Inside the rice price dispute – Daily Trust

The government and rice processors have disagreed on how a lot milled rice must price within the nation. The federal government argues that the present rice value, which falls between N60,000 and N67,000 for each and every 50 kilograms bag, is over the top and must be lowered to what it described as a extra affordable vary of N55,000 to N57,000.

On Tuesday, October 6, 2026, the ministers of Agriculture and Meals Safety, Senator Abubakar Kyari and Dr Aliyu Sabi Abdullahi, in conjunction with their everlasting secretary, Dr Marcus Olaniyi Ogunbiyi, convened a gathering, which used to be attended through the president of the Rice Processors Affiliation of Nigeria, Mohammed Abubakar Mai Fata (chairman of Umza Rice Kano), and its Director-Normal, Dr Andy Ekwelem, representatives of Olam, WACCOT, and the All Farmers Affiliation of Nigeria, together with the Managing Director of the Financial institution of Agriculture, Ayodeji Oludare Sotinrin, to deal with issues associated with the existing marketplace value of milled rice.

Weekend Believe collected  that the ambience of the assembly corridor used to be stressful as there have been accusations and counter accusations over the present value of rice available in the market.

Federal executive ’s claims

The ministers argued that primarily based in the marketplace survey and research they carried out, the typical manufacturing price for a bag of rice used to be N49,389.23; subsequently, the present marketplace value, which is above N60,000 in line with 50 kg used to be “too excessive and indiscriminate.”

Senator Abubakar Kyari, the Minister of Agriculture and Meals Safety, stated the present marketplace value is unacceptably excessive.

“We aren’t seeking to keep an eye on costs. Mr President isn’t within the crash of commercial, however let’s have a look at the criteria. It’s concerning the financial system, provide and insist, manufacturing and value of manufacturing. We have now checked out these types of spaces, and consider that those costs must no longer be the place they’re. We’re extraordinarily interested in the indiscriminate building up in costs.

“The federal government has mechanisms to use to ensure that the citizenry’s welfare is secure, however on the identical time, we’re having a look at farmers’ and millers’ welfare,” he informed the millers and farmers within the assembly room.

 The minister of state for agriculture, Dr Aliyu Sabi Abdullahi, additionally informed the RIPAN chairman that he believed there have been dangerous eggs within the affiliation seeking to sabotage the rustic.

“Mr Chairman, we’re conscious there’s dangerous behaviour amongst your team, and also you will have to stand your flooring and make sure that people who find themselves displaying this dangerous behaviour are requested to forestall if they’ve to proceed to be a part of it. Whilst we can’t modulate you, we think that each and every gadget that operates in the best way you’re working is meant to auto-correct itself.

“Autocorrecting your self manner that you’re able to disciplining your contributors who aren’t sticking to what you’ve agreed as a bunch. It’s when you find yourself doing that, that the integrity of your team turns into well-sounded, well-recognised and revered,” Dr Abdullahi stated.

Talking additional, the minister of state defended executive’s place at the present value. He stated that once calculating this value, the ministry thought to be all of the price drivers within the processors’ manufacturing gadget, together with waste and losses, in addition to the fastened price of a large number of processes that will make stronger their operations.

Subsequently, a plus or minus in any marketplace, relying at the moderate, must no longer create this kind of huge hole between the price of manufacturing and the general value of the product available in the market.

“I feel that’s the purpose we’re making. Getting it that prime is what we’re nervous about,” Dr Abdullahi stated.

Additionally talking, the everlasting secretary of the ministry, Dr Ogunbiyi, insisted that the present value of rice available in the market “is simply too excessive,” including that the problems had to be addressed.

“I’m an engineer. I’ve been in rice processing for a very long time. I took this research and survey and I checked out it rather well. We have now addressed each and every house, each and every manufacturing price on this house, together with diesel and many others and we were given N49,000. Take a look at it. We’re all Nigerians, please. The present value is simply too excessive,” he defined.

RIPAN expresses frustrations

The president of the Rice Processors Affiliation of Nigeria, Mohammed Abubakar Maifata, who spoke on behalf of the processors, didn’t cover his dissatisfaction with the federal government on the assembly, Weekend Believe collected. He stated the importation through some team of people used to be adversely affecting the millers within the nation.

“The ministry is even announcing that they don’t know that any person is uploading. I’ve to turn them a video of other folks offloading rice lately in Port Harcourt. That is the location we discover ourselves.

“Some years again, we had been combating smuggling; now, the item has long past past smuggling to uploading milled rice at all times. No matter you do with the committee, consider me, I do know what is true. It’ll be counterproductive if importation continues as a result of no matter we do within the subsequent 10 years, even though we make investments all we have now in agriculture, we can’t fit the price of manufacturing of paddy with India and Thailand as a result of they’ve been doing it constantly.

“So, that implies our price will for sure no longer be the similar as what they’ve. Then we’re left with the choice of both leaving behind our industries and the meals safety programme to depend on imports, which isn’t reasonable or be certain that we forestall it and proceed to broaden and nurture our business. That is what’s affecting all folks,” the Umza chairman defined.

Talking additional at the elements accountable for the instability in the cost of rice, the RIPAN chairman stated, “The main uncooked subject matter of any processor is paddy. The price of the paddy drives the price of the rice (milled).”

He stated when the Anchor Debtors Programme stopped; when the federal government stopped investment number one manufacturing because it used to be prior to 2023, problems began to have an effect on the field.

“Let me recall 2024 when there used to be a topic that millers had been promoting rice at N80,000. At the moment, it used to be no longer discussed that the millers had been purchasing paddy at N800,000 as nicely. So the price of paddy is the problem that is affecting the business.

“The problem of the price of paddy has come again to executive. Lately, farmers are purchasing fertiliser at greater than N50,000 for the dry season. They’re purchasing diesel at N2,000 in line with litre.

“Lately, at 20 in line with cent moisture, farmers can’t promote a tonne of paddy at not up to N500,000. That is one thing this is standard – from N450,000 to N500,000,” he stated.

However the minister interjected, announcing the survey performed through the ministry confirmed differently, including that the costs of paddy are converting in keeping with call for and provide, Weekend Believe collected.

“As an example, within the North-Central, Nasarawa and Niger are the most cost effective. A tonne is at N450,000,” he defined.

The minister stated he believed that each the federal government and millers may just agree on one thing to return to a cost this is much less “as a result of you’ve a duty, and we even have a duty. I’ve the typical price of paddy right here (relating to the marketplace survey carried out through the ministry), which is N460,000 in line with tonne with 20 in line with cent moisture. So on the finish of the day, dried paddy shall be N533, 000 moderate.”

Even though a committee used to be arrange with six contributors from processors, farmers and two other folks from the ministry to hash out modalities and succeed in an settlement, many millers had been upset, Weekend Believe collected.

Many processors consider that any solution of the committee would don’t have any affect except the federal government addressed the problem of importation.

Millers in states

Rice millers around the nation stated they had been going through mounting demanding situations that threaten the sustainability of the rice processing business, together with insufficient paddy provide, excessive power price, lack of confidence and pageant from imported rice.

Chatting with our correspondent in Birnin Kebbi at the factor, the Normal Supervisor of Labana Rice Turbines, Mallam Alhasan Yusuf, defined why promoting rice underneath N58,000 in line with 50 kg could be a large drawback for plenty of millers.

“What we would like the government and Nigerians to understand is that the cost of any completed product in any rice mill is at once proportional to the cost of paddy. If the cost of paddy is excessive, for sure, the cost of the completed rice shall be excessive. Whether it is low, the cost of completed rice shall be low as nicely.

“We need to suggest some measures of intervention to the federal government, similar to tax waivers and different incentives that may cushion the consequences at the rice turbines within the nation.

“Let me come up with an instance of what took place outdoor Nigeria. There used to be a state of affairs like this every so often in Brazil and when their executive sought after to carry down the associated fee and didn’t need to shortchange millers, farmers and the folk, it requested the processors to promote to other folks at a discounted value and it subsidised for the processors.

“If that occurs right here, it is going to be a win-win for the federal government, the processors, farmers and the folk within the brief run. However in the end, the federal government must do so much on agricultural extension services and products.

“On the present value we’re purchasing paddy, the bottom we will be able to promote our completed product, if we will have to pay salaries, electrical energy expenses and different very important prices, is N58,000. If we promote at anything else not up to this, we can run at a loss,” he defined.

He alleged that one of the most issues they confronted as millers within the nation used to be the selective waiver given to a person to carry brown rice into the rustic. He argued that this could proceed to place each millers and farmers ready to be shortchanged. Except for the federal government grants waivers to all millers to import brown rice, it’s in a different way to make rice inexpensive within the nation. And our farmers must be empowered in order that they wouldn’t be shortchanged in that association.

A rice miller, Malam Ahmad Muhammad, stated numerous each massive built-in turbines and small and medium-scale processors had been working underneath their put in capability as a result of many demanding situations.

He stated excessive power price had additionally emerged as a significant burden as rice milling calls for considerable electrical energy for parboiling, drying, milling and packaging. Consistent with him, unreliable public energy provide has pressured many operators to rely on diesel-powered turbines, expanding manufacturing price.

“With the present state of affairs, having a managed value of rice is nearly unimaginable with out regulating and controlling power assets and their availability. The emerging price of diesel has larger manufacturing bills and squeezed benefit margins,” he famous.

Some other miller stated solving the cost of rice had change into tricky as a result of a tonne of paddy lately prices between N450,000 and N480,000. He stated the associated fee used to be no longer solid, with indications that it will upward push additional.

He additionally stated rice processors had been going through rising pageant from imported and smuggled rice, which he stated used to be developing an adverse surroundings for wholesome pageant. He defined that inexpensive imported rice would at all times put drive on in the neighborhood processed commodities, making it tricky for home millers to get better their emerging manufacturing price.

The Managing Director of Umza Rice Turbines, Kano, Alhaji Abubakar Muhammad, stated rice millers by myself would no longer have the ability to crash the cost of rice as asked through the government, noting that price of manufacturing will have to even be addressed.

Consistent with him, millers are spending some huge cash on public provide of electrical energy and turbines to run the rice turbines, which provides to the manufacturing price that interprets into the rice value. He stated Umza Rice Turbines spent kind of N100 million to hide electrical energy expenses in a month, which if added to diesel for his or her turbines, would just about double the quantity.

“That is although the general public provide of electrical energy is risky. From the time I entered my place of business lately, there have been energy interruptions greater than 10 instances. How are you able to do one thing significant underneath this kind of state of affairs? You continue to have to make use of turbines that eat diesel, an overly dear commodity. Most of these upload in your manufacturing price,” he defined.

Umza Rice Mill, positioned alongside the Kano-Zaria street, used to be constructed through Alhaji Abubakar Maifata, with the aptitude to mill 430,000 metric tonnes of paddy every year.

He argued that rice farmers would possibly abandon their farms subsequent farming season if they might no longer recoup their investments as a result of makes an attempt to crash the associated fee with out due regard to the price of manufacturing.

‘Millers by myself can’t crash rice value’

“If a farmer who spent a humongous quantity to shop for fertilisers and different inputs realises that he’s promoting his rice at a loss, he would possibly not pass to the farm subsequent farming season; and rice will in the end no longer be to be had for millers,” the managing director stated.

A member of the Rice Processors Affiliation of Nigeria who most popular to not be named, stated the federal government must no longer inform millers to crash rice costs when final yr, in a bid to crash the associated fee, it entered into an settlement with the Indian executive via high-level diplomatic negotiation to take away a 30 in line with cent levy on semi-processed rice and allowed just one or two individuals to import semi-processed brown rice into the rustic.

In identical vein, the RIFAN chairman in Kebbi State, Yusuf Argungu, additionally maintained that except for the federal government got here up with a coverage to verify the provision of paddy for rice millers within the nation, its effort to carry down rice costs would possibly not yield any outcome.

He stressed out that for a while now, most of the rice-producing states may just no longer produce paddy for the millers to shop for. He argued that the shortage of paddy for the millers’ completed product had no longer helped to carry down the cost of rice value.

Consistent with him, at this time, lots of the rice-producing states have lack of confidence problems. Most of the turbines don’t have any paddy to procedure of their warehouses. And the upper the call for, the upper the associated fee. “If paddy is to be had, the cost of rice will for sure fall. I feel what the federal government must do is to empower farmers around the nation. If they’re empowered, they’ll pass to the farms to provide extra paddy for our native turbines; and they’ll get extra paddy to procedure,” he stated.

Caution in opposition to the importation of rice into the rustic, the RIFAN chairman stated: “If the federal government empowers farmers and offers subsidies to rice turbines, we can meet the specified rice wishes of the rustic. The cost being proposed through the government is most effective conceivable if they might meet the desires of each the farmers and millers”.

He added that the federal government must get a hold of a coverage for farmers to provide extra rice to feed Nigerians or even export the surplus to different international locations.

“The rice-producing states can meet the rice want of the rustic if executive is available in to make stronger them. The Anchor Debtors Programme of the management of the past due President Muhammadu Buhari used to be just right however no longer nicely carried out. It didn’t paintings as a result of other folks had been owing and refused to pay again their loans. If it used to be nicely applied, we might have sufficient rice within the nation. Consider {that a} widely known rice mill like WACOT does no longer have paddy to procedure. Their warehouses are empty. Executive wishes to return in to make stronger extra rice manufacturing within the nation,” he additionally stated.

A rice farmer and member of the Rice Farmers Affiliation of Nigeria, Aminu Bashir Warawa stated rice farming wanted robust and sustainable executive make stronger to assist stabilise costs. He added that lack of confidence had compounded the issue through disrupting the motion of farmers, buyers and transporters.

Warawa stated banditry and different felony actions in portions of the North had made it tougher for farmers to get entry to their fields and millers to move paddy from generating communities to processing centres.

He additionally stated the excessive price of fertiliser and different agricultural inputs had made rice farming an increasing number of dear, forcing some farmers out of manufacturing and contributing to the emerging price of paddy within the open marketplace.

“Addressing the issues calls for a coordinated way involving progressed safety in farming communities, get entry to to inexpensive finance, dependable electrical energy, higher rural roads, progressed paddy aggregation and garage amenities, in addition to more potent hyperlinks between farmers and millers,” Warawa stated.

He added that insurance policies geared toward selling home rice manufacturing will have to bear in mind the working price confronting processors, caution that larger manufacturing on the farm point would possibly no longer translate into aggressive and inexpensive in the neighborhood milled rice with out addressing the demanding situations going through millers.

‘FG must no longer impose value’

An economist, Ibraheem Maigari, has suggested the government in opposition to enforcing direct controls on the cost of rice, announcing this kind of coverage may just discourage farmers and millers from making an investment within the sector. Maigari stated the federal government must as a substitute cope with the key elements riding up the cost of rice, together with the price of paddy, fertiliser, power, transportation and different manufacturing inputs.

He stated decreasing those prices would permit farmers and rice millers to function profitably whilst making the commodity extra inexpensive to customers.

Consistent with him, expanding home rice manufacturing stays one of the most sustainable tactics of addressing excessive costs. He stressed out the desire for the federal government to spend money on irrigation, rural roads, garage amenities, inexpensive credit score and progressed safety for farmers.

 “The federal government must cope with the criteria accountable for the excessive price of rice relatively than just solving the promoting value. If manufacturing and distribution prices are lowered, customers will in the end have the benefit of decrease costs,” he stated.

Maigari additionally steered the federal government to believe centered make stronger for inclined families whilst pursuing measures to extend rice manufacturing, caution that over the top value controls may just lead to shortages and warp the marketplace.

He stated any intervention within the rice sector must strike a stability between protective customers from excessive costs and making sure that farmers, millers and different gamers within the price chain stay inspired to proceed manufacturing.

‘Executive must supply incentives, no longer compel companies to make stronger insurance policies’

The federal government must supply tax vacations, low-interest loans and dependable infrastructure to producers and different companies as a substitute of anticipating them to make stronger its insurance policies with out making a conducive surroundings for winning operations, a human rights activist, Debo Adeniran, has stated.

Adeniran stated companies could be extra prepared to cooperate with the federal government if they might make affordable earnings, meet their duties to staff and maintain their operations.

“Executive has the prerogative of figuring out what coverage they need to introduce and put in force, however they don’t have the prerogative of figuring out which personal people or firms will cooperate with them within the implementation of that coverage,” he stated.

He argued that the industry surroundings in Nigeria had no longer been absolutely advanced to permit producers, rice millers and cottage industrialists to function profitably.

He stated the federal government must introduce cushy loans for small-scale industries and supply producers with get entry to to credit score at very little curiosity. 

Consistent with him, dependable electrical energy and just right roads would cut back manufacturing and transportation prices, enabling companies to function extra successfully and make stronger executive programmes.

He stated the federal government may just additionally identify business villages the place artisans and small-scale producers, together with welders, furnishings makers and cleaning soap manufacturers, may just get entry to apparatus and amenities at inexpensive charges.

Adeniran additional stated the federal government may just purchase produce from farmers at winning costs and unencumber it to the general public at decrease costs throughout classes of shortage.