Business and Economy

COVID Induced Lockdown Triggers Sustained Decline in Commodities Market Activities

The AFEX Commodities Index composite closed at 163.65 points in the week under review. The index performance remained stable across all commodities covered by the index. 

In the open market, the supply of commodities has been greatly affected by the lockdown currently taking place in parts of the country. Restriction of movement has stopped many farmers from bringing their commodities into the market and this has led to a shortage of supply in the market. The number of deals is reducing in the market as farmer prices are getting higher than quotes from buyers.

In addition to the shock posed to supply, logistics services have also witnessed stumbling blocks despite the exemptions given to agro related enterprises. In response, logistics prices have spiked for key routes, increasing the economic woes inflicted by the COVID-19 outbreak.

Merchant’s Sentiment from Sabua Kauri Market, Kaduna State: “Because of the Lockdown, there is less supply of commodities in the market and prices are high. Farmer prices are getting higher than processor quotes making it difficult for me as a merchant to secure goods. Even when we try to supply, our trucks are not allowed to travel interstate due to the ban on movement”

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