There are indications that many households may not afford rice to celebrate the coming yuletide, going by the steady rise in the price of the commodity in the last few months......Read The Full Article>>.....Read The Full Article>>
The price of a 50kg of rice, sold around N28, 000 before this administration assumed office in May 2023, has now skyrocketed to over N95, 000, a staggering 240 per cent increase.
Considered as the most common staple food in Nigeria, the price of a 50kg bag is currently hovering between N85, 000 and N100, 000, as against between N50, 000 and N60, 000 price in major markets around April and May this year.
The price drop in major markets at the period, falling by 20 to 30 per cent, brought relief to many households who spent as high as N88, 000 to buy the commodity early in the year, but their joy was temporary, as the price was jerked up after two months, majorly due to inflation.
While many households had resorted to the local rice as alternatives, they were however, disappointed to discover that the local rice did not fare better, as the price hovers around N80, 000 and N105, 500, depending on the market.
There are even fears that the price of the local rice will further surge in coming weeks, due to the looming increase in the price of locally produced paddy, which is expected to increase by approximately 55 per cent during the 2024/2025 season.
According to the Afex Wet Season Crop Production 2024 report, it indicated that rice prices saw a seasonal increase of 78 per cent, with the average price climbing to N630, 000 per metric tonne. The sharp rise was attributed to constrained supply in the market and increasing demand for rice, which exceeded available stock. The report further forecasts an additional seasonal price increase of around 55 per cent.
This development has given rise to questions from Nigerians on the whereabouts of the rice initiatives from some states, initiated few years back. While the Lagos State came up with the Lake Rice initiative, which later metamorphosed to Eko Rice, Ogun created MITROS rice, while the likes of Kebbi, Ebonyi and Kogi among others, also followed suit.
The purpose of these rice brands was to ensure food security by ensuring that Nigerians buy the produce at subsidised rate, at a highly reduced price, compared to what obtains in the market. This is coupled with the advantage of eating fresh rice, which are safe for consumption, compared to the foreign brands.
Currently, the rice brands have vanished from the market, except Lagos government, which has promised to flood the market this season. From all indications, there may not be any solution yet in sight on price reduction, as all indices have indicated otherwise. Even experts expressed fear that the hope of price reduction is slim.
The Chief Executive Officer, Green Sahara Farms, Plateau State, Suleiman Dikwa, attributed the price surge to general inflation, inadequate supply of paddy, and milling capacity constraints among others.
He said: “The overall rise in inflation affects the cost of living and production, leading to increased prices for goods, including rice. There has been a significant reduction in the availability of paddy rice, which is directly impacting the supply chain. Factors such as reduced cultivation areas due to security challenges and challenges in farming practices due to climate change have contributed to this scarcity.
“The milling capacity is more than the cultivated paddy. Therefore, demand for paddy pushing prices, leading to inefficiencies and bottlenecks in processing. This disparity between paddy supply and milling capacity exacerbates the price increase.”
Dikwa, however, expressed hope of a possible price reduction, noting that while immediate price relief may be challenging, there are potential factors that could contribute to a stabilisation of prices.
“If farmers can enhance production through better farming techniques and resource allocation, we may begin to see an improvement in supply. “There is need for government support – initiatives aimed at boosting local production and improving milling capacity could help alleviate some of the pressures on prices. If done directly, interventions on land preparation and harvesting could increase yield. As supply dynamics change, we may see natural market corrections that could lead to a gradual reduction in prices,” he said.
On his part, the Initiator and Chief Executive Officer, Betterment Hub a.k.a. Transformation Centre, Ibadan, Oyo State, Mr. Lawrence Omotayo Olajide-Taiwo, said the price surge is traceable to the exchange rate, high cost of transportation and other inputs. He said: “The season is also a probable cause due to the ceremonial attachment to rice and sub-optimal local production and distribution networks.
“The hope of price reduction soonest is slim. However, with a concerted, conscious and intentional focus on reduction in the cost of inputs through subsidy along the value chain and improvement in distribution networks, the price may come down in the long run.”
