Food prices remain high with the start of the lean season approaching

• In September, most households will likely continue consuming food from the near-average 2023 harvest, along with typical market access. Households not engaged in crop production are relying on market purchases, with households across the country continuing to access normal income from casual labor, remittances, crop sales, and petty trade. The normal access to food and income supports Minimal (IPC Phase 1) outcomes. Additionally, the upcoming wheat harvest is expected to begin in October, with the crop in good condition, further supporting household food access and income from crop sales. By late September, the government had not yet started the distribution of maize and beans to vulnerable households that had been procured from farmers.  
• Across Lesotho, food markets are functional and stable, along with imports from South Africa. In August, a 12.5-kilogram bag of maize meal was retailing in Maseru at 110 LSL (~5.70 USD) compared to 93 LSL in 2022, with maize meal prices increasing by around 9 percent from July to August. The price increase is likely driven by increasing demand as households increase their dependence on market purchases with the start of the lean season approaching. Similarly, edible oil prices increased by around 12 percent from July to August but remained around 16 percent lower than prices in 2022. In August, annual food inflation was around 6 percent, with headline inflation at 5.2 percent after two months of consecutive decline. These inflation rates are the lowest rates since early to mid-2020. Although households are largely accessing typical sources of income, the increasing food prices are likely to undermine the purchasing power of the most vulnerable households, particularly as poor households increase their dependence on market food purchases during the lean season.
• Domestic economic activity expanded in August 2023, driven by growth in the construction and services sectors, particularly transport and financial services. However, this growth was moderated by persistent weakness in the manufacturing sector driven by slowing global trade and demand. The continued poor performance of the manufacturing sector could negatively affect employment and stifle growth in the incomes of poor households. Oil prices are also expected to increase in the coming months, lifting Lesotho's import bill and putting pressure on domestic fuel prices. Rising transportation costs will pressure inflation rates and erode the purchasing power of poor households.  
• The Ministry of Agriculture has procured fertilizer and seeds to sell to farmers at subsidized prices in preparation for the 2023/24 agricultural season. Each farmer can buy 10 bags of fertilizers and five bags of seeds. Basal and top dresser fertilizers are being sold at 89 to 124 LSL per 50-kilogram bag (4.56 to 6.36 USD), with yellow and white maize, beans, sorghum, wheat, potatoes, and fodder seed also being sold at around 75 to 375 LSL per 10-kilogram bag (3.95 to 19.23 USD) The sales of inputs started in the highland districts (Mokhotlong, Thaba-Tseka, and Qacha's Nek), with sales in the lowlands (Botha-Bothe, Leribe, Berea, Maseru, Mafeteng, Mohale's Hoek, and Quthing) expected to start in October. The access to subsidized agricultural inputs is likely to increase agricultural activities and access to income, particularly planting in September. 

Recommended citation: FEWS NET. Lesotho Key Messages August 2023: Food prices remain high with the start of the lean season approaching, 2023.