- The cost price of goods does not only affect the profit margin of traders, rather the purchasing power of buyers ave been affected greatly
- The recent hike in the cost of the item has led to low patronage and a drop in the purchasing power of buyers
- At the market this week, Legit.ng sought to find out from traders’ reasons for the rising cost price of major food items and its impact on consumers' demand pattern
Traders in Lagos market have not been having a smooth ride all thanks to the rise and fall of food prices.
The situation is different in some markets that offers goods at retail prices as buyers prefer the major markets where goods are offered for sale at wholesale prices.
The recent weeks have been a tough one according to traders who spoke with Legit.ng at Ojota market, Lagos.
Food items rise
The cost price of major goods like rice, ogbono, egusi, garri and crayfish have increased drastically.
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The cost price has therefore affected the level of sales of the traders with some lamenting reduction in their profit margin.
While the politicians are busy with the electioneering activities in the polity, traders and buyers are trying to understand really, the hike in the cost price of food items.
Prior to this period, food inflation has been linked to the border closure and reopening, and the effect of the coronavirus pandemic on the global economy but the heightened insecurity in Nigeria, has led to recent attacks on farmers and activities in their farmlands, resulting to hike in the cost price of major goods in the market even as some business owners count their losses daily.
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Prices of goods in the past month
At the market, foreign rice has increased and the demand fair over local rice due to the present supply level resulting in to drop in the demand for local rice.
A trader at Ojota market explained the cost price of rice, beans, garri, and others
At Ojota market a trader in a chat with Legit.ng disclosed that the cost of goods now determines the cost price it would be offered and as well the profit.
"The cost price has increased in recent days same with garri while beans has maintained its prices.
"A bag of foreign rice sells from N29,000 and N30,000 upwards while a bag of local rice sells from N27,000. A bag of garri sells from 14,000 upwards for yellow garri while white garri is sold from N13,000 upwards.
"The issue is that we make sales because buyers have no option than to eat hence they purchase goods but the demand for the goods has dropped.
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"The thing about our business is that, if we purchase goods at a reduced price we will be glad because we will sell and make profit but if we purchase at an expensive price, we will not record profit because buyers would complain and we will end up selling so we won't end up in debt."
Ogbono is the new gold in Lagos market
There is an increment in the cost price of foodstuff items at the said market, and sellers are of diverse views. Legit.ng had a chat with some traders, and they revealed the recent price of the items couldn't ascertain the reasons for the hike in prices.
A trader who hailed from the eastern region of the country told Legit.ng that:
"Ogbono is the new gold in Lagos market now.The cost price of ogbono has continued to rise in recent weeks. Presently, a bag of Badagry ogbono sells for N200,000 and a bag of local ogbono sells from N180,000 and N160,000. This is the amount we currently buying now.
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"Sales has been hanging, our leaders are only interested in 2023 election while goods in the market continue to rise further. It is a tough situation for us at the moment."
Another trader explained
Another trader at the market who pleaded anonymity revealed to Legit.ng the buyers' reaction to the cost price of ogbono and egusi.
The trader who is of the Igbo extraction said:
"Every food item and foodstuff items have become expensive and buyers are coping with the latest trend of the rising cost price of goods.
"A bag of egusi that contains 48 paint buckets is offered for sale at N150,000 upwards while a paint bucket of ogbono I sold last was from N6,000 upwards but now it has increased drastically.
"Most of our goods are purchased directly from the east and the interesting thing is that the goods are local produce yet they are very expensive but we are coping because we don't know exactly what has led to the increment in the cost price of these goods."
The hike in the cost price of perishable goods revealed
Another trader at the market who is of a different view, informed that the soaring price of goods is seasonal and also due to rising security issues in the country.
“Another major factor that has led to this price increase is seasonal factors. This is not the season where tomatoes would be supplied in large quantity into the market rather it is that period where the items are sold higher than the market price following weather condition resulting to supply issues. We are certain in months ahead; the cost price would drop and supply level would be higher.”
A buyer reacts
For a buyer at the market who pleaded anonymity, the hike in the price of essential commodities in recent days has affected the consumption pattern of her family.
“There is nothing as difficult as adjusting to the pattern of feeding this period; it is tough.
“A regular visit to the market does not change the budget from home. This period, you get to the market, you are faced with an increment in a particular commodity whose cost price was relatively low during your last visit. Then you will be surprised as we have no choice but to purchase goods to feed and for survival.”
Another development, is fashion items, accessories and wears. The buyers and traders are very busy and were reluctant to speak with Legit.ng, but informed of a drastic increase in the cost price of the items for the season.
The cost price of bags that are in high demand this season is high as some buyers lament, traders worry about the high cost of purchase occasioned by the fluctuation of foreign exchange. Shoes are sold from N6,000, N8,000 and N12,000 upwards while quality bags are sold from N8,000, N9,000 and N15,000 upwards, especially the branded ones but for slippers, they are sold from N4,000, N5,000 and N7,000 upwards and the items of low quality are sold from N3,000 and N4,000 upwards.
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With the present market condition, nothing seems to have changed in the country as food prices continue to soar.
Saddened by this development, the traders in the market are seeking the true one who would turn around the nation’s economy from the further collapse in the forthcoming general elections.
At the market this week, some seasonal goods are expensive and others fluctuating, according to checks by Legit.ng, the price variation is informed by the exchange rate, the security situation of the country and the grappling economy.