- The fluctuation in the cost price of goods in the market in recent times has been attributed to the dollar rate, the economy and insecurity in the country.
- Goods that are produced locally are very expensive, due to the high cost of materials used for production and low supply of the ones purchased abroad
- As prices of some major goods continue to rise, this week, Legit.ng visited a market in Lagos state and found out from traders the current cost price of garri
The cost price of some major goods in the market have continued to rise in major markets across the country despite continuous effort by the government to boost locally made produce.
Checks by Legit.ng showed the fluctuation in the cost price of some basic food items and an increment in others.
Legit.ng weekly price check: Traders in Lagos market groan as price of bags skyrocket ahead of Yuletide
At the market this period, beans is the new gold as the bag sells from over N100,000 and foreign rice, a bag sells from 30,000 while a bag of local rice sells from N25,000.
With the recent price changes, traders are finding it difficult to blend in and even sell their goods as the changed is affecting the purchasing power of buyers.
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Ahead of the yuletide, some traders are optimistic of better sales while others lament as they cannot even boast of stocking up their shop for the season, due to the present economic realities.
The new normal now is the daily rise in the cost of all goods in the market. In view of this, traders’ advice buyers to come to the market with extra cash to as the cost price of the goods are no longer fixed.
It was gathered that food prices that recorded hike in prices before, have dropped due to the supply level. The cost price of items like pepper, tomatoes, vegetables and garri have dropped in the market this week as others rises further.
Legit.ng had a chat with some traders in the market and they explained reasons for the drop in price of some items and increment in others.
A perishable dealer at the market said, the supply level of perishable is encouraging in recent days as they now sell from N100 but the watery ones while the Jos and Benue tomatoes are sold at an expensive rate.
The trader who hailed from the northern region of the country said:
“Tomato is very expensive but the watery ones are supplied in large quantity this period. Despite the supply level, we record loss because the sales level have dropped now as buyers are now complaining bitterly over low cash to purchase goods.
“This period, a basket of watery tomatoes are sold from N10,000 upwards, the fresh ones but the smashed ones are sold from N8,000 while the Jos and Benue tomatoes, their supply is a bit low and they are sold from N14,000, N15,000 upwards.
“For pepper and onion their cost of purchase is still fair as they are not too expensive. Presently, we sell pepper from N100 and onion from N100 upwards. But the size of the bag and the basket determine their cost price; as they range from N12,000, N15,000 and N18,000 upwards for pepper while a bag of onion now sells from N22,000, some traders says onion is expensive.”
For a trader who sell food items at the market, the goods are supplied accordingly but the level in recent weeks vary due to the security issues in some parts of the country.
The trader opined thus:
“Following the rising security challenges in the country, the supply level of food items differ. Sometimes, they come in large quantity and sometimes the supply level is low because some suppliers are afraid of the dangers on the highway now in, this is one reason food items rise in the market.
“For some of us, we purchase goods that would last for a while but we often restocked anytime they are supplied in the market. If the goods stay longer, they get bad so e purchase the items with wisdom. Buyers are purchasing the goods but the profit we make on daily basis is quite encouraging now as we must all eat to survive the challenge of the days ahead.
“This week, a bag of garri dropped but the cost price of beans rises further as a bag of oloyin beans is sold over N100,000 while the white beans are sold from N75,000 and N80,000. The brown beans sell from N100,000 upwards. A bag of rice sells from N30,000 and N25,000 upwards while a bag of garri now sells from N13,000 and N12,000. But the sales level is rising this period.”
Another trader who sells garri in the market explained to Legit.ng the reason for the drop in the cost price of garri.
According to the trader, suppliers’ bring in gods that are available from the farm and the quantity they received determine how expensive or affordable they can be.
She stated that:
“If the suppliers come to the market with enough goods, they would sell at a reduced price but if the goods are limited, they would sell at an expensive rate. Presently, rice is expensive foreign and local rice but it will be affordable before yuletide; supply of rice would rise in weeks ahead.
“For beans, it is a bit scarce and the supply very low hence it is sold at an increased price. But for garri, the cost price fluctuate due to the processing, the items used in processing is also very expensive. For yellow garri, it was very high because of the oil being used to fry, hence the price skyrocketed in previous months. But it is sold at an increased price but still very reasonable.
Updated: Legit.ng weekly price check: 25-litre of vegetable oil sells for N26,000, palm oil N24,000 in Lagos market
“Now, a bag of garri (white) is sold from N13,000 but some traders sell from N12,000, the market visited determine the cost price as well as the size of the bag. But the yellow garri is sold from N14,000 per bag as against its previous price of N15,000 and N17,000 per bag. The goods in the market are all expensive but traders are hopeful as some would become affordable before December.”
At the market, yam is very expensive and some traders do not even have enough quantity for sale as they attributed the increment to the high cost of purchase and the supply level.
A yam seller at the market told our correspondent how they sell the item in recent days. The mother of four said:
“Good and tasty yam is very expensive and some of us do not have enough quantity to sell to our loyal customers as the supply we get in recent times, is not encouraging. Since it is what we do for survival, we sell according to what was supplied to us.
“Sometimes, they bring yam to the market but they don’t get to offload the truck, this affects us too as traders, until it is offloaded, before we would be able to buy and resell. But at the moment, yam is very expensive. It is only potato that is a bit affordable but yam, the cost of purchase is high. This has resulted to the increment in the cost price for some time now.
“The advice I would give buyers this period, is to always come to the market with the mindset that the cost price of goods is no longer stable as it changes unexpectedly.”
Still at the same market, the cost price provisional items increased by over five percent as some traders have run out of certain items in their shops due to inflating prices.
At the moment, some traders blamed the economy for the high cost of food items and crippling sales while others while others attributed the present market situation to the dollar rate and the devaluation of the naira.