Business Africa
Local Rice Farmers Smiling To Bank As Demand For Local Brands Surge
Local rice farmers and millers are smiling to the bank as border closure bolstered demand for local rice, research has shown.
The inability of importers and smugglers to access the Nigerian market following the decision of President Muhammadu Buhari to close the nation’s land borders has led to the surge in the price of foreign rice and eventually forced many Nigerians to shift preference to more pocket-friendly local rice.
“A whole lot of rice farmers are increasing their production areas because there is a huge market for paddy since the border closure,” Aminu Goronyo, national president, Rice Farmers Association of Nigeria.
The price of local rice has declined by 19 percent in the last 10 days due to the unusual heavy harvest by farmers struggling to meet growing demand.
“This is because millers are patronising rice farmers now and off-taking all that the farmers produce immediately,” stated Goronyo.
According to Goronyo, prior to border closure, farmers were holding more than 20,000 tons of paddy as millers were not buying due to weak demand. Largely because of Nigerians preference for imported rice.
However, the surge in the price of foreign rice after land borders were closed has paved way for paddy. While the price of a 50kg local rice like Mama Pride, Umza, Classic, Mama Choice, Lake Rice, Three Brothers, Al Hamsad, among others, that rose as high as N24,000 has started moderating in the last 10 days and currently selling for N19,500.
The Chairman of Integrated Rice Processors Association of Nigeria, Mohammed Abubakar, said: “Yes, the prices of rice went up immediately after the border closure. The prices have peaked and are now coming down.”
“We would be able to meet demand and Nigerians have no need to worry about Christmas demand. Our members are already increasing their capacity,” Abubakar added.
Farmers are now shifting to rice cultivation because of the growing demand for local rice.
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Muhammed Augie, chairman, Rice Farmers Association, Kebbi chapter, said: “Since the surge in prices, farmers who have abandoned growing rice have returned and even other farmers are shifting to rice cultivation because the market is there.”
“A bag of paddy rice now costs N8,500 as against N10,000 sold two weeks ago. This is because we are growing more and the harvesting season just commenced,” Augie said.
The Nigerian Union of Petroleum and Natural Gas (NUPENG) has issued a two-week strike notice to the federal government, raising the possibility of fuel scarcity across the country in the coming weeks.
This was contained in a statement jointly signed by NUPENG President, Williams Akhoreha, and General Secretary, Olawale Afolabi, Monday.
The union said the notice of strike was one of the decisions reached at its special national delegates conference Thursday.
It listed non-payment of workers’ salaries and benefits, among others, as reasons for its resolution.
One of the issues, NUPENG said, was the outstanding payment of terminal benefits to its members that were declared redundant in 2012 by the management of Chevron Nigeria limited.
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The Lagos Chamber of Commerce and Industry has said it aims to promote intra-African trade at the 35th edition of its annual Lagos International Trade Fair.
The Director-General of the LCCI, Dr. Chinyere Almona, said in a statement on Wednesday that this year’s edition would feature business-to-business meetings simultaneously with the general interest fair.
She said, the focus this year is to encourage intra-African trade and position Africa as the preferred investment destination and an economic powerhouse adding that The exhibition will also facilitate networking amongst exhibitors and between exhibitors and visitors.
She said corporate organisations, including multinational corporations, indigenous conglomerates, financial institutions, and small and medium businesses, had indicated interest in participating at the fair and relevant agencies and departments of government would also be available to exhibit and attend to other exhibitors and visitors.
She said agencies that had confirmed attendance to provide information and educate exhibitors and visitors were the Bank of Industry and Nigerian Export Promotion Council, among others.
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The Nigerian Export Promotion Council has organised a workshop for over 60 operators of Small and Medium-scale Enterprises in Osun State on how to make their products fit for export.
The workshop, which was held in Osogbo, was tagged ‘Facilitating strategic export market access programme in collaboration with the trade support institutions.’
The Assistant Director, Policy and Strategy Department, NEPC, Aliu Saddique, said the participants were SMEs owners with the potential to export to the international market.
He said the council was using the model developed by the Centre for the Promotion of Imports from Developing Countries to train the participants so as to enable them to have a good understanding of the demands of the international market.
While speaking, The Osun State Commissioner for Commerce, Cooperatives, Industries and Empowerment, Dr. Bode Olaonipekun, called for serious planning ahead of the time when crude oil would no longer bring revenue for the country again.
Olaonipeokun, who also blamed the current economic hardship on the neglect of non-oil export, said planning for the era without oil must start immediately to avert economic crises.
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