Lira city traders are now crying as customers cry more due to the increase in prices of basic commodities.
By Acipa Doreen
Lira – February 18, 2022: Small scale traders in Lira City are crying about insufficient supplies of basic domestic commodities after prices of some goods shot up.
The prices of bar soaps, for instance, have highly increased within the past few weeks from both retail and wholesale shops.
The increase has forced roadside traders and hawkers to start crying while hiking the prices.
Some small retailers have closed up as they are unable to purchase from the wholesalers who say distributors have “closed”.
Due to the high costs and some conditions for ordering, few traders who spoke to us said.
An assessment done by TND News Doreen Acipa reveals that 1kg of white star soap has risen from shs3,500 to shs 6,500, Mukwano bright star 1kg has risen from shs 4,500 shs5,500.
Kuku has also risen from shs2,000 per bar to shs 4,000.
Also, blue magic soap 1kg was being sold at shs 3,500 but now the price has risen to shs 5,500 and shs6,600, respectively.
Star natural has risen from shs4,500 to shs5,500.
Previously, a dozen of white stars used to cost shs38,000 but now it has risen to she56,000; a box of Kuku was sold at shs45,000 but now goes at shs84,000.
Blue magic used to be at shs30,000 per box but now it’s at shs50,000; Mukwano was at shs28,000-30,000 but now it has risen to shs50,000.
In an exclusive interview with Patrick Ekanya, a trader who deals in general merchandise including soaps at Oyam Road in Lira city, the increase in the price of soap is already worrying, adding no clear reasons have been given to them.
“We used to sell a piece of soap-like Kuku at shs500 but now we are selling it at shs1000. A box of Kuku we are buying at shs 79,000-shs 80,000 yet we used to purchase it at shs45,000,” Ekanya told TND News Doreen Acipa.
“I have started losing customers because they think I am only cheating them with the price,” he added.
He appealed to the government and the companies producing soaps to at least give them a clear response.
“We are not contented with the towering price of soap because when you purchase Kuku (soap) a box at shs80,000 and you sell to a customer at a cost of shs 4,000 a bar, a customer decides to leave because of the high costs.”
“I am making losses,” Ekanya revealed.
Jane Adongo, another trader at Noteber Road, behind Lira main market said they are also facing challenges from some companies that produce soap.
These companies, she said are asking them to buy cooking oil first in order for them to deliver soaps.
“When I’m ordering for ten boxes of soap, it is a must that I should order for 10 boxes of cooking oil,” Adongo gave an example.
“Since morning I have only received two customers who came to buy soaps. Many customers do come but when they are told the price of the soap, many of them go away,” she added.
Florence Okello, a resident of Aguru cell, Boroboro East ward in Lira City East Division, said, “I came to buy a soap but upon reaching the shop, I found that the price has risen to shs6500.”
“Now, I have come all along from the village to buy some items for my kids who have been chased away from school and also in need of items like soap where I am going to get that money from?” she asked.
One of the distributors within the city who preferred not to be named, said, “I have stopped distributing soaps due to the rise in the prices and the condition of buying an equal quantity of cooking oil when ordering for soaps.”
Soaps sell very fast but she can’t make an order because it must come with cartons of cooking oil yet the old stock of cooking oil is still stocked in the shop.
When the price begins to drop, then the old stock will be too much, she will be incurring huge losses.
Another distributor at Cukteatat in Lira city, said the companies who make soaps in large quantities like BIDCO are crying of lack of raw materials.
He added that the communication gap is one of the challenges.
“I woke up and received a call from a manufacturing company saying that the price of soaps has increased,” he explained.
Recently, several oilseed factories in Lira city were closing down due to the shortages of raw materials for running their productions, while others are operating below 20% capacity.
These manufacturers of bar soaps, shea oil, and cooking oil cited unfavorable weather conditions coupled with Covid-19 that saw a reduction in soybean, sunflower, and shea nuts productions.
Operations of fewer factories and shut down of others have seen a sharp increase in the price of commodities used daily.
While addressing journalists at Totco offices in Lira city during an engagement meeting with farmers and the officials from Uganda Development Bank, on January 14, 2022, Paul Omara, the CEO of Ngetta Tropical Holdings Limited also the Member of Parliament for Otuke constituency, said their third-quarter sales have been hit significantly due to a shortage in raw materials.
Ngetta Tropical Holdings Limited is a producer of Virgin Gold cooking oil.
Further, Totco said she was in contact with Tanzania to supply sunflower to the factories.
According to Omara, Lira has over 40 factories.
Meanwhile, in a bid to solve the problem, Uganda Development Bank, the country’s development financial institution approved projects worth shs926 billion of which a total of shs589 billion have been disbursed into the Ugandan economy to support businesses during the COVID-19 pandemic period.
Patricia Ojangole, the Managing Director of the above bank said funds were disbursed to support the resilience and fast recovery of the economy during and post the pandemic.