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The Central Bank of Nigeria (CBN) has made agriculture a focus area in recent years, and in the apex bank’s plan for the next five years (2019 to 2024), ten commodities have been identified for special intervention.
Rice, Maize, Cassava, Cocoa, Tomato, Cotton, Oil-palm, Poultry, Fish, and Livestock/Dairy, according to Godwin Emefiele, the CBN governor, are to record a boost in agricultural productivity through the provision of improved seedlings, as well as access to finance for rural farmers.
The ten focus commodities are highlighted below, with some prospects.
“Before the Anchor Borrowers’ Programme, we would cultivate rice, but will not have buyers,” said Mohammed Suleiman Ambursa, a judge of the Kebbi State High Court, who was on his farm during a visit to Birnin Kebbi. “The price was so low before,” he said.
Now that there more rice mills springing up, there is an increase in demand for paddy. This presents an opportunity for those who want to take advantage of producing rice, which is perhaps Nigeria’s most consumed staple food.
For the price of local rice to come down significantly, Rotimi Fashola, general manager, Elephant Group Plc, told BusinessDay the cost of paddy (which is the raw material) will have to sell well below N100,000 per metric tonne. Currently, it sells for N115,000 on the average, before other logistics costs are factored in, which could then take it to about N130,000.
According to the Food and Agriculture Organisation (FAO), Nigeria’s rice production reached 7 million tonnes (4.2 million tonnes, milled basis) in 2017, up 12 per cent from 6.3 million tonnes (3.8 million tonnes, milled basis) in 2015. Official, accurate data to ascertain consumption and the gap with production is not readily available. However, when the smuggling market is considered, the opportunities become … Read More...