At least 20 traders in the City of Kigali have been fined for unreasonably increasing the prices of maize, Irish potatoes, and rice.
The inspection followed a government decision, announced last week, to waive VAT on maize flour and rice, and regulate Irish potato prices to help control food price inflation in Rwanda.
According to the Ministry of Trade and Industry, an inspection conducted in various markets across the country revealed that some traders had significantly increased food prices. Maize, maize flour, rice, and Irish potatoes are among the staple foods in Rwanda.
"The inspection continues in different parts of the country. All traders should comply with the new prices," reads the announcement by the Ministry of Trade and Industry. The inspection is being carried out by the Ministry of Trade and Industry, the Ministry of Agriculture and Animal Resources, the National Police, and the Rwanda Inspectorate, Competition, and Consumer Protection Authority (RICA).
Trade and Industry Minister, Dr. Jean-Chrysostome Ngabitsinze, said that the government did not set the prices for beans as the production is currently low in the country. "There is no limited price for beans because the harvest is not enough on the market. We hope that with the expected good yields from the current farming season, we can consider the beans so that the prices could be stable," he said.
At least 78,000 hectares of bean crop farms across the country were affected by dry spells during agricultural season A, which usually runs from September to January. The drought effects resulted in a decrease in bean production in all districts of the Southern Province, except for the districts of Nyaruguru and Nyamagabe. Affected districts also include Bugesera and other districts of Eastern Province.
Beans are widely cultivated across Rwanda and are the main staple food, providing households with 32 percent of the required calories and 65 percent of the protein. In 2022, beans were cultivated on land estimated at 362,439 hectares in season A compared to 268,634 hectares in season B and 3,292 hectares in season C.
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Bean production was estimated at 235,818 metric tons in season A compared to 210,290 metric tons in season B and 3,381 metric tons in season C, according to a report by the National Institute of Statistics of Rwanda (NISR). The report says this is a decrease of 9 percent in season A, 8.4 percent in season B, and 5 percent in season C when compared to the respective seasons of 2021.
Ngabitsinze said that the prices, in general, are set up by considering the investment cost, production, transport cost, and other factors.
Rwanda's Consumer Price Index (CPI), the main gauge of inflation in urban areas, increased by 19.3 percent year on year in March 2023, down from 20.8 percent in February 2023.
In March, food and non-alcoholic beverages increased by 41.3 percent on an annual basis and increased by 4.3 percent on a monthly basis, the National Institute of Statistics of Rwanda (NISR) announced. The prices of transport increased by 12 percent on an annual basis and were stable on a monthly basis.
The data also show that "local products" increased by 20.8 percent on an annual change and increased by 2.2 percent on a monthly basis, while prices of the "imported products" increased by 14.8 percent on an annual basis and increased by 0.6 percent on a monthly basis.
The prices of "fresh products" increased by 53 percent on an annual change
