Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by dre11(m): 10:20am On Sep 01, 2023 |
The scramble for rice by suppliers recruited by the federal and state governments is partly responsible for the spike in the prices of the commodity, multiple sources have told Daily Trust.
Traders in markets in some states told our correspondents that requests by contractors had led to an increase in demand without corresponding supply from millers.
Recall that the National Economic Council (NEC) had on Thursday, August 17, said that the federal government approved N5 billion grant to be given to each of the 36 states of the federation for the procurement of grains as well as five trucks of rice to each state as palliatives to cushion the effect of fuel subsidy removal.
Most of the states had later acknowledged that they got the supplies; with some of them saying they have started using part of the N5 billion given to them to procure more grains, including rice, for onward distribution to people.
The five trucks given to each state translates to 3,000 bags of 50 kg. This means that a total of 111, 000 bags of rice was shared to the 36 states of the federation and the FCT.
A contractor, who spoke to one of our correspondents, said he had an LPO from one of the states in the North to supply rice but was yet to meet up.
“The supplies have been mopped up in the markets,” he said. “I strongly feel that the federal government must explore ways to import the commodity from outside the country to bridge the gap, crash the price and avert hunger.
“They (federal government) shared roughly 3,000 bags to each of the states, how many people would benefit from it?,” he asked.
Abdullahi Ali, a family man in Kano, said he was not happy with the recent development.
“Those of us who have the money to buy the rice for our families have to pay more for a bag because it is not there,” he said.
A restaurateur in Wuse, Abuja, Janet Yusuf, said the cost of a plate of rice has increased. “We sell a plate of rice for N1, 700 now. It was N1, 200 two weeks ago,” she said.
A credible source in one of the federal government agencies told the Daily Trust, “The whole idea of the palliative by the federal government was to cushion the effect of the fuel subsidy, hunger and poor purchasing power of the people.
“This was why five trucks of rice were approved for each state. However, it is not that the government had the rice in its strategic reserves, no! It contracted suppliers to get the produce from millers and retailers in markets.
“Unfortunately, as soon as the moves to get the rice commence, the price skyrocketed. As you can see, it increased by over N10, 000 per bag in the last 10 days,” the source said.
The source, who does not want to be named because of the sensitive nature of the matter, said the federal government was saddened that a noble cause, which ought to have produced a positive result, had led to an unprecedented rise in the price of rice.
Another source corroborated that the scarcity of rice in the market and the attendant high cost had a direct correlation with the high demand by both states and federal government.
“It is a serious problem indeed,” the source said.
“Rice, which is a staple food in Nigeria, is now beyond the reach of ordinary citizens and while there were other factors before the recent intervention by the government in the name of palliative, there are fears that any attempt by both the federal and state governments to contemplate buying other commodities in large quantities would lead to spike in the prices.
“There were plans to buy beans, garri and maize in large quantities in the market but there is corresponding fear that this will lead to a worse problem,” he said.
When contacted, the National Emergency Management Authority (NEMA), which is responsible for the release of rice to the states, declined comment on a request that its decision to buy the rice through contractors was responsible for the high price at retail shops.
Spokesman for the agency, Manzo Ezekiel, said he was not aware of any such development.
He said the distribution done by the agency was a Special National Economic Livelihood Emergency Intervention (SNELEI).
There was no comment on the matter from the presidential villa.
A source in the Presidency said the government patronized retailers to get rice, grains and other palliative items to assist households and spread prosperity for all.
The source, therefore, said the action was not meant to inflict hardship on the citizens but to encourage market women and traders who would make ends meet through the patronage.
“States could equally use grains as palliatives if rice was not enough. If there is no enough rice, the governors should distribute other food items. If there’s high demand, people will go for other things.”
‘No paddy to produce more rice after mop up’
Experts in the agricultural sector are blaming the current rise in the price of home grown rice to a number of factors, including inadequate paddy for the local millers as well as mopping of the produce by some government agents as well as Prime Anchors appointed by the CBN to give money and some inputs like seed, fertilisers and herbicides to evolve out growers but failed to do so.
An agriculturist, Mr Ige Idowu, said the inadequate paddy remains the major challenge as many local millers have stopped operations.
He said the federal government must find a solution to one circle farming system currently going on in the country.
A bag costs N47,500 in Kano
In Kano, the price of foreign rice (Thailand), which was sold at about N42,000 per bag in Singa Market last month now sells for N47,500 while at the Dawanau International Grains Market, a jumbo size bag of rice sold last month for N38,500 now sells for between N42,000 and N43,000.
Speaking about the development, a marketer at Dawanau, Anas Usama, said the hike in price is related to the absence of new stock from the farms.
“New stock is yet to arrive, so, whatever we are bringing to the market now is old stock.
“The condition in which the rice was obtained and the destination mainly contributes a lot as a determining factor for the price.”
On his part, a rice dealer at Singa Market, Basiru Dauda linked the development to the recent palliative distribution and the dollar rate.
“The palliative issue has contributed a lot. Secondly, there is much stock hidden in warehouses by businessmen who normally keep it until the price hits the roof. Now, they are taking advantage of that”.
Borno
In Borno, when our correspondent visited the Bulunkutu Market in Maiduguri, a 100kg of local rice was N85, 000 while 50kg of rice was sold at N47,000.
A trader in the market, Malam Abubakar, said in the last two to three months, a 100kg bag of local rice was selling at N58, 000 while the 50kg was less than N28, 000.
However, most traders interviewed in the market attributed the hike to massive purchase for palliatives and the scarcity of paddy.
One of them who gave his name as Babagana, said, “Most of the local processing industries in Borno and Taraba have closed down due to shortage of paddy and cost of production.
“Before now, most of the traders in Maiduguri relied on Zabarmari rice, but the paddy scarcity had affected tens of local processors. We now have to bring in from markets outside Maiduguri. So that’s seriously affecting the cost,” he said.
Plateau
In Jos, the capital of Plateau State, a bag of 50 kg of foreign rice is sold at N50, 000 while Nigerian rice is sold at N47, 000.
According to traders at the popular Yankwalli Market, the price of the product is increasing because the product is not sufficient in the market and there is high demand by contractors.
Isa Ibrahim, a trader explained that, “The product is sold at 50, 000 because we also bought it at a high price. The price could be changed anytime depending on the situation of the market. Some people attribute the development to the shortage of the products. Two weeks back, the price was N43,000 per bag.”
Yalo Ibrahim, another trader said the price of the products has gone higher in the market because of the restrictions on the importation of the product and the scarcity in the market due to high demand in the last two weeks.
Benue
In Makurdi, the price of rice has also gone up in many markets in the past few days.
Our correspondent reports that a 50kg bag of local rice now sold for between N46,000 and N48,000 as against the N40,000 the same size sold in the past few days.
The price of local rice had hovered between N36,000 and N40,000 in July, this year, after the price of petrol per litre went up.
A trader at the rice mill in Wadata, Mary Idoko, said that the price of rice has gone up by over N8,000 in the past few days.
She said the prices went up because producers hardly get paddies enough for production, adding that the hike was worrisome.
Emeka Kalu, a trader at the Modern Market, attributed the high cost of rice to both shortfall in supplies and the federal government’s distribution of palliative.
He said that the rumours about the government mopping up rice from the market for the distribution might be a contributory factor, but that the country lately had become a place where hike in food commodities no longer have bounds.
Another trader, Helen Terkuma, claimed that there was a shortfall in supplies as in the palliatives distribution by the federal government was gotten from the source of their supply.
Terkuma said the retailers are also taking advantage of the current economic situation in the country to hike rice prices.
Rivers
In Rivers State, a market survey carried out by our reporter in various markets in Port Harcourt such as Mile One Market, Creek Road Market, Eke Oyigbo Market and Mile Three Market showed that one bag of stone free local rice is sold between N50,000 and N52,000.
Also a bag of foreign rice is sold at N65, 000 while a bag of non stone local rice is sold at N40,000.
Similarly, a cup of stone free rice is sold at N250 while a cup of non stone free rice is sold at N200.
A trader at Mile one market, Keth Chiazu said the price went up in the last few days because of high demand.
In Abuja, the price of Nigerian grown rice has also gone up.
A market survey at Bwari, Dutse, Utako, Wuse markets shows that a 50kg bag is sold between N46, 000 and N50, 000 depending on the brand and the market.
A retailer at the market attributed the high cost to the increase in the factory price occasioned by inadequate paddy.
There’re other factors – AFAN
But to Arch. Kabiru Ibrahim, the National President of the All Farmers Association of Nigeria (AFAN) said there are many reasons even before the issue of buying to give out as palliative by the federal government.
He said, “First of all, the prime anchors appointed by the CBN to give money and some inputs like seed, fertilisers and herbicides to evolve out growers of paddy failed to do so but resorted to buying paddy from farmers.
‘’This caused scarcity and therefore inflation. The floods of 2022 and impulse buying by millers also contributed to the crushing inflation. Of course, buying by the government when there is inflation actually exacerbates the inflation.
“These are the prime reasons for the current state of affairs in the price of home grown rice,” he said. https://dailytrust.com/palliatives-rice-price-spikes-as-fg-states-suppliers-mop-up-markets/ 1 Like
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Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Racoon(m): 10:21am On Sep 01, 2023 |
So much hardship across the land. 35 Likes 2 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by NzogbuNzogbu: 10:23am On Sep 01, 2023 |
Tinubu is almost spending half a year in governance, nothing to show except more hardship
Mind you the party he midwifed have done 8 fruitless years of waste 45 Likes 4 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Naijanascam: 10:24am On Sep 01, 2023 |
Decievers of the century And be dishing out crumbs 37 Likes 2 Shares
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Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by RenaissanceGuy: 10:27am On Sep 01, 2023 |
Imagine how very ineffectual this govt is. What's the difference between Tinubu and Buhari now?? Where's the commonsense in attempting to share food stuff to 150 million poor people when the bulk of the money will be embezzled and those who have money to buy will be further thrown into the den of hyperinflation?? 56 Likes 4 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by NairaGPT: 10:32am On Sep 01, 2023 |
D |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Beremx(f): 10:32am On Sep 01, 2023 |
Tinubu should open the border unconditionally for Nigerians to buy rice at cheaper rate. With the way things are going, a bag of rice might cost 100k before the end of the year.
SMH 41 Likes 3 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Xscape1993(m): 10:34am On Sep 01, 2023 |
This evil government ooo. 16 Likes |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by silvoclaira: 11:00am On Sep 01, 2023 |
No piece for the wicked |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by CodeTemplar: 11:31am On Sep 01, 2023 |
Beremx: Tinubu should open the border unconditionally for Nigerians to buy rice at cheaper rate. With the way things are going, a bag of rice might cost 100k before the end of the year.
SMH That means you will need forex for import and most likely run to CBN, then cry that emefiele finished all the dollar again. Instead, let's embrace production and substitute imports as much as possible. 2 Likes 1 Share |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Longinyamapucci(m): 11:32am On Sep 01, 2023 |
By the time you guys will start to collect maggi you will know the meaning of vote wisely.
Do you think those advising you are your mates in terms of mental capacity to make the right judgement.
Tinubu must complete his 4 years to end the Long lasting debate. 24 Likes 1 Share |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by ThiefnubuBandit(f): 11:33am On Sep 01, 2023 |
Useless government with foolish idiotic wretched supporters. 22 Likes 2 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by EyeCumInPiece: 11:33am On Sep 01, 2023 |
Even if you give Ebola 9months, he can only give birth to more hardship. 33 Likes 2 Shares
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Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by dondodo: 11:33am On Sep 01, 2023 |
I dedicate this FTC to obi 5 Likes |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Brendaniel: 11:33am On Sep 01, 2023 |
CodeTemplar:
That means you will need forex for import and most likely run to CBN, then cry that emefiele finished all the dollar again.
Instead, let's embrace production and substitute imports as much as possible. Oga that theory has not helped Nigeria since Buhari closed it, it was purely counter productive, if the borders are opened people will source for dollars from anywhere available including outside Nigeria to import and make money, It is not only the CBN that provides dollars, the production you are talking about the same government is killing the manufacturing sector and a lot of farmers are not feeling safe farming. The truth is Tinubu partnered with Buhari to destroy Nigeria for their selfish ambitions..... 39 Likes 2 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by crossfm: 11:35am On Sep 01, 2023 |
Hehehe. Another own goal ![grin](https://www.nairaland.com/faces/grin.png) . They keep on causing more blunder,to cover up for their previous blunder ![cheesy](https://www.nairaland.com/faces/cheesy.png) . 13 Likes 1 Share |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Whois(m): 11:35am On Sep 01, 2023 |
Be calming down ![undecided](https://www.nairaland.com/faces/undecided.png) 1 Like
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Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Nextt: 11:35am On Sep 01, 2023 |
What do you expect? How do you think that making large purchases of rice will not cause a spike in the price of rice? FG still thinking like a secondary school student. 22 Likes 2 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by tesppidd: 11:36am On Sep 01, 2023 |
![grin](https://www.nairaland.com/faces/grin.png) Renewed shege. Poor people should tighten their belts and give Tinubu a chance to fix decades of rot. Ministers and Governors should loosen their belts to make room for billions of remunerations and 300 million naira bullet proof cars. Shege Dan Burouba!!! 23 Likes 2 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Nbote(m): 11:36am On Sep 01, 2023 |
Imagine the foolishness of both a people and it's useless govt.. Instead of providing palliatives to ease the hike in prices of petrol by providing cheaper transportation options and alternatives, the ediots choose to share grains. Now the same govt claim it had grain reserves so what are they doing buying up and mopping up the market and thereby leading to more increases ![](/faces/huh.png) 20 Likes 2 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Ahmed0336(m): 11:36am On Sep 01, 2023 |
As expected. The economy is on hyper inflation mode 8 Likes 1 Share |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Kentuforchrist(m): 11:37am On Sep 01, 2023 |
Una never chimchotin
Tinubu must complete his four years
So next time if they say vote wisely u go use ur head and not ur stomach 13 Likes 2 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Menclothing: 11:38am On Sep 01, 2023 |
They should have import some if they know we can’t supply all locally Why can’t they distribute yam beans garri and other made in Nigeria foods 6 Likes 2 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Nobody: 11:38am On Sep 01, 2023 |
Confusion 2 Likes |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by oluwaseyi0: 11:38am On Sep 01, 2023 |
that's Nigeria for you
instead of increasing production they simply mob up available product 12 Likes 2 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by meum: 11:39am On Sep 01, 2023 |
Before? Forces of demand and supply at play 3 Likes |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Unperturbedpota: 11:39am On Sep 01, 2023 |
Fraud 🤥.. Until the citizens are ready to take their destiny into their own hands, well let their suffering continue. Suffer never tya Una. So continue going for the Guinness world records in suffering okay? 🤣🤣🤣🤣🤣🤣🤣 6 Likes 1 Share |
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Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by akaahs(m): 11:41am On Sep 01, 2023 |
So we don't have food banks as a country ![](/faces/huh.png) ThIs is how we ll suffer when there is serious famine or war. Na wa oo 3 Likes 1 Share |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by nairalanda1(m): 11:41am On Sep 01, 2023 |
We want cheap rice, we have to do mechanzied farming, industrial level farming, and up our irrigation game.
The countries we import rice from are Brazil and Thailand, which both have heavy all year rainfall, and the kind of swampy environment that favours rice growing. Plus a lot of industrial farming.
Nigeria doesn't have that. And importing rice for our needs puts strain on our dollar resources. |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by Landmine1: 11:43am On Sep 01, 2023 |
You won’t see zombies in threads like this. Even a kid wouldn’t think this way. 5 Likes 3 Shares |
Re: Palliatives: Rice Price Spikes As FG, States’ Suppliers Mop Up Markets by nairalanda1(m): 11:44am On Sep 01, 2023 |
Beremx: Tinubu should open the border unconditionally for Nigerians to buy rice at cheaper rate. With the way things are going, a bag of rice might cost 100k before the end of the year.
SMH Yeah, it sounds like a nice idea, of 1,Putting more strain on our dollars...we don't pay for imports in Naira you know. 2.Putting local rice farmers out of business. |