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Business News of Wednesday, 6 October 2021

Source: nairametrics.com

Low inventory and transport cost push price of beans to N100,000

brown beans brown beans

The price of a big bag of brown beans has skyrocketed to N100,000 as traders lament low inventory and a significant increase in transportation cost as reasons for the sudden surge.

This is according to information obtained by Nairametrics team from staple food traders in various markets in Lagos State.

A big bag of brown beans, which sold within the range of N85,000 and N88,000 last week has now surged by over 17% to sell as high as N100,000 in major markets and stores around the city of Lagos.

According to Nairametrics databank, the price of beans has increased by 140.96% year-to-date from N41,500 recorded as of December 2020 to sell for an average of N100,000 in Lagos. A further analysis, reveals the highly demanded food item has increased by 203% compared to the corresponding period of 2020.

In the same vein, Nigeria’s consumer price index report shows that the food index rose by 20.3% in August 2021, representing a decline compared to 21.03% recorded in the previous month.

It is worth noting that Nigeria’s food index has maintained double-figure growth since June 2015.

The galloping rate of food inflation has been attributed to a series of events that have further dampened the government’s effort towards food sufficiency in the country.

These events include insecurity, border closure, disruption in the supply chain, infrastructural problem, amongst others.