FG Moves to Crash Rice Price, Purchases 58,500 Tons to Saturate Market

FG Moves to Crash Rice Price, Purchases 58,500 Tons to Saturate Market

  • The Nigerian government said it made bulk rice purchases to the tune of about 58,500 tons from farmers
  • The minister of Agriculture and Food Security, Abubakar Kyri, disclosed that the intention is to crash the price of commodities in the market
  • He said the government has also asked the World Food Programme to stop purchasing bulk food from farmers so as not to worsen the current food inflation

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian government has purchased about 58,500 tons of milled rice from the Rice Farmers Association to stabilise the market nationwide.

The minister of Agriculture and Food Security, Abubakar Kyari, disclosed this and said the government has asked the World Food Programme (WFP) to stop purchasing food from local markets so as not to worsen the current food scarcity.

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Rice prices to crash after FG's announcement of bulk purchase
FG announces the purchase of 58,000 tons of rice to cash prices. Person in the image not related to the story, only for illustration Credit: Novertis
Source: Getty Images

FG asks WFP to stop bulk purchases

Kyari said:

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“What we did not want to do, was to get to market and purchase foodstuff; we have appealed to the World Food Program (WFP), which is a United Nations Agency, not to make bulk purchases from the market so as not to exacerbate the food price inflation that we have now”

Ministry receives fertiliser donation from CBN

The minister noted that the fertiliser donation from CBN would enhance food production and price stability in Nigeria.

He said that the Agriculture ministry had received the handover of the donation letter and that the distribution of the fertilisers would commence soon.

According to reports, the ministry is awaiting the location of the fertiliser drop-off.

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“As soon as we get the locations, which I am sure are spread across the country, we will swing into action,” he said:

500 tractors coming soon

Kyari stated that the 500 tractors assembled by John Deere Group would be delivered to the Nigerian government to boost mechanised farming and enhance food production, security and nutrition across the country.

The minister stated that the 500 tractors are expected by the end of May, with additional deliveries in September this year.

He confirmed the commitment of the Nigerian government to meet the yearly goal of 2,000 tractors in the next five years, as stated in the Memorandum of Understanding (MoU) with the ministry.

However, a farmer, Abdulfatah Oladeinde, told Legit.ng that Nigerians should expect high food inflation next year because many farmers are spending more to pay workers.

He said the farmers are paying almost three times what they paid some two years ago because of the naira devaluation.

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“What we have now is that Nigeria will experience high food scarcity and inflation in 2025 because farmers are paying more to maintain their farms.
"We had some three years ago, workers from Togo and other neighbouring countries always came to Nigeria to work on farms, but this year, they did not come because the naira is worth nothing. The CFA is more valuable than the Nigerian currency," he said.

Traders sell 50kg bag of rice at new price.

Legit.ng reported that rice, a staple in Nigeria, is fast becoming unaffordable for most citizens as grain prices have skyrocketed 98.47% in the last 12 months.

Experts say the continued rise in the price of local parboiled rice is due to the scarcity of paddy rice in the country.

A survey of some food markets in Lagos, Nigeria’s commercial centre, showed the prices of 50kg bags of top brands.

Source: Legit.ng

Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng