The cause of high food prices in urban settlements, the nemesis of bad roads in rural areas

Urban dwellers have over the past years lamented high food prices, which in turn contribute largely to inflation in Ghana.

Actors in the agriculture value chain have decried the poor nature of roads, which they say is contributing to the current high food prices in urban settlements.

They are of the view that, while food prices have been on a downward trend on the global market for more than a year now, domestic food prices continue to skyrocket – making it difficult for Ghanaians to cope.

Inflation for June 2023 rose to 42.5%, compared to the previous month’s rate of 42.2%.

The increase was hugely attributed to higher food prices, with food inflation surpassing the national average at 54.2%.

The government statistician, Professor Samuel Kobina Annim highlighted the notable price increase in vegetables, specifically tomatoes.

The average prices of tomatoes saw a significant rise during the period under review.

The escalation in food inflation posed challenges for consumers, as it directly affects household budgets and the affordability of essential commodities.

Stakeholders in agric have advised policymakers to take a critical look at factors contributing to food inflation and they contend that bad roads in rural areas drive prices of food up in urban areas.

The resultant effect is high food prices causing inflation to continue to rise.

In the analysis of June 2023 inflation, there was a widened gap between food and non-food inflation which saw about a 20 percentage point change between food inflation and non-food inflation.

How bad roads contribute immensely to high food prices in urban areas

Bad roads play a major role in price hikes as drivers have to spend more on servicing their vehicles when transporting food items from farms to the market(urban areas), a cost that is passed on to the final consumer.

When roads are not good, it affects transportation and which then follows the chain – so the transport owner will pass on the cost and charge higher, and the driver will in turn pass it on to the trader and then to the final consumer.

When roads are smooth and good, maintenance cost is low, repairs are low – so you don’t have any extra costs(barring the cost of fuel).

The long chain in which foodstuffs have to travel from rural areas to urban settlers has contributed to the issue of unfair food prices on the market.

Anti-competitive devices, and weather patterns also largely contribute to food price hikes as it consequently reduces farm output.

On the part of poultry and other produce which is not from crop production, there is a trickle-down effect.

Measures that can be adopted to curb the situation include having a regulatory framework to control the market in terms of checking and comparing prices of items to ensure fairness in food pricing.

It has been suggested in several quarters the government should incorporate regulatory bodies that ensure fair pricing – which will in turn help grow the agriculture sector.