Inside the rice price dispute – Daily Trust

The federal authorities and rice processors have disagreed on how a lot milled rice ought to price in the nation. The authorities argues that the present rice price, which falls between N60,000 and N67,000 for each 50 kilograms bag, is extreme and must be diminished 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 Food Security, Senator Abubakar Kyari and Dr Aliyu Sabi Abdullahi, together with their everlasting secretary, Dr Marcus Olaniyi Ogunbiyi, convened a gathering, which was attended by the president of the Rice Processors Association of Nigeria, Mohammed Abubakar Mai Fata (chairman of Umza Rice Kano), and its Director-General, Dr Andy Ekwelem, representatives of Olam, WACCOT, and the All Farmers Association of Nigeria, together with the Managing Director of the Bank of Agriculture, Ayodeji Oludare Sotinrin, to handle issues associated to the prevailing market price of milled rice.

Weekend Trust gathered  that the ambiance of the assembly corridor was tense as there have been accusations and counter accusations over the present price of rice in the market.

Federal authorities ’s claims

The ministers argued that based mostly on the market survey and evaluation they performed, the common manufacturing price for a bag of rice was N49,389.23; subsequently, the present market price, which is above N60,000 per 50 kg was “too high and indiscriminate.”

Senator Abubakar Kyari, the Minister of Agriculture and Food Security, mentioned the present market price is unacceptably excessive.

“We are usually not attempting to manage costs. Mr President shouldn’t be thinking about the crash of enterprise, however let’s have a look at the elements. It is about the financial system, provide and demand, manufacturing and value of manufacturing. We have checked out all these areas, and consider that these costs shouldn’t be the place they’re. We are extraordinarily involved with the indiscriminate enhance in costs.

“The government has mechanisms to apply to make sure that the citizenry’s welfare is protected, but at the same time, we are looking at farmers’ and millers’ welfare,” he informed the millers and farmers in the assembly room.

 The minister of state for agriculture, Dr Aliyu Sabi Abdullahi, additionally informed the RIPAN chairman that he believed there have been unhealthy eggs in the affiliation attempting to sabotage the nation.

“Mr Chairman, we’re conscious there’s unhealthy behaviour amongst your group, and it’s essential to stand your floor and be sure that people who find themselves exhibiting this unhealthy behaviour are requested to cease in the event that they must proceed to be a part of it. While we can’t modulate you, we anticipate that each system that operates in the means you might be working is meant to auto-correct itself.

“Autocorrecting yourself means that you are capable of disciplining your members who are not sticking to what you have agreed as a group. It is when you are doing that, that the integrity of your group becomes well-sounded, well-recognised and respected,” Dr Abdullahi mentioned.

Speaking additional, the minister of state defended authorities’s place on the present price. He mentioned that when calculating this price, the ministry thought-about all the price drivers in the processors’ manufacturing system, together with waste and losses, in addition to the fastened price of quite a few processes that will help their operations.

Therefore, a plus or minus in any market, relying on the common, shouldn’t create such a large hole between the price of manufacturing and the remaining price of the product in the market.

“I think that’s the point we are making. Getting it that high is what we are worried about,” Dr Abdullahi mentioned.

Also talking, the everlasting secretary of the ministry, Dr Ogunbiyi, insisted that the present price of rice in the market “is too high,” including that the points wanted to be addressed.

“I am an engineer. I have been in rice processing for a long time. I took this analysis and survey and I looked at it very well. We have addressed every area, every production cost in this area, including diesel etc and we got N49,000. Look at it. We are all Nigerians, please. The current price is too high,” he defined.

RIPAN expresses frustrations

The president of the Rice Processors Association of Nigeria, Mohammed Abubakar Maifata, who spoke on behalf of the processors, didn’t conceal his dissatisfaction with the authorities at the assembly, Weekend Trust gathered. He mentioned the importation by some group of people was adversely affecting the millers in the nation.

“The ministry is even saying that they don’t know that any person is importing. I’ve to indicate them a video of individuals offloading rice at the moment in Port Harcourt. This is the scenario we discover ourselves.

“Some years again, we have been preventing smuggling; now, the factor has gone past smuggling to importing milled rice all the time. Whatever you do with the committee, consider me, I do know what is correct. It can be counterproductive if importation continues as a result of no matter we do in the subsequent 10 years, even when we make investments all we’ve in agriculture, we can’t match the price of manufacturing of paddy with India and Thailand as a result of they’ve been doing it constantly.

“So, that means our cost will definitely not be the same as what they have. Then we are left with the option of either abandoning our industries and the food security programme to rely on imports, which is not realistic or make sure we stop it and continue to develop and nurture our industry. This is what is affecting all of us,” the Umza chairman defined.

Speaking additional on the elements liable for the instability in the price of rice, the RIPAN chairman mentioned, “The primary raw material of any processor is paddy. The cost of the paddy drives the cost of the rice (milled).”

He mentioned when the Anchor Borrowers Programme stopped; when the authorities stopped funding main manufacturing because it was earlier than 2023, points began to have an effect on the sector.

“Let me recall 2024 when there was a difficulty that millers have been promoting rice at N80,000. At that point, it was not talked about that the millers have been shopping for paddy at N800,000 as nicely. So the price of paddy is the situation that impacts the trade.

“The situation of the price of paddy has come again to authorities. Today, farmers are shopping for fertiliser at greater than N50,000 for the dry season. They are shopping for diesel at N2,000 per litre.

“Today, at 20 per cent moisture, farmers cannot sell a tonne of paddy at less than N500,000. This is something that is normal – from N450,000 to N500,000,” he mentioned.

But the minister interjected, saying the survey carried out by the ministry confirmed in any other case, including that the costs of paddy are altering based mostly on demand and provide, Weekend Trust gathered.

“For instance, in the North-Central, Nasarawa and Niger are the cheapest. A tonne is at N450,000,” he defined.

The minister mentioned he believed that each the authorities and millers may agree on one thing to return to a price that’s much less “because you have a responsibility, and we also have a responsibility. I have the average cost of paddy here (referring to the market survey done by the ministry), which is N460,000 per tonne with 20 per cent moisture. So at the end of the day, dried paddy will be N533, 000 average.”

Although a committee was arrange with six members from processors, farmers and two folks from the ministry to hash out modalities and attain an settlement, many millers have been dissatisfied, Weekend Trust gathered.

Many processors consider that any decision of the committee would don’t have any affect until the authorities addressed the situation of importation.

Millers in states

Rice millers throughout the nation mentioned they have been going through mounting challenges that threaten the sustainability of the rice processing trade, together with insufficient paddy provide, excessive vitality price, insecurity and competitors from imported rice.

Speaking to our correspondent in Birnin Kebbi on the situation, the General Manager of Labana Rice Mills, Mallam Alhasan Yusuf, defined why promoting rice beneath N58,000 per 50 kg can be an enormous drawback for a lot of millers.

“What we would like the federal authorities and Nigerians to know is that the price of any completed product in any rice mill is immediately proportional to the price of paddy. If the price of paddy is excessive, undoubtedly, the price of the completed rice can be excessive. If it’s low, the price of completed rice can be low as nicely.

“We must suggest some measures of intervention to the authorities, corresponding to tax waivers and different incentives that can cushion the results on the rice mills in the nation.

“Let me offer you an instance of what occurred outdoors Nigeria. There was a scenario like this typically in Brazil and when their authorities wished to deliver down the price and didn’t need to shortchange millers, farmers and the folks, it requested the processors to promote to folks at a diminished price and it subsidised for the processors.

“If that occurs right here, will probably be a win-win for the authorities, the processors, farmers and the folks in the quick run. But in the future, the authorities must do quite a bit on agricultural extension companies.

“At the current price we are buying paddy, the lowest we can sell our finished product, if we must pay salaries, electricity bills and other essential costs, is N58,000. If we sell at anything less than this, we will run at a loss,” he defined.

He alleged that one among the issues they confronted as millers in the nation was the selective waiver given to a person to deliver brown rice into the nation. He argued that this could proceed to place each millers and farmers able to be shortchanged. Except the authorities grants waivers to all millers to import brown rice, it’s one other method to make rice cheaper in the nation. And our farmers must be empowered in order that they’d not be shortchanged in that association.

A rice miller, Malam Ahmad Muhammad, mentioned various each giant built-in mills and small and medium-scale processors have been working beneath their put in capability due to many challenges.

He mentioned excessive vitality price had additionally emerged as a serious burden as rice milling requires substantial electrical energy for parboiling, drying, milling and packaging. According to him, unreliable public energy provide has compelled many operators to depend upon diesel-powered turbines, rising manufacturing price.

“With the current situation, having a controlled price of rice is almost impossible without regulating and controlling energy sources and their availability. The rising cost of diesel has increased production expenses and squeezed profit margins,” he famous.

Another miller mentioned fixing the price of rice had grow to be tough as a result of a tonne of paddy presently prices between N450,000 and N480,000. He mentioned the price was not secure, with indications that it may rise additional.

He additionally mentioned rice processors have been going through rising competitors from imported and smuggled rice, which he mentioned was creating an unfavourable atmosphere for wholesome competitors. He defined that cheaper imported rice would all the time put strain on regionally processed commodities, making it tough for home millers to recuperate their rising manufacturing price.

The Managing Director of Umza Rice Mills, Kano, Alhaji Abubakar Muhammad, mentioned rice millers alone wouldn’t be capable to crash the price of rice as requested by the federal authorities, noting that price of manufacturing should even be addressed.

According to him, millers are spending some huge cash on public provide of electrical energy and turbines to run the rice mills, which provides to the manufacturing price that interprets into the rice price. He mentioned Umza Rice Mills spent roughly N100 million to cowl electrical energy payments in a month, which if added to diesel for his or her turbines, would practically double the quantity.

“This is despite the fact that the public supply of electricity is unstable. From the time I entered my office today, there were power interruptions more than 10 times. How can you do something meaningful under such a situation? You still have to use generators that consume diesel, a very expensive commodity. All these add to your production cost,” he defined.

Umza Rice Mill, situated alongside the Kano-Zaria highway, was constructed by Alhaji Abubakar Maifata, with the functionality to mill 430,000 metric tonnes of paddy yearly.

He argued that rice farmers might abandon their farms subsequent farming season if they might not recoup their investments on account of makes an attempt to crash the price with out due regard to the price of manufacturing.

‘Millers alone cannot crash rice price’

“If a farmer who spent a humongous amount to buy fertilisers and other inputs realises that he is selling his rice at a loss, he may not go to the farm next farming season; and rice will ultimately not be available for millers,” the managing director mentioned.

A member of the Rice Processors Association of Nigeria who most well-liked to not be named, mentioned the authorities shouldn’t inform millers to crash rice costs when final 12 months, in a bid to crash the price, it entered into an settlement with the Indian authorities by means of high-level diplomatic negotiation to take away a 30 per cent levy on semi-processed rice and allowed just one or two individuals to import semi-processed brown rice into the nation.

In comparable vein, the RIFAN chairman in Kebbi State, Yusuf Argungu, additionally maintained that besides the authorities got here up with a coverage to make sure the availability of paddy for rice millers in the nation, its effort to deliver down rice costs might not yield any outcome.

He burdened that for a while now, a lot of the rice-producing states couldn’t produce paddy for the millers to purchase. He argued that the shortage of paddy for the millers’ completed product had not helped to deliver down the price of rice price.

According to him, proper now, most of the rice-producing states have insecurity points. Many of the mills don’t have any paddy to course of of their warehouses. And the larger the demand, the larger the price. “If paddy is available, the price of rice will definitely fall. I think what the government should do is to empower farmers across the country. If they are empowered, they will go to the farms to produce more paddy for our local mills; and they will get more paddy to process,” he mentioned.

Warning in opposition to the importation of rice into the nation, the RIFAN chairman mentioned: “If the government empowers farmers and gives subsidies to rice mills, we will meet the required rice needs of the country. The price being proposed by the federal government is only possible if they could meet the needs of both the farmers and millers”.

He added that the authorities ought to give you a coverage for farmers to provide extra rice to feed Nigerians and even export the extra to different international locations.

“The rice-producing states can meet the rice need of the country if government comes in to support them. The Anchor Borrowers Programme of the administration of the late President Muhammadu Buhari was good but not well implemented. It didn’t work because people were owing and refused to pay back their loans. If it was well utilized, we would have enough rice in the country. Imagine that a well known rice mill like WACOT does not have paddy to process. Their warehouses are empty. Government needs to come in to enhance more rice production in the country,” he additionally mentioned.

A rice farmer and member of the Rice Farmers Association of Nigeria, Aminu Bashir Warawa mentioned rice farming wanted sturdy and sustainable authorities help to assist stabilise costs. He added that insecurity had compounded the drawback by disrupting the motion of farmers, merchants and transporters.

Warawa mentioned banditry and different prison actions in components of the North had made it tougher for farmers to entry their fields and millers to move paddy from producing communities to processing centres.

He additionally mentioned the excessive price of fertiliser and different agricultural inputs had made rice farming more and more costly, forcing some farmers out of manufacturing and contributing to the rising price of paddy in the open market.

“Addressing the problems requires a coordinated approach involving improved security in farming communities, access to affordable finance, reliable electricity, better rural roads, improved paddy aggregation and storage facilities, as well as stronger links between farmers and millers,” Warawa mentioned.

He added that insurance policies geared toward selling home rice manufacturing should have in mind the working price confronting processors, warning that elevated manufacturing at the farm stage won’t translate into aggressive and reasonably priced regionally milled rice with out addressing the challenges going through millers.

‘FG should not impose price’

An economist, Ibraheem Maigari, has suggested the federal authorities in opposition to imposing direct controls on the price of rice, saying such a coverage may discourage farmers and millers from investing in the sector. Maigari mentioned the authorities ought to as a substitute deal with the main elements driving up the price of rice, together with the price of paddy, fertiliser, vitality, transportation and different manufacturing inputs.

He mentioned lowering these prices would allow farmers and rice millers to function profitably whereas making the commodity extra reasonably priced to customers.

According to him, rising home rice manufacturing stays one among the sustainable methods of addressing excessive costs. He burdened the want for the authorities to spend money on irrigation, rural roads, storage amenities, reasonably priced credit score and improved safety for farmers.

 “The government should address the factors responsible for the high cost of rice rather than simply fixing the selling price. If production and distribution costs are reduced, consumers will ultimately benefit from lower prices,” he mentioned.

Maigari additionally urged the authorities to contemplate focused help for susceptible households whereas pursuing measures to extend rice manufacturing, warning that extreme price controls may lead to shortages and warp the market.

He mentioned any intervention in the rice sector ought to strike a steadiness between defending customers from excessive costs and guaranteeing that farmers, millers and different gamers in the worth chain stay inspired to proceed manufacturing.

‘Government should provide incentives, not compel businesses to support policies’

The authorities ought to present tax holidays, low-interest loans and dependable infrastructure to producers and different companies as a substitute of anticipating them to help its insurance policies with out making a conducive atmosphere for worthwhile operations, a human rights activist, Debo Adeniran, has mentioned.

Adeniran mentioned companies can be extra keen to cooperate with the authorities if they might make affordable earnings, meet their obligations to employees and maintain their operations.

“Government has the prerogative of determining what policy they want to introduce and implement, but they don’t have the prerogative of determining which private individuals or companies will cooperate with them in the implementation of that policy,” he mentioned.

He argued that the enterprise atmosphere in Nigeria had not been absolutely developed to allow producers, rice millers and cottage industrialists to function profitably.

He mentioned the authorities ought to introduce mushy loans for small-scale industries and supply producers with entry to credit score at little or no curiosity. 

According to him, dependable electrical energy and good roads would scale back manufacturing and transportation prices, enabling companies to function extra effectively and help authorities programmes.

He mentioned the authorities may additionally set up industrial villages the place artisans and small-scale producers, together with welders, furnishings makers and cleaning soap producers, may entry gear and amenities at reasonably priced charges.

Adeniran additional mentioned the authorities may purchase produce from farmers at worthwhile costs and launch it to the public at decrease costs in periods of shortage.