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Rice: Stakeholders seek action plan on new tariff

By BusinessNews Staff on March 1, 2014

Rice farmers and millers have called on the Federal Government to urgently implement the new tariff on rice importation.

According to some of the stakeholders, the non-implementation of the $190 per metric tonne tariff on imported rice by the Federal Government has continued to give consumers, farmers, freight forwarders, millers and importers nightmares as smuggling of the food item continues to rise.

The Secretary of the Rice Millers, Importers and Distributors Association of Nigeria, Alhaji Shaibu Mohammed, said the government’s reluctance to take action on the new duty was largely responsible for the thriving of smuggled rice, which had continued to flood the local markets.

He said over 20 vessels conveying the product were intercepted in the country’s territorial waters.

“The situation has resulted in a massive loss of revenue both to the government and importers. It is claimed that over three million tonnes of parboiled rice was smuggled to Nigeria through Benin Republic last year. Over N300bn revenue loss to the Federal Government was incurred while Benin Republic and others allegedly gained over N200bn via smuggling,” he said.

Although he noted the rice produced and processed in Nigeria remained the best quality product that consumers could get, the smuggled rice from neighbouring countries such as the Republic of Benin was discouraging local production of rice.

The Chairman, Rice Millers Association of Nigeria, Mr. Mohammed Abubakar, said, “We all agreed at the meeting to introduce palliative duty and incentive in the sector to reduce smuggling of rice. Somewhere along the line, someone is holding the entire nation to ransom.

“We urged the President, as a listening leader, to intervene in the issue. Smuggling is not only affecting the farmers; but it is also killing them.”

Similarly, the Chairperson, Rice Dealers Association of Nigeria, Mrs. Esther Olumilayo, stated that there was an urgent need to ensure the availability of the product as a demonstration of the government’s commitment to its transformation agenda, especially as it affected the agricultural sector.

The stakeholders said the government was paying lip service to the sector without any tangible instrument on ground to support the policy.

The new tariff was reportedly decided at an inter-ministerial committee which had the Presidential Committee on Trade including the Nigeria Customs Service, Ministry of Industry, Trade and Investment, Ministry of Agriculture, Ministry of Finance and the Budget Office.

[Punch]

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