Potato price surge hits Dar traders, consumers

DAR ES SALAAM: IRISH potato prices at Dar es Salaam’s Mabibo wholesale market have surged by up to 31 per cent, squeezing traders and consumers as declining supplies, higher farm-gate prices and transport costs push up costs across the value chain.

A spot check by the ‘Daily News’ at the market, popularly known as ‘Mahakama ya Ndizi’, found that a 100-kilogramme sack was selling for between 85,000/- and 95,000/-, up from 65,000/- to 75,000/- last month and during the same period last year.

The increase represents 30.8 per cent at the lower end and 26.7 per cent at the upper end. Mabibo Market Chairman of the potatoes and onions section, Mwinshumu Saidi, said prices had risen steadily as supplies from producing areas declined while demand remained firm.

He said a 100-kilogramme sack sold for about 60,000/- in October last year, underscoring the sharp increase recorded this year.

“The price rise is due to the shortage of the crop in producing areas, which has reduced supply and increased demand. Suppliers have also raised prices to maintain their profit margins,” Mr Saidi said.

A staple food trader in Njombe Mr Thomas Chavala said transporting potatoes from Njombe and Iringa to Dar es Salaam involves collection, transport and levies costing between 5,000/- and 8,000/- per sack.

He said farm-gate prices had also increased as production declined, with farmers now selling a 100-kilogramme sack for up to 55,000/-, compared with about 30,000/- previously.

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Njombe potatoes are mainly supplied to Dar es Salaam, while produce from the Southern Highlands also serves Moshi and Arusha, where demand remains high.

“If a sack sells for 95,000/- in Dar es Salaam, the price in Moshi, Kilimanjaro, can range between 100,000/- and 115,000/-,” he said.

The price surge is also squeezing chips vendors, whose margins are being eroded by higher raw material and operating costs. Juma Shemghei, a chips vendor in Mtipesa, Mabibo, said some vendors were reducing portion sizes to avoid losses, risking customer dissatisfaction.

According to weekly wholesale staple food crop prices released by the Ministry of Industry and Trade in the third week of August, the average price of a 100-kilogramme sack in several Dar es Salaam markets was 100,000/-.

Prices in Ilala, Tandika, Temeke and Buguruni stood at 100,000/-, while Ubungo recorded the lowest at 70,000/-.

The price trend shows how tighter farm supply and rising logistics costs are feeding through the value chain, putting pressure on business margins and consumer prices.