Uganda

WFP VAM | Food Security Analysis - Uganda: Market Update, 15-31 July 2020

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Situation Report
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Because the COVID-19 pandemic and the mitigation measures put in place to reduce transmission and curb the spread of the virus may disrupt the functioning of markets in Uganda, WFP increased the coverage and intensity of its remote market monitoring system to collect near-real-time data on prices of food commodities in Karamoja, refugee areas and selected markets in the rest of the country to better inform decision making.

For markets in Karamoja and the rest of the country, prices of key national staples including maize, beans, and sorghum are monitored. In Karamoja, the price of goats is also monitored. For refugee settlement markets, the price of the food commodities that constitute the WFP General Food Assistance (GFA) food basket (maize grain, beans, vegetable oil and salt) are monitored and the price of the GFA food basket is compared with the GFA cash transfer value to gauge the purchasing power of refugees that receive the GFA as cash.

Key Highlights

1. Refugee Settlement Markets

  • Overall, the market price of the WFP GFA food basket increased marginally by 2 percent from the first half to the second half of July 2020. In the South West, the average market price of the food basket decreased by 3 percent whereas, in West Nile settlements, the average cost of the GFA food basket increased by 4 percent.
  • Even with an increase in the price of the GFA food basket in the second half of July 2020, overall, the WFP transfer value could cover 100 percent of the cost of the reduced (70%) WFP GFA food basket. At the regional level, the WFP cash transfer value could cover 142 percent and 99 percent of the cost of the food basket in South West and West Nile regions respectively.
  • Except in Lobule, Adjumani, Palabek and Rhino Camp settlements, the WFP cash transfer value was enough to meet the cost of the GFA food basket in all the other refugee settlements in the country.
  • In the second half of July 2020, the GFA food basket was most expensive in Lobule, Adjumani and Palabek, where the WFP cash transfer value could only cover 81 percent, 88 percent and 92 percent of the cost of the food basket respectively.
  • In Rhino Camp, Adjumani and Lobule, the price of the WFP GFA food basket has been consistently higher than the WFP transfer value for the past 3 months.
  • The average price of maize grain, vegetable oil and salt remained stable from the first to the second half of July 2020. The average price of beans increased by 8 percent during the same period.

2. Karamoja Markets

  • Across all reference markets in Karamoja, the average price of maize grain remained stable from the first half to the second half of July 2020, after a decrease of 7 percent from June to the first half of July 2020.
  • From the first to the second half of July 2020, the average price of sorghum grain decreased by 5 percent, after registering a 9 percent decrease from June to the first half of July 2020.
  • The average price of beans in the second half of July 2020 decreased by 8 percent compared to the first half of July 2020. From June to the first half of July 2020, the price of beans reduced by 6 percent after declining by 9 percent from May to June 2020.

3. Key Markets in the Rest of the Country

  • The average price of maize grain remained stable from the first half (UGX 1,035/kg) to the second half of July 2020 (UGX 1,010/kg), after decreasing by 11 percent from June to the first half of July 2020.
  • The average price of beans remained stable from the first half (UGX 3,518/kg) to the second half of July 2020 (UGX 3,514/kg), after declining by 4 percent from June to the first half of July 2020.
  • In the second half of July 2020, the average price of sorghum decreased marginally by 2 percent from the first half of July 2020, after decreasing by 9 percent from June to the first half of July 2020.