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Price of Rice Hiked 20% as FG Clamps Down on Imports

By on November 27, 2012

As a result of the Federal Government’s  agricultural policy to stop the importation of rice and encourage its local production the price regime  has been affected by an increment of 20%.

The price which used to be pegged at N7,500  per bag when imported has increased to N9,000  based on a new benchmark set by the Federal Government.

Government explained that the decision was taken to encourage the production and consumption of rice and thereby curb the excessive importation which costs the country over N200 billion annually in expenditure.

In a development monitored by the BusinessDay Newspaper, recent investigations revealed that the commodity still attracts varied prices, as different brands sell for N9,000, N10,500 and N12,000 per bag.

Also  a statement signed by Ngozi Okonjo-Iweala, the Coordinating Minister for the Economy and Minister of Finance, and published by the Nigeria Customs Service (NCS), on the breakdown of the new benchmark price of rice, shows that the importer is expected to pay USD$613 per ton for Free on Board (FOB) and USD$60 per ton for freight, totaling USD$673.

From this circular it was clear that  the decision was a comprehensive one  taken by the Inter-Ministerial Committee, that had membership from the following relevant bodies; Presidential Committee on Trade Malpractices, Federal Ministry of Agriculture, Nigerian Customs Service, Federal Ministry of Trade and Investment, Budget Office of the Federation and Federal Ministry of Finance, Rice Millers, Importers and Distributors Association of Nigeria.

Earlier this year the Minister of Agriculture Dr Akinwunmi Adesina  had stressed that the Federal Government will begin this year to take proactive steps to limit the volume of imported rice into the country, as a way of encouraging local rice production.

From the Circular, the Finance Minister Dr Ngozi Iweala said “The price is inclusive of freight charges and should be noted accordingly for implementation”, said the minister in the circular. She further enjoined the officers and men of the Customs to ensure strict compliance with the above benchmark in their appraisal, as well as valuation of all consignments of rice within the quarter”.

Nigerians ahead of the Yuletide season would have to brace up as the new directive could affect the end of year price regime of the commodity, as some sellers would  like to take the advantage to hike the price.

One Comment

  1. Oracle

    November 27, 2012 at 5:00 pm

    I am very sure that the proponents of this policy like Jose ph in Egypt have filled their silos with rice in view of the impending hike in the prices of rice in the countryRice is the next staple food of Nigeria after casava..