[size=13pt]Rice imports down 95% on local production, smuggling[/size]

The volume of rice imported through the five major dry bulk terminals that handle rice in Lagos seaports (Apapa and Tin-Can Island ports) has been dwindling in the last nine months, BusinessDay investigation has revealed.

According to the Nigerian Ports Authority’s daily shipping position, an estimated 87,750 metric tonnes (MT), were brought through the seaport between January and September this year, as against 1.78 million metric tonnes in the corresponding period of 2012.

BusinessDay learnt that the volume of rice produced domestically is slightly growing on the back of the incentives rolled out to farmers by the Federal Government to achieve the target of reducing the quantity of imported rice by 50 percent in 2015. Some state governments, like Ebonyi known for the processing of Abakiliki rice, are also investing in the cultivation and processing of rice in their states.

Specifically, statistics from Federal Ministry of Agriculture revealed that Nigerians consume about 5 million metric tonnes of rice annually, which amounts to about 100 million 50kg bags of rice. Currently, the minimum price of 50kg bag of rice is about N10,000, showing that rice consumption in the country is in excess of N1 trillion annually.

Also, about 2.9 million metric tonnes (approximately 58 million 50kg bags of rice) are expected to be the quantity for domestic production, while the remaining 2.1 million metric tonnes (about 42 million 50kg bags) of rice are imported into the country through the seaports annually at a value of N360 billion.

Joseph Mbah, an Abakiliki-based rice farmer and dealer, who sounded pessimistic about Nigeria’s ability to meet the 2015 target of reducing the volume of imported rice, said the biggest problem to domestic production was the poor volume of domestic processed rice. He confirmed that the volume of rice grown locally had been growing slightly in recent times, but was yet to impact on the processed volume.

The scenario has created a loophole for smuggling business to thrive as the larger chunk of imported rice that is currently consumed by Nigerians is smuggled through the land borders. Here, importers avert duty payment and illegally bring their goods into Nigerian market through the land borders with Benin, Cameroon, Niger and Chad. This is happening at the time when there is a ban on importation of rice through the land border.

Reacting to this, Vicky Haastrup, the executive vice chairman of ENL Consortium, a leading dry bulk cargo terminal in Nigeria that handles imports like rice, wheat and others, said government import policy has succeeded in chasing away much of the expected cargo throughput at the nation’s seaports to the ports of neighbouring countries of Benin, Togo and Ghana.

According to her, the current import policy on rice resulted to high duties and levies paid on imported rice such that Nigerian importers now prefer to divert their cargoes to ports where it is cheaper for them to clear and smuggle the product into the country.

“Importers who patronise ports of neighboring countries are doing so because of policies of government. As at the month of August, ENL Consortium had only handled one shipment of rice throughout this year. Ordinarily, people will not go to Republic of Benin and others to take delivery of their cargoes if our ports are much cheaper and more efficient,” she said.

Tony Anakebe, a renowned clearing agent, believes there is need for the country to protect her agricultural sector through favourable fiscal policies, suggesting that the Federal Government needs to find a meeting point between importation and domestic production of rice.

Anakebe notes that pending when Nigerian farmers grow the required capacity to produce the quantity of rice that can feed at least 90 percent of the entire population, the government needs not cripple the import market and lose revenue to other countries.

By: AMAKA ANAGOR

I have always been against GEJ but this is wonderful news! Such a shame that previous governments depended on only oil and allowed other sectors to suffer.
It's such an honour being the first among others. To all who wanted this position, if I can make it, you too can make it. Tenk.

GEJ is not eloquent, agreed but he made a promise during his campaign that he will work with the best brains to move the country forward and l see it in every appointment he makes. Akinwunmi Adesina came from the FAO unlike what is obtained in the past where ministerial positions are filled with politicians. God bless GEJ, God bless Nigeria (The above statistics is actually hyped; the actual statistics stands at between 50 - 55 percent).

Nigerians eat 5million metric tonnes ... no wonder their........

Imagine,we consume 100million bags of rice yearly.If
for instance we are self sufficient in rice production,the
N1 trillion we spend importing rice would have revolved
around our local farmers thereby enriching them.
Nigeria is really a sleeping giant.

Great news. But the challenge now is how to deal with the smuggling?

How I wish fellow Nigerians will see the BIG picture and recognise how our INDIVIDUAL bad behaviour hurts the nation in the end. The custom officers who are currently collecting bribes at the various borders to permit illegal movement of rice will TOMORROW join the "ordinary masses" and "children of anger" in complaining and condemning govt for high unemployment rates and maybe lack of jobs for their children, forgetting that their activities as customer officers contributed to worsening of the unemployment rate in the country.

I think smuggling would die the moment local rice becomes available in large quantities such that the price becomes cheaper than the smuggled brand. Smugglers would suddenly find it too expensive a business to engage in and automatically back out.

PapaBrowne: I think smuggling would die the moment local rice becomes available in large quantities such that the price becomes cheaper than the smuggled brand. Smugglers would suddenly find it too expensive a business to engage in and automatically back out.

Exactly. Who dare to smuggle garri into this country?

This is one area where I'd score the GEJ-led administration a B+. It is difficult to deny the country has been some great strides towards reducing its dependency on foreign food imports.

I love osikapa (as my Onitsha Aunt calls it).....esp' with chicken!

Nice to see Abakaliki is getting in on the action, and it's kudos to the Elechi administration which continues to impress me!

Nonsense

The only reason smuggled rice will decrease is when we are able to match cost for cost, without which ppl. Will smuggle the product, For a fast buck.just take a look @ those goods coming from our porous border.

What they need to do now is ensure the quality meets world standards; and we should also pray there's no floods that would ruin/reduce the harvest!

eGuerrilla: This is one area where I'd score the GEJ-led administration a B+. It is difficult to deny the country has been some great strides towards reducing its dependency on foreign food imports.

Don't be deceived by paper policies, find out from those on ground, you will get a clear picture.

IGBO-SON:
What they need to do now is ensure the quality meets world standards; and we should also pray there's no floods that would ruin/reduce the harvest!

Flood favours rice production

Theben:
Flood favours rice production

^^^Yeah?.....a part of me was wondering if that was actually the case!

eGuerrilla: This is one area where I'd score the GEJ-led administration a B+. It is difficult to deny the country has been some great strides towards reducing its dependency on foreign food imports.

more confesions pls

I know for a fact that the coming years inevitably portends well for Nigeria's agric sector especially Rice production. I'm currently involved in some vital research work with a carefully selected team of elite researchers drawn from local tertiary institutions investigating Rice cultivation in the country and as a reseacher, I can tell you guys that this is one of the most comprrehensive and well intended study I've come across.
Nigerians just somehow have to look beyond petty politics and see what's going on around them, the current minister of Agric IMO is one of the best things to happen to this country. We are staring at a TOTAL turnaround in our 'Rice Fortunes' in less than 4 years! When you add the Agric revolution to the transformations in the Power, Transport, increased fiscal and financial responsibility and imminently, a change in fortunes in the Petroleum sector you'd have to admit that there's no stopping this potentially Great country.

grafikii:
Don't be deceived by paper policies, find out from those on ground, you will get a clear picture.

I was about to second eGuerilla's post until I saw yours.
I have been eating rice in cafeterias, ceremonies and other events. I rarely come across our locally grown rice. Personally, I'd prefer the local ones to the imported because I heard it's nutritious and more palatable. But I rarely some across them, not even in markets.

Please guys,Adesina once harped about importing of High quality Rice mills from China before the year ends..and this mills will be distributed to indigenous processors at reduced cost...

My question is how far with this plan...is it still active?..If yes when exactly are the mills expected into the country...

awodman: Please guys,Adesina once harped about importing of High quality Rice mills from China before the year ends..and this mills will be distributed to indigenous processors at reduced cost...

My question is how far with this plan...is it still active?..If yes when exactly are the mills expected into the country...

If you read my initial post you'll notice I used the word 'comprehensive' to describe the ongoing research on rice farming. The research work covers virtually every aspect and will point out specific areas of need according to the various regions. So far from the little I've seen - work is still in collation stage - The major area of concern in the SS region is flooding and low to virtually no use of fertilizers yet these guys still churn out tons of rice every 6 months using crude implements! The prospects are just awesome. The trouble of mills for now is secondary as there aremore fundamental issues to be tackled but I assure you that the problems are being handled wholistically.

I can't agree less cos there have been a lot of activities in local rice industry. The impact of agric development is been felt across the country.
Join the agriculture community on www. and interact with farmers and other agriculture professionals in the agric value chain. You can also download useful books on agric production by becoming a menber.

Nigeria’s agric revolution notches higher as 30,000-ton rice mill berths in Kwara

Nigeria’s agricultural transformation agenda is set for a
major boost with the coming on stream of Quarra Rice Mill, one of the country’s largest rice processing mills, to meet the rapidly growing domestic rice demand.

The mill, which has an annual capacity of 30,000 tons of
paddy rice, is operated by Quarra Rice Limited, which
expects to process 150,000 tons per year by 2018.
Located in Tsaragi, Kwara State, within a 100-kilometre
radius of Nigeria’s most fertile rice growing territory, the
mill’s output of parboiled rice and rice flour will be sold
domestically to help alleviate food security concerns and
substitute for expensive imports.

The United States Department of Agriculture estimated
level of import of rice in Nigeria is 2.7 million tons of rice
per annum. Nigeria produces 2.85 tons of milled rice and
4.524 million tons of paddy rice per year.

Quarra Rice Limited’s target output quantity accounts for
around 3.6 percent of the nation’s yearly rice imports as it is uniquely positioned to drive higher productivity and
serve as an example of commercially successful yet
sustainable agricultural investment in Nigeria.

Abdulfatah Ahmed, Kwara State governor, at the
commissioning of the mill on Thursday, said it was
alarming that Nigeria continued to spend about $2 billion
annually on importation of roughly 2 million metric tons of
rice, wasting scarce foreign exchange and stunting growth of local agriculture, while accelerating the growth of foreign economies.

He noted that the Quarra rice mill would contribute
towards meeting local demand for rice in the country and
further deepen the depth of commercial agriculture.

“While the Federal Government is doing a lot to grow
commercial agriculture in Nigeria, more still needs to be
done to local agribusinesses such as Quarra rice to boost
food security,” he said, adding that structured and
carefully planned agricultural reforms are very critical.

While noting that the bane of agricultural development in
the country is the complete disconnect between the
farmers and utilisers of agriculture produce, the governor
said that only through structured commercial farming can
the country adequately feed the people and guarantee
their economic prosperity.

According to Adewunmi Adesina, minister of agriculture
and rural development, at the event, 9 million metric tons
of food was added in 2012/2013 to the nation’s domestic
food supply, which is 80 percent higher than the annual
target of 5 million metric tons that had been set.

“Food imports declined by N857 billion by the end of 2012; for example, the nation’s import bill for wheat, rice and sugar was down by $3 billion in 2012. Agric exports
expanded by 822,000 metric tons in 2012, as the sector’s contribution to non-oil exports expanded by N759 billion,” said Adesina, who was represented by Ike Azogu, executive director of National Centre for Agricultural Mechanisation.

Source:businessdayonline.com/2013/09/nigerias-agric-revolution-notches-higher-as-30000-ton-rice-mill-berths-in-kwara/

Realdeals: I can't agree less cos there have been a lot of activities in local rice industry. The impact of agric development is been felt across the country.
Join the agriculture community on www. and interact with farmers and other agriculture professionals in the agric value chain. You can also download useful books on agric production by becoming a menber.

Interesting Agric forum. I commented on this thread primarily to bookmark d forum. It is great there is an online forum where Nigerian Agriculturalist gather to discuss and share... I wud be visiting it often. Thnks for sharing

PapaBrowne: I think smuggling would die the moment local rice becomes available in large quantities such that the price becomes cheaper than the smuggled brand. Smugglers would suddenly find it too expensive a business to engage in and automatically back out.

No bros,
Smuggling won't die, the direction will rather change. Nigerians will stop smuggling rice in, but the will smuggle it out or die trying. lol

Nice work by the FG, nay, GEJ!

awodman: Nigeria’s agric revolution notches higher as 30,000-ton rice mill berths in Kwara


Source:businessdayonline.com/2013/09/nigerias-agric-revolution-notches-higher-as-30000-ton-rice-mill-berths-in-kwara/

Woo!!! Great info, Bro.... Anybody hv any info on d progress work of Domino farms and RiceMill in Taraba??

For me the government are doing the right thing.I know of someone who made 1.2mil from rice he sold to this have never been like this before. personal I am going into rice farming to argument my income.

Sincere 9gerian: Great news. But the challenge now is how to deal with the smuggling?

How I wish fellow Nigerians will see the BIG picture and recognise how our INDIVIDUAL bad behaviour hurts the nation in the end. The custom officers who are currently collecting bribes at the various borders to permit illegal movement of rice will TOMORROW join the "ordinary masses" and "children of anger" in complaining and condemning govt for high unemployment rates and maybe lack of jobs for their children, forgetting that their activities as customer officers contributed to worsening of the unemployment rate in the country.

the simple analogy of wht they are saying is that import of rice through the nigerian port has decreased, nt actually the influx of foriegn rice or imported rice has decreased. If we are really serious about rice sufficiency, we would see fully processed rice (to healthy standard) in nigeria and it wont be hidden. No one will hid his products. If D govt is serious they either buy or make standard processing plant 4 rice farmers as most are peasant farmers and even D bigger ones dont have d money to acquire proper rice processing plants. Whn the farmers are competent in rice processing then D govt shuld closed importation fully. All through D market, u still find foreign rice even to villages. Summugling of rice through D border is nt an excuse. It shows further D failure of government in all ramfications. Rice importation reduce 95% whn D farmers are just recieving fertilizer.

For me the government are doing the right thing.I know of someone who made 1.2mil from rice he sold it has never been like this before. personal I am going into rice farming to argument my income.

What Obasanjo couldn't do as a potential farmer in his 8 years Jonathan is fixing under 3 years, he is not brilliant they say, yet he created Sure-P from oil subsidy to empower youths, he created YouWin to grant soft loans to youths, he created working environments in the Agricultural, financial, manufacturing, tourism, downstreams, transport sectors...and this is the man they called 'clueless' I declare woe unto those 'Southern Nigerians' clamouring for the return of the 'Funky Mallams'!

Messi j: the simple analogy of wht they are saying is that import of rice through the nigerian port has decreased, nt actually the influx of foriegn rice or imported rice has decreased. If we are really serious about rice sufficiency, we would see fully processed rice (to healthy standard) in nigeria and it wont be hidden. No one will hid his products. If D govt is serious they either buy or make standard processing plant 4 rice farmers as most are peasant farmers and even D bigger ones dont have d money to acquire proper rice processing plants. Whn the farmers are competent in rice processing then D govt shuld closed importation fully. All through D market, u still find foreign rice even to villages. Summugling of rice through D border is nt an excuse. It shows further D failure of government in all ramfications. Rice importation reduce 95% whn D farmers are just recieving fertilizer.

I dont know about your place but here in Enugu, the market is flooded with local rice (fully labelled with PROUDLY Nigeria). Even SOME of the so called foreign rice are re-bagged local rice (I've personally heard this from distributors).

Messi j: the simple analogy of wht they are saying is that import of rice through the nigerian port has decreased, nt actually the influx of foriegn rice or imported rice has decreased. If we are really serious about rice sufficiency, we would see fully processed rice (to healthy standard) in nigeria and it wont be hidden. No one will hid his products. If D govt is serious they either buy or make standard processing plant 4 rice farmers as most are peasant farmers and even D bigger ones dont have d money to acquire proper rice processing plants. Whn the farmers are competent in rice processing then D govt shuld closed importation fully. All through D market, u still find foreign rice even to villages. Summugling of rice through D border is nt an excuse. It shows further D failure of government in all ramfications. Rice importation reduce 95% whn D farmers are just recieving fertilizer.

Negative mindedness allows you to see only the smuggling despite reading the fact that production has gone up considerably.
FYI, government is already in the process of installing rice mills across the country. I personally don't know the modalities involved but I hope it would be run by the private sector.
Truth is the agricultural sector is experiencing a revolution right now and its evident in the number of young people suddenly seeking to get involved in Agriculture. Everything from Rice to Cassava to Plantain to Palm Oil is receiving immense attention from entrepreneurs of today.

Government under Adewunmi is working terribly hard to succeed in Agriculture and the results are pretty obvious.