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The value of a bag of rice recorded a reported enhance of 29% in two months. This surge has precipitated widespread concern amongst merchants and customers.
The surge comes in keeping with a World Financial institution Meals Safety Replace which famous that the costs of agricultural merchandise, exports, and cereals elevated by 6%, 4%, and 10% respectively on the finish of July 2023.
The report additionally famous that the costs of Maize and Wheat rose, closing at 12% and 14% increased inside the similar interval. Newsmen report that the worth of rice in Lagos elevated from N32,000 in June to N45,000 by the present date. Additionally they revealed that domestically produced rice within the Federal Capital Territory is presently priced at N37,000 per bag, whereas imported rice is promoting for N48,000.
Whereas these costs are alarming, allow us to check out a few of the causes of the hike.
Hike in Transportation Prices
Talking with newsmen, Francis Uwhakenan stated the escalating price of transportation over latest months has contributed to the rise in rice costs. He additionally defined that the expense of transporting a truckload of rice has doubled inside this era.
Depreciation of Naira
One other importer instructed Newsmen that his rice provide comes from the Republic of Benin. He stated of late, he has needed to buy {dollars} at a charge of N890/$, which he then converts to francs. He identified that after accounting for the excessive prices of buying this costly overseas alternate, the top customers inevitably bear the burden.
Low consumption of native rice
Moreso, wholesale distributors famous that native rice just isn’t transferring out there. It is because most residents not often devour native rice.
Godwin Imafidon, a wholesaler in Iyana Ipaja Market stated, “Regardless of the excitement round native rice, folks aren’t shopping for. They go for overseas variants, praising its high quality and lack of impurities.”
Influence of floods on rice farms
Reflecting on the 2022 nationwide floods, Ade Adefeko, vp of Olam Nigeria Restricted, described its impact on their rice farm and the next affect on rice costs.
He stated, “A substantial 25% of the rice crop was misplaced after the October 2nd incident.”
With the ‘Ember Months’ looming, merchants speculate that the price of a rice bag would possibly escalate past the monetary functionality of common wage earners by December.
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