EAC Grain Trade Barriers Stir Food Price and Security Concerns
Arusha, Tanzania
As East African Community countries prepare for the 2025–26 grain trading season, policymakers and farmers are battling persistent barriers to cross-border grain movement, including export permits and levies that are inflating prices and worsening food security risks.
Uganda’s imposition of a $10 per metric tonne levy on key by-products like maize and cotton bran — aimed at promoting domestic value addition — has increased costs for regional buyers such as Kenya. Meanwhile, Tanzania’s export permit procedures have restrained market flows, raising delivery costs and complicating supply chains.
Economists warn that such protectionist measures, although intended to develop local industries, may aggravate seasonal shortages, especially in drought-affected areas, and lead to consumer price spikes.
Why It Matters
Food security remains a top priority for governments across East Africa. Trade barriers at a time of grain shortage could undermine regional stability and household resilience.
What to Watch
- Policy negotiations within the EAC to ease levy and permit constraints
- Food price trends in major cities and rural markets
- Seasonal weather forecasts impacting harvests
