With 27,000 metric tonnes CBN, farmers move to reduce price of rice
To reduce the hike in the prices of rice in the country, the Central Bank of Nigeria (CBN) and the Rice Farmers Association of Nigeria (RIFAN) planned to distribute 27,000 metric tonnes of rice paddies directly to millers nationwide.
With this development, industry stakeholders believe the price of rice is expected to fall in the coming days.
The rice, which will be distributed from Wednesday, aligns with the apex bank’s move to address the rising cost of food prices in the Nigerian market.
The CBN said direct allocation from RIFAN warehouses across 16 States of the Federation is the sequel to the earlier sale of paddy aggregated as loan repayment under the Anchor Borrowers’ Programme (ABP) to millers from the rice pyramids unveiled in Niger, Kebbi, Gombe and the Ekiti States.
According to the Acting Director, Corporate Communications Department at the CBN, Osita Nwanisobi, Kaduna, Kaduna State, has been selected as the key location for the paddy allocation exercise which will be done simultaneously in the States that recorded the highest quality of rice harvests during the last farming season.
He said the new strategy was in line with the Bank’s mandate of ensuring price stability and its focus on being a people-centred central bank.
The CBN’s spokesperson also expressed optimism that the allocation of the paddies would trigger a decline in the prices of rice in the Nigerian market, boost availability, and ultimately check the activities of middlemen seeking to create artificial scarcity along the supply chains.
The CBN recently unveiled pyramids of rice paddies in Niger, Kebbi, Gombe and the Ekiti States, with the Federal Capital Territory, Ebonyi and Cross River slated for the same exercise in the coming weeks in what the Bank says is part of its contribution to ensuring self-sustenance in food production as well as food security in Nigeria.
It will be recalled that the CBN, working with relevant agencies, in January 2021, had triggered the release of about 300,000 metric tonnes of maize from strategic anchors under the Anchor Borrowers’ Programme (ABP) which forced down the prices of maize from N180,000 per metric tonne.
