The average price of imported high-quality rice has surged by 144.77 percent year-on-year as the Federal Government delays implementing its duty-free food policy.
This is according to the selected food prices report from the National Bureau of Statistics.
In July 2024, the Federal Government announced a 150-day duty-free import window for food commodities as it stepped up efforts to tackle rising inflation, which had impoverished many Nigerians.
The commodities include maize, husked brown rice, wheat and cowpeas.
Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price.
Although there are claims and reports that the policy has started, the government has not officially made this public, as efforts to get it confirmed have remained unsuccessful.
However, since the announcement, the price of one kilogramme of imported rice has risen by 3.21 per cent, climbing from N2,329.05 in July to N2,403.86 in September.
It was N982.07 per 1kg in September of last year, which means that the average price has more than doubled in one year.
The average price of 50kg (one bag of imported rice) has moved from N49,103 in September 2023 to N120,193 this year.
It was observed that Kogi recorded the highest price for 1kg of imported rice at N3,180.99, while Katsina posted the lowest at N1,892.33 in September 2024.
Other categories of rice have also witnessed price increases since the July announcement.
Agric rice sold loose rose from N1,882.39 to N1,965.64 in September, marking a 4.42 per cent rise.
Year-on-year, this represents a 146.33 per cent jump from N797.98. Nasarawa recorded the highest price at N3,050.33, while Benue had the lowest at N1,314.13.
Broken rice (Ofada) saw a 5.61 per cent increase from N2,234.06 in July to N2,359.47 in September, with a steep 213.36 per cent increase over the past year.
Osun posted the highest price at N3,300, while Adamawa recorded the lowest at N1,375.
The price of locally sold rice continued on the same inflationary path. Loose local rice increased by 4.57 per cent, rising from N1,831.05 in July to N1,914.77 in September.
This reflects a 152.92 per cent increase compared to N757.06 a year ago.
Kogi posted the highest price at N2,688.04, while Benue had the lowest at N1,229.14.
Medium-grain rice also recorded a 3.83 per cent increase from July, with prices moving from N1,924.76 to N1,998.39.
On a year-on-year basis, the price rose by 147.66 per cent, with Kogi reporting the highest price at N2,836.52, while Katsina had the lowest at N1,515.38.
Maize prices have not been spared from inflationary pressures.
White maize grain, which was priced at N1,028.33 in July, rose by 3.58 per cent to N1,065.14 in September, representing an 87.88 per cent increase from N566.93 in the same period last year.
Kwara recorded the highest price at N1,440.31, while Adamawa posted the lowest at N675.
Yellow maize grain increased by 2.69 per cent from N1,037.45 in July to N1,065.33 in September, with an 88.93 per cent rise over the past year.
Kwara and Adamawa registered the highest (N1,388.84) and lowest (N775) prices, respectively.
The rising trend extended to wheat flour, particularly Golden Penny’s 2kg pack.
Its price increased by 2.45 per cent from N3,485.34 in July to N3,570.75 in September. Year-on-year, the price rose by 135.56 per cent, from N1,515.88 in September 2023.
Niger State recorded the highest price at N5,357.93, while Plateau had the lowest at N2,445.96.
The Federal Government’s plan to reduce the price of food commodities through the implementation of a zero per cent duty and exemption from value-added tax on selected basic food items is increasingly becoming difficult to achieve.
The challenge is underscored by the alarming increase in the average price of imported food items, which rose to 878.3 price point index in September 2024, reflecting broader economic pressures.
The idea was to remove or significantly reduce import duties and value-added tax to encourage an inflow of food imports and drive down consumer prices.
However, the scheme failed to take off three months after the government announced the plans.
The government’s bureaucratic process and the failure of the Federal Ministry of Finance to publish a list of importers qualified to participate in the process as required by the guidelines earlier issued by the Customs in August were cited as reasons for the delay in the commencement of the scheme.
The sustained increase in food prices since July highlights the impact of inflation and the policy uncertainty surrounding the government’s delayed duty-free policy.
With rice serving as a staple food across Nigerian households, the rising prices are causing significant strain on consumers.
NBS inflation data further showed a sharp rise in both food inflation and imported food inflation in September 2024.
The Food Price Index climbed by 37.7 per cent, rising from 737.3 in September 2023 to 1,015.8 in 2024.
Imported food inflation also experienced a substantial increase of 39.5 per cent, with the price index rising from 629.6 in September 2023 to 878.3 in 2024.
This means that in September 2024 while food inflation is at 37.7 per cent, imported food inflation is at 39.5 per cent.
The hike reflects the combined effects of a weakened naira, elevated import costs, and the delay in implementing the Federal Government’s zero-duty policy on food imports. – Punch.
