Legit.ng weekly price check: Price of food items rises in markets as dollar rate fluctuates- The plunging oil prices have increased pressure on the Naira, and the central bank of Nigeria are trying so hard to improve and deepen the foreign exchange market by improving supply of foreign currencies into the market amid dollar fluctuation - This is achieved by reducing the importation of items that can be produced locally and thereby increase export of local produce - The recent development so far has led to the increment in the cost price of goods in markets across the state - Legit.ng sought to find out from traders at Agric market, Agric, Ikorodu, Lagos how dollar fluctuation has affected importation of some goods like rice, their availability and cost of purchase Higher import costs, plunging oil prices coupled with a fall in the foreign exchange reserve brings about increased local production costs, driving domestic production thereby depreciating the Naira. During times of global economic uncertainty, the demand for dollars persists despite fluctuation in the performance of the economy, given the negative impact of COVID-19 on world economies. Read also Recession: Traders sit idly as buyers continue to reduce in Lagos markets. Dollar appreciates in a period of economic downturn as it is considered to be a haven currency and perceived to be less risky compared to holding local currencies which during crisis experience capital outflows. In recent times, the central bank of Nigeria has been under pressure to devalue its currency following fall in oil prices and demand for dollars hit high levels. Whilst local and international experts have called for a devaluation of the currency rather than the extreme approach the bank has adopted, the central bank of Nigeria, in response opined that devaluation of its currency is not necessary; rather they are focused more on demand management whilst discouraging imports amid dollar fluctuation. Following this development, the cost prices of imported goods have increased while local goods that are manufactured in the country rise drastically due to high cost of production and raw materials; this has led to shortages of some food items and scarcity of others. Read also Coronavirus: Traders reveal hike in cost of food items as Easter beckons This week, Legit.ng visited the market to investigate how the dollar fluctuation has affected the cost price of some goods especially rice, their availability and the cost of purchase as well as buyers' purchasing power. At the market, major food items have increased ahead of Christmas and New Year celebrations. Findings by our correspondent showed a significant rise in the cost price of perishables, rice (local and foreign), provisional items and other goods. Despite the continuous rise in the cost price of these goods, some traders have stock up their shops with more items as they anticipate high demand of these items this festive season. A rice seller at the market, informed of the availability of the foreign rice in the market now, following dollar fluctuation. According to him, the rice is available but the cost price increased a bit this week. He said: “Nigeria depends solely on importation of most goods, hence their cost price rises following the recent scarcity of dollar in the country. But the good thing is that foreign rice is very much available in the market because some of us have stock up our shops with more goods this season so as to meet buyers’ expectation and demand immediately we entered 'ember' months. Read also What do you know about the main top types of inflation? “Rice is a major item this season as it is one of the most sought after item in the market and this for sure makes it either 'affordable or expensive and available or scarce'. As it is now, some sellers offer for sale rice at different prices. Some sell at reasonable prices and others at exorbitant prices. But here at Agric market, a bag of foreign rice (Agric) cost N25,000 and a bag of foreign rice (Aroso) cost N29,000 as against its old price of N28,000 in previous weeks and N30,000 in previous months. “After the protest, foreign rice was very much available for us in the market at a reduced rate but with the way things are now especially with the dollar fluctuation, we might sell it at a higher rate few weeks before Christmas as some sellers would want to make more profit by adding to the cost price. Read also What is prime cost and how do you calculate it? “Buyers are purchasing foreign rice and this is because the local rice is very expensive due to high cost of production lately and the recent happenings in northern region of the country where rice are planted. This is really affecting the availability of local rice and its production in the country lately. But for foreign rice, it is available and the sales quite encouraging.” Another trader at the market, who sells rice, beans, garri and other food items, lament over the rising cost of local goods in the market, especially local rice and how it has affected the purchasing power of buyers in recent days. “There is a twist in the cost price of goods in the market lately. In fact, imported items are more affordable than local produce. Presently, we worry more on the rising cost of local produce than imported goods. Local rice are sold from N25,000 upwards and beans, their cost price continues to rise but garri maintain stability in its prices. People are buying foreign rice to local rice more because the difference is not much. Read also Factors affecting agricultural production in Nigeria “Following the dollar fluctuation and the recent killings in the northern region of the country, some farmers are now scared of going to the farm and this affects food production on the long run. If nothing is done in earnest, this will result into further scarcity of local goods especially food items and shortages because the ones that are available in the market would be sold at a higher price and suppliers would hoard the ones they kept and release it on sale at increased prices in the coming days. “Most buyers prefer foreign rice to local rice and foreign rice is available in the market now, the supply is very high but the price is not fixed as it fluctuates depending on the cost of purchase, the market visited and the choice of the seller as well as demand level as some rice sellers can decide to sell at lower prices and others at higher prices,” A rice seller at the market explained to our correspondent. Read also What is fuel subsidy history in Nigeria? When dollar fluctuates often, some goods like provisional items that are imported into the country experience spike in prices and the ones that are manufactured here in the country are offered for sale at exorbitant prices. A provisional seller at the market explained to Legit.ng how the sellers are faring following dollar scarcity and buyers reaction in recent days. He stated thus: “The recent development has affected even importers as well as clearing agent in the country. they are having a hard time with the dollar scarcity. The items that are manufactured in the country are sold at higher prices even before this recent development amid low oil prices. “Most goods in the market now are very expensive and the ones that are not, their prices increased a bit. The goods we sell are imported only few are manufactured here and are expensive because the raw materials used in producing them are expensive too. Read also How to succeed in network marketing in Nigeria: 21 useful tips “Dozen price of dairy products increased by N50, N100 and some N200 while items that are sold from 50 gram and in tin are offered for sale by over 10 percent, 15 percent and 20 percent respectively depending on the brand and the buyers’ preference. The items that were sold from N650, N750, N800 and N900 respectively have increased to N1,200 and N1,500 respectively while the ones that are sold from N1,300 and N1,500 upwards are now offered for sale from N2,000, N2,500 and N2,700 upwards. This is also applicable to body cream and some quality bar soap. “Buyers are not finding it easy to cope with the new prices of the goods but they are still patronizing us daily as they have no option. As traders, it is really not easy to sell off these goods in this pressing time but we are selling and making sales because this is our season as we sell varieties and this makes the business boom in tough times.” Read also Average cost of living in Nigeria: how much should we earn to live well? It is no longer business as usual for perishable sellers this festive season as they complain of rising cost of perishables and low purchasing power of buyers. At the market, some items that were affordable have witnessed about five percent increment this week as informed by the sellers’ following low supply. A tomato seller at the market explained in detail the recent change in the cost price of perishables. “The supply of perishables in the market now is very low leading to inflating price of the items. We purchase perishables at Mile 12 international market because it is sold at wholesale prices. This week, the prices of goods are not stable only few maintained their initial prices hence they fluctuate. “Due to the increment in the cost price of perishables in recent times, the manner in which they are sold now varies. The baskets are now broken into smaller sizes depending on the financial strength of the traders that wants to resell. We have the plastic basket and we have the popular basket that is the main basket. Read also Role of ☘ Agriculture in today economy of Nigeria “Some of the tomatoes are imported from neighbouring countries and others from states within the country. A plastic basket of tomatoes that cost N5,000 in previous weeks, now cost N7,000 and N8,000 while the popular big basket of round-shaped tomatoes are now selling from N18,000 and N20,000 upwards depending on the size. “For the watery tomatoes, a big basket is sold from N10,000, N12,000 upwards depending on how fresh the tomatoes is and small basket from N8,000 and N7,000 below. For pepper, there’s a slight increment in its price this week, a big bag of pepper that was sold for N13,000 before, now cost N15,000 now. Onion is very expensive in the market and the cost of purchase keeps rising. A bag of dry onion is sold from N80,000 and N85,000 upwards while the new onion is sold from N70,000 upwards. “For sales, buyers are buying according to the cash in hand and their preference differs. Most buyers prefer the Jos and Benue tomatoes more to the watery tomatoes. So if a trader is offering for sale only watery tomatoes, then he/she would not make good sales by the end of the day because not all traders can afford to buy tomatoes or onion at a higher price like this. Another way we make sales is from those buyers who order online and our loyal customers who are wealthy. This period, sales have been very discouraging but we are sure of making good sales as the festivities draw nearer,” The tomato seller informed. As some traders groan over increment in the cost price of goods in the market, others are expectant of better sales in week’s ahead especially clothing wears, accessories, shoes, bags and foodstuff items being major pick during festive season. At Idumota market, Lagos Island, fashion items have increased by over ten percent; sellers’ blamed it on foreign exchange rate, coronavirus pandemic and the economy. “There’s been a significant rise in the cost price of our goods especially the imported ones due to the effect of the pandemic on the economy and the foreign exchange rate. Most goods in the market here are imported and are very durable. From beauty products’ to fashion wears and accessories, most are supplied from other countries and are very expensive now. “Some of the goods are not even available in the market this period and the ones that are supplied to us now are given to us for resale at an increased rate and this is not easy for us because we have to sell to our customers at a reduced price due to competition with online traders and stores that are offering these goods at reasonable prices with end of the year sales and discount. “Some old goods are sold at a reduced price now while new goods and items of new designs are sold at an increased price due to the season but definitely after the season, their prices will drop. “As it is now, sales is not really encouraging and we are not making profit as we ought to considering the season but we are hopeful of a turnaround as regards sales in the coming weeks before Christmas,” A trader who sells shoes, bags and slip-on at the market told Legit.ng. Similarly, a foodstuff dealer at the market, express worry over the rising food prices in the market lately but anticipate improved sales this yuletide. She said: “The price of most goods continues to rise in markets across the state and this is due to known factors like insecurity, high cost of transportation and high cost of raw materials for production with the negative impact of the pandemic. “Foodstuff items are one of the most picked items in the country during festive season, this makes us very optimistic about sales in the coming days before Christmas and New Year celebrations. Right now, some goods are gradually going out of season and some are coming into the market giving way for affordability of old items. “In previous weeks, buyers are not buying as they would love to due to low cash inflow. It is indeed a challenging period for us all in the country but we are hopeful of a higher patronage of food and foodstuff items as our customers prepare for the celebrations ahead.” There is a lot of fatigue globally occasioned from the effect of the coronavirus pandemic on world economy and Nigeria’s currency is indeed in the grip of tough external pressure even as persistent increase in the cost price of all goods in the country now, may possibly discourage buyers from purchasing items in large quantity this yuletide. INTERVIEW: Why onion is now expensive in the market - trader via Legit TV Source: Legit.ng - The plunging oil prices have increased pressure on the Naira, and the central bank of Nigeria are trying so hard to improve and deepen the foreign exchange market by improving supply of foreign currencies into the market amid dollar fluctuation - This is achieved by reducing the importation of items that can be produced locally and thereby increase export of local produce - The recent development so far has led to the increment in the cost price of goods in markets across the state - Legit.ng sought to find out from traders at Agric market, Agric, Ikorodu, Lagos how dollar fluctuation has affected importation of some goods like rice, their availability and cost of purchase Legit.ng Legit.ng Legit.ng