Enugu traders who stored beans for appreciation in the first quarter of this year are counting their losses following the crash in the prices of the essential commodity.
According to them, a bag of 100kg of beans they purchased for around N160,000 last year now sells at N140,000 in some markets.
Mrs Onyinye Ozioko sells beans at the New Market in Enugu. She said this year was the worst ever in her business.
In her words, “I stored 10 bags of 50kg beans. In the past years, the profits could be around 60% or more. I never thought about losses at all. Today, I am losing a lot per bag, and it is still counting. And this does not include the cost of transportation.”
Stephen Ogbu sells food items at Ogbete Main Market, Enugu. According to him, the crash in the price of beans is affecting his business adversely.
Quoting him, “Some of us borrowed to invest in bean storage. But look at where we have landed ourselves! I retail my own at huge losses. The problem with beans is that they can’t be stored beyond one year; otherwise, they will perish. This is the first time this kind of thing has happened in recent years.”
He attributed the fall to the flooding of beans from the North to eastern markets “rather prematurely”.
In his words, “While we are still planting due to delayed rainfalls in this part of the country, some parts of the North are already harvesting beans. The implication is that they began to supply their products when we were still planting. Under normal circumstances, we should be experiencing food shortages in the eastern parts of this country. We should be bringing our stored beans to the market to make gains. But the reverse is the case. Fresh beans flood the market while our stocked ones are underpriced.”
He said many were being forced to sell off to avoid more losses. “If you don’t sell, be ready to consume your beans or give them as charity. Very soon, they will be attacked by weevils.”
Dr Paulinus Eze is an economist. He called for investments in storage facilities in Enugu State and the entire eastern region. For him, “This is where governments should play key roles. If there were storage facilities, these perishable commodities would have been preserved further. The investors are losing because the longer the delay, the more losses they incur.
“Government agencies could also buy back from the investors at prices commensurate with what they invested. It is a special intervention in a fragile economy to encourage farmers and investors, as the case may be. If traders are discouraged from investing, farmers will suffer. The multiplier effect will be job losses and food insecurity.”
