| Home | Politics | Human Rights | Water | Economy | Education | Sci & Tech | Culture | Sport |
02 October, 2007
The price of berbere (red pepper), an important ingredient in Ethiopian cuisine, has shot up once again this week both at Tekle Haimanot berbere terra in Addis Abeba and at Alaba berbere terra 315Km from the capital. As of Thursday, September, 27, 2007, one kilogramme of first grade red pepper sold at 55 Br at both markets, a 10 to 35pc increase from two weeks ago when a kilo sold at 50-53 Br or 850 Br per feresula (17 kilos) at Tekle Haimanot and 35-40 Br per kilo (600-650 Br per feresula) at Alaba.
This is not the first time the price of red pepper increased drastically as the spice has been characterised by price severe fluctuations for almost half a year. Beginning in March, red pepper has outpaced the general inflation hitting the country, especially in urban areas. The peak was seen in August when red pepper went for 65 Br per kilo (1,200 Br per feresula) at Mercato.
As the Millennium holiday approached, red pepper prices started to stabilise and actually began to decline in the last weeks of the 20th century; first grade red pepper (mareko) stood at 53 Br per kilo (650-750 Br per feresula) while a feresula of the lowest quality red pepper sold at 450-500 Br at Alaba seven weeks ago.
Two opposing reasons were given by an expert from the Ministry of Agriculture and Rural Development (MoARD) and red pepper traders for the price increases.
Asrat Zena from MoARD points to discrepancies between the prices farmers sell at and the increases that occur through middle men. Between the months of December and February of last year, farmers were selling one kilo of red pepper from seven Birr to 10 Br per kilo to traders and did not have the savings necessary to hold on to their harvests to wait for better prices due to the quick spoiling nature of the product after being harvested. Therefore, farmers in Amhara, Southern Nations Nationalities and Peoples and Oromia regional states, the predominant areas of red pepper farming, were unable to capture profits from the high prices consumers now face.
"Red pepper prices began to increase while in the hands traders after the farmers had sold," Asrat said, claiming stocks of the commodity now available were sold to traders at least six months ago.
Although Asrat said there was a decrease in red pepper production from one million tonnes in the 2005/06 fiscal year to 700,000tn in 2006/07, due to farms in certain weredas like Mareko and Meskan (near Butagera) being attacked by disease brought on by heavy winter rains, other weredas were able to produce more than what was being expected and therefore bridged the supply gap.
However, Keyru Hussen, a wholesaler at Alaba claims prices have risen due to supply shortages but insists new crops will stabilise prices.
"I expect the price to level out and begin to decrease soon since new red pepper crops will be available with the harvesting season in two weeks' time," Keyru said.
Merchants at Tekle Haimanot and other wholesalers at Alaba agree with Keyru's explanation of shortage in supply while small traders at both markets attribute the increase in price to rich merchants withholding red pepper from the market and others involved in the process like brokers, rural traders and wholesalers.
Whatever the cause, the fluctuating prices have been putting a strain on many consumers.
At Tekle Haimanot this week few people were seen buying red pepper in kilos as some decided to delay purchase after being advised about the possibility of declining prices in a few weeks.
Gedesae Tadese was hoping to buy five to six kilos of red pepper. However, after hearing the current price, she chose to wait a few weeks and left.
By HAWARIAT PETROS - SPECIAL TO FORTUNE