CHAD Food Security Outlook Update March 2011

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Price ceilings for crops reduce farmer income

• In addition to the cereal price ceilings, the prices of onions in Ouaddai, a major cash crop in the East, has also been capped at 30 percent less than the prevailing market price in that period. This has led to a substantial loss of income for vegetable growers with likely negative effects on their food security.

• The flow of trade from cereal-surplus zones in the south and cereal deficit areas in the north is abnormally low since October 2010 because of government-mandated price ceilings. The flow of non-capped cash crops (groundnuts, sesame) remains strong.

• The lifting of the livestock export ban on February 14, 2011 led to decongestion of pastures in the center of the agropastoral areas, where there were concentrations of cattle for export to neighboring countries of West (Nigeria, Cameroon).