Stakeholders Predict Increase In Global Rice Price As Floods Ravage Farms 

There are indications that the prices of rice, a common staple food in Nigeria, will increase astronomically. 

Apart from the climatic hazard such as flood that is affecting the production of the produce worldwide, the removal of petrol subsidy and devaluation of the Nigeria naira, are other factors that are contributing to the surge in the price of the product in the country. 

The issue of flood ravaging farmlands is not only peculiar to Nigeria, as Bangladesh, the world’s third-largest rice producer, which typically produces nearly 40 million tons of rice a year to feed its population of 170 million, was also hit recently. 

It would be recalled that floods in Bangladesh have destroyed an estimated 1.1 million metric tons of rice, according to data from its agriculture ministry, prompting the country to ramp up imports of the staple grain amid soaring food prices. 

Floods brought by heavy monsoon rains and torrential upstream runoff struck the country in two major waves in August and October, claiming at least 75 lives and affecting millions, particularly in the eastern and northern regions where crop damage has been the most severe. 

In separate interviews with stakeholders, Nigerians have been advised to brace up and expect an increase in the prices of rice. 

Dr. Biodun Onalaja, the Chairman and CEO of Hyst Global Business Limited (Producer, Okun Rice), in his view said that this will cause more scarcity of paddy rice and hike in the price of paddy rice both internationally and locally. 

He said that the supply of paddy rice world-wide has reduced, and that the demand for paddy rice will be more than the supply for paddy rice which will force the market price for paddy rice to increase. 

He also pointed out that the local farmer will prefer to sell to the international market rather than to the local market due to price differences. 

“The impact of this on the staple food in Nigeria is that there will be scarcity of paddy rice,” he said. 

Onalaja, on his Okun Rice Mill, said that the mill has the capacity to produce 100 metric tonnes of high quality rice daily in various packing options from 1kg to 50kg. 

He noted that the enterprise is aimed at creating employment opportunities and achieving sustainable food production in the country and that the Okun Rice will be available for purchase as from Mid-November. 

He called on rice farmers to bring their paddy rice for processing. 

Also, AfricanFarmer Mogaji, the Chief Executive Officer of X-Ray Consulting, in his view said that the flooding issues across the country also affected the country’s rice production this year. 

He said that the recent ban on grain exports into Nigeria by the Niger government is another threat to millers, stressing that Nigeria still does not grow enough rice to feed its population. 

“The Niger government has placed a ban on grain exports to Nigeria. This means millers will not have enough paddy for their mills as bulk of it comes from neighboring countries,” Mogaji said. 

Mogaji also said that the government is yet to fix issues of insecurity, as kidnapping has been a major threat to food security in the country. 

He stated that millers cannot ramp up production if farmers fail to increase their production, stressing that lots of farmland was abandoned owing to issues of insecurity. 

However, a market survey revealed that the price of 50kg rice now sells for between N80,000 and N92,000 depending on the brand.