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Rukwa cooking oil price doubles in one month

RUKWA residents have to dig deeper into their pockets as the price of edible cooking oil has doubled since last month.

A survey conducted by ‘Daily News’ in some parts of Sumbawanga Town showed that the retail price of cooking oil has hiked since December last year.

Currently edible cooking oil of MO Safi and Korie trade at 100,000/- per 20 liter from 50, 000/- to 60,000/-.

In the event, the price fluctuation has compelled some retail traders to hesitate selling Korie, Mo Safi and sunflower oil products, fearing the buyers’ low purchasing power.

“The price has skyrocketed, I’m worried of restocking because I may end up failing to find buyers,” said a retail shopkeeper, Mr Johnson Mwambe.

Similar sentiments were echoed by retail traders in Kalambo, Nkasi and Sumbawanga districts.

“Most of our customers are these petty traders who buy two to five liters... but they no longer come,” explained Ms Mwajabu Babu, who runs a retail shop in Nkasi District.

Sources recounted that the surge of sunflower cooking oil price was attributed to heavy rain that had affected sunflower farming in the region.

“The price of sunflower cooking oil has gone up from 3,500/- per bottle a half a liter to 8,000/-. This has an impact on buyers’ frequency trend in my shop. Actually, they do not come at all,” explained a retail trader from Matai Town in Kalambo District, who preferred anonymity.

Tanzania’s annual demand for edible oil is estimated at 500,000 tonnes, while domestic production is only 200,000 tonnes annually.

Subsequently, there is a deficit of 300,000 tonnes, which is covered by imports. Equally, Tanzania imports assorted cooking oil brands from Malaysia and Singapore as well as from some neighbouring countries.

Demand and supply has caused hiked and lowered prices in markets largely dominated by imports.

According to FAO, the Vegetable Oil Price Index gained a stunning 14.5 per cent in November from October 2020 led by an on-going rally in palm oil prices linked to sharp contractions in world inventory levels.

CRDB Bank is likely to remain the most ...

Author: PETI SIYAME in Sumbawanga

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