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Price monitoring and analysis country brief - Somalia

Year of publication 2011

Author Agriculture and Economic Development Analysis Division

Product type Document

Category Other document

Edition 1

Synopsis (short abstract) Although some local cereal prices declined slightly in August thanks to the arrival of new supplies from the Gu harvest, prices continue to be high. Moreover the slight reduction will not last long as local supplies continue to decrease. An estimated 4 million people are facing food crisis in Somalia, with 750,000 people at risk of death in the coming four months. FSNAU has declared famine in six areas of the country. Drought and civil insecurity are forcing tens of thousands of people to fl ee within and outside the country; by the end of August the number of displaced people increased to some 1.7 million. The crisis has left people in dire need of assistance while conflict exacerbates the situation and hampers humanitarian interventions.

Language English

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    Prices registered a sharp decline since September; however maize prices in Mogadishu have shown a highly volatile trend. Despite the declaration of the end of the famine conditions, an estimated 2.32 million people are considered in need of food assistance. Conflict, insecurity and drought have been major drivers of food insecurity and related displacement. In this period there have been no reported government policies in agriculture and food security.
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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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    Maize prices increased slightly, with the highest prices recorded in the south where the purchasing power of poor and very poor households is limited. Overall food security is satisfactory, but areas of concern remain in areas affected by production losses and high food prices. Despite a dry spell and localised flooding in the first months of the year, national cereal production increased by 5% in 2011. The Government has implemented measures to support production, but reduced the subsidy on wheat. Social support programs are in place.
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