- Sad, bad. Local rice producers take their destiny in their hands; plan price cut
The cost of 50kg of locally produced rice which currently sells at N13,500 to N15,000 is about to go further down to N10,000 if the plan of Rice Farmers Association of Nigeria (RFAN) and Rice Producers Association of Nigeria (RPAN) becomes a reality before Christmas. According to the leaders of RIFAN and RIPAN, the plan derives from a decision by rice producers to confront smuggling of foreign rice into the country, despite government’s total ban on importation of rice.
The resolution of the rice farmers and millers to get into a price war with distributors of imported rice has several implications. One, the policy will make the price of local rice competitive with that of rice smuggled from India and Thailand through Niger Republic and Republic of Benin. Another likely implication is that rise in the sale of local rice may encourage farmers and millers to produce more and make rice affordable to the average consumer of the product. Production of more rice will not only bring the price of rice down for consumers, it may also stimulate processing of secondary products from raw local rice while adding to jobs in the manufacturing sector as well.
But if the efforts of rice producers to bring price of the produce down is to achieve its goals, governments and their agencies ought to buy into saving the budding agricultural revolution started only four years ago and whose benefits citizens have been seeing in the last two years, especially noticeable fall in the price of rice since the end of 2017. First, the government should study the policy proposal of RIFAN/RIPAN in respect of giving additional support to rice producers to make their produce competitive through improved technology in the farming and milling of rice.
More important is the need for the Federal Government to fight smuggling with as much energy as it has promised to devote to fighting other political and bureaucratic corruption. It is sad and embarrassing that smuggling of rice into the country, even about two years after the ban on its importation seems to be as efficient as it was before 2015. It is not economically logical that India and Thailand, the two sources of smuggled rice, would be in a position to sell smuggled rice for 40% less than the price of local rice, given higher minimum wage in Thailand and the cost of transporting rice, not to talk of cost of smuggling the commodity into Nigeria.
One form of corruption that the Federal Government must fight with vigour is smuggling. For one reason, an act that has not already taken place can be prevented, and without necessarily getting stuck in court processes. It is a shame on the country’s customs service if enough rice is still being smuggled through the coast and the Sahel. Apart from the urgency to reform the service through deployment of proper technology before smuggled rice reaches Nigeria, it is not only vital for the government to change the culture of the customs as an organisation; it is also crucial for government to improve the character of the men and women admitted to this agency that is vital not only to the country’s economy but also to its security.
Smuggling of rice via two neighbouring countries with historical and cultural ties with Nigeria is an indictment on our customs, which seems unable to check illegal flow of rice into the country. If Benin and Niger republics are feeding fat on Nigeria through criminal acts, it is a no brainer that this is happening because of the failure of our system of controlling Nigeria’s borders.
Leaving local rice producers at the mercy of smugglers could be a major disincentive to local farmers, because the farmers and millers may find it more difficult to repay their loans or meet other obligations that can sustain local production of more nourishing rice than imported brands not subjected to Nigeria’s quality control. Allowing smuggled rice into the country also threatens the jobs of millions of citizens already engaged in rice production.
We hope the government will rise to the occasion to make our rice farmers reap the fruits of their labour. Failure to make the customs do its part would make a mess of government’s agricultural dreams.
