Connect with us

Economy

Nigeria-Niger border reopening responsible for rice price reduction — Millers

Published




The Association of Rice Millers has attributed the recent decrease in rice prices across Nigeria to the reopening of the Nigeria-Niger border, providing insights into the factors contributing to this significant development.

Chairman of African Rice Millers in Nasarawa and the national president of the Association of Small-Scale Agro Producers in Nigeria, Jonathan Joshua, highlighted the impact of this border reopening on the rice industry.

He stated, “Some mills that shut down production owing to the scarcity of paddy last year and early this year are now reopening as they can quickly source the grain from neighboring countries due to the reopening of the Nigeria-Niger border.”

MORE READING!  Nigeria needs $10b yearly to meet 2030 development goals - UK

Joshua emphasized that this trend is expected to continue, with further reductions in rice prices anticipated in the coming months as harvests commence. “We expect paddy prices to drop further when farmers commence harvesting in two months,” he added.

The lifting of sanctions on the Niger military junta by the Nigerian government has facilitated the importation of paddy, a crucial input for rice millers, enabling them to resume operations. Joshua reiterated, “We are expecting the prices of paddy to drop further when farmers commence harvesting in two months.”

MORE READING!  Nigeria needs $10b yearly to meet 2030 development goals - UK

The impact of this border reopening on rice prices is evident, with a significant decline observed since March 2024.

BusinessDay’s market survey revealed a 32 percent decrease in the price of paddy, with a ton costing an average of N425,000 in April, down from N625,000 per ton in February.

Nigeria’s rice milling industry had faced challenges following the closure of its border with Niger in October 2023, disrupting cross-border trade in paddy.

MORE READING!  Nigeria needs $10b yearly to meet 2030 development goals - UK

However, with the recent reopening of the border, rice millers are optimistic about a resurgence in the industry.

Despite the positive outlook, challenges such as insecurity and production costs remain significant factors affecting rice production in Nigeria.

Advertisement
Comments



Trending