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Price monitoring and analysis country brief - Lesotho

Year of publication 2011

Author Agriculture and Economic Development Analysis Division

Product type Document

Edition 1

Synopsis (short abstract) Although domestic retail prices of maize meal have remained stable during the first half of 2011, prices are high constraining poorer households' access to food. According to the 2011 Lesotho Vulnerability Assessment Committee (LVAC), an estimated 514,000 people are food insecure. The heavy rains and flooding seriously affected agriculture, dampening cereal production and widely damaging the livestock sector. The government is supporting agricultural capacity through provision of inputs an d assisting the livestock sector through provision of veterinary products.

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    Price monitoring and analysis country brief - Lesotho 2012
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    Maize meal prices spiked in September and October, but declined in December; wheat and rice prices remained almost stable throughout the year. As a result of the poor cereal harvest in 2011, the number of persons in need of food assistance is estimated to be 514,000 along the whole 2011/12 marketing year. Insufficient rains during the first half of the 2011/12 agricultural season followed by heavy rains and floods caused extensive losses to the agricultural sector. The Government togethe r with international agencies supports production and assists the most vulnerable, through social safety nets.
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    Prices of rice and wheat remained stable however, experienced some fluctuation in November and December. The overall food security situation is favorable however, due to low cereal production, it remains a concern in certain districts in Mid-Western Mountain and Mid-Western Hill. Natural calamities have affected people's food security in recent months; moreover the political situation remains tense. The Government has in place several safety net schemes to support vulnerable groups; the in ternational community is also helping to assist people affected by natural disasters.
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    The sharp increase in staple food prices reached its record level in July leading also to considerable deterioration of terms of trade for pastoralists. An estimated 3.75 million people are classified as food insecure. Major concerns are for the over 490,000 Somali refugees who are in dire need of emergency assistance. The food security situation continues to deteriorate as a consequence of persistent drought condition combined with high food prices, insecurity and displacement. The worst af fected areas are the northern and eastern parts of the country. The Government waived the import duty on maize to ease prices to consumers, while humanitarian aid agencies and UN institutions are assisting the population.
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