Dar es Salaam.
"To stay on business, we have joined hands to at least realise a thin margin of profit," Mr Hasuni said.
A 'Daily News' survey in Dar es Salaam city grain markets, namely Tandika, Ilala and Tandale showed that the highest rice grade fetches 3,200/- while the lowest grade goes at 2,400/- per kg with an average increase of 45 per cent in just four months.
The October inflation rose five years high to 4.9 per cent from 4.8 per cent in the previous month, pushed mainly by food and non-food items, where rice alone contributed by 4.3per cent.
The high prices turned life into hardship for many Dar es Salaam dwellers, especially those who depend mostly on rice as their common staple food.
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Ms Salima Mashaka, a food vendor at Veterinary Market, said she goes for low-grade rice to make ends meet but not for business.
"I am buying rice at 2,900/- per kg. This grade is not favourable for this kind of business. It is only that it is cheaper with several challenges on cooking... nothing comes cheap," Ms Mashaka said.
Another wholesale trader, Mr Zahoro 'Mpemba' said the demand for export rice to neighbouring countries is on the high side, contributing to a sharp price rise.
"It is very expensive to buy rice at the moment, while competing with exporters... who are buying directly from the farmers," Mr Zahoro said, adding that farmers are setting prices to cutoff middlemen.
Mr Mpemba nnoted that he was getting a small return from the rice business, "bear in mind the supply is down while prices are high."
Mr Mpemba said he used to receive some 200 sacks of maize in May compared to between 100 and 150 a week, last week.
According to government statistics, the country produced 2,629,519 tonnes of rice in 2020/21 against the demand of 1,091,778 tonnes.
Available data show that Uganda is the main rice importer from Tanzania, importing an average of 136,377.97 tonnes in the last three years which is equivalent to 56.42 per cent of the whole exports.
Uganda was followed by Kenya 54,358.17 tonnes, Rwanda (37,759.57), the Democratic Republic of Congo (4,796.33) and Burundi (4,829.27).
