Fuel, drought impact Uganda prices.

PositionBrief article

Agriculture accounts for nearly one-third of Uganda's GDP. And, therefore, the effects of the recent drought combined with rising fuel costs have a negative impact on the economy as a whole and consumers in particular.

A recent review of staple food prices in Kampala by The Monitor (Kampala) showed some alarming price increases. The Monitor published some examples of these standard measure price increases on March 16, 2006.

Among the more startling increases were a 100 percent increase in the price of onions; a 71 percent increase in the price of beans; a 50 percent increase in the price of peas; rice increasing at 38 percent, and matooke (a popular cooking banana) with an increase of 33 percent.

The rising cost of fuel was cited by The Monitor as one of the reasons-in addition to drought-for the surge in basic prices. Fuel affects transportation costs as well as processing costs. For example, maize, another important staple crop, is processed by millers who...

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