Native Rice Manufacturing Declines as Value Skyrockets
In keeping with a brand new report, rice consumption has been steadily rising, exceeding native provide, leading to a provide hole of about two million metric tonnes per yr.
This has led to an over 37 per cent improve within the worth of the commodity thus far in 2023. This was revealed in ‘AFEX Moist Season Crop Manufacturing Report for 2023.
The agency stated, “Rice consumption in Nigeria has been steadily rising, aligning with the constant development of the rice market, almost matching the annual inhabitants development projection of two.6 per cent at two per cent. This has led to a provide hole of about 2 million metric tonnes yearly.”
Thus far, Nigeria has spent over $15bn up to now decade to satisfy its increasing rice consumption, regardless of its potential to be a web rice exporter, the agency acknowledged.
Globally, rice costs reached their highest level in almost 12 years in 2023, primarily because of India’s ban on rice exports and the potential affect of El Nino on manufacturing in key areas. These elements, together with rain-induced disruptions and variations in high quality throughout Vietnam’s summer-autumn harvest have additional contributed to the worth surge.
It famous, “An analogous pattern is noticed in Nigeria, the place the worth of rice has elevated by over 37 per cent year-to-date, pushed by diminished manufacturing in 2022 as a result of results of flooding in the course of the moist season of that yr.” The agency additionally blamed the rise in costs on flooding and the ripple impact of the worldwide market dynamics.
It, nevertheless, expects a rise in manufacturing of rice by roughly 4 per cent, and an additional improve within the worth of paddy rice by as much as round 32 per cent.
The agency declared that the manufacturing of milled paddy rice has seen a outstanding improve of over 35 per cent within the nation, reaching an estimated output of 5.4 million metric tonnes in 2022, up from 3.9 million metric tonnes in 2015. Whereas rice is cultivated throughout all of Nigeria’s agro-ecological zones, the Northwest area accounts for 72 per cent of the full rice manufacturing within the nation.