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How Import Waivers Are Crippling Local Rice Mills - Agriculture - Nairaland 626a4w

How Import Waivers Are Crippling Local Rice Mills (6015 Views)

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zero8zero(m): 12:57pm On May 08
Rice millers have raised concerns over the federal government’s import duty waiver on rice, maize and sorghum, saying it is hurting their businesses.

This is just as the Nigeria Customs Service (NCS) said the waiver has caused food prices to drop.

The government had, last year, approved a 150-day waiver for the importation of rice, maize, sorghum and other food commodities to mitigate the worsening food crisis.

The policy, which was to run from July 15 to December 31, 2024, was intended to waive import duties on essential food items such as maize, rice, wheat and cowpeas.

Millers say they are having a lot of trouble competing with imported goods in the open market due to other production factors.

Policy reduced prices of food items – Customs

Statistics from the NCS, which imposed the exclusions on imports of staple foods like sorghum, rice and maize, demonstrate the scope of the waiver.

The NCS’ Comptroller-General, Bashir Adewale Adeniyi, in a statement two weeks ago, said: “The Q1 2025 waivers on maize (N45.3 billion FOB value), rice (N751.6 million), and sorghum (N2.3 billion) also contributed to lowering prices by 12-18% this year.

“At the same time, the larger exemptions from 2024 on rice (N45.9 billion FOB) and wheat (N2.8 billion) are now showing their full effect after taking time to work through the supply chain.

“The NCS’s duty exemptions on food imports have contributed to recent food price reductions, with effects seen both immediately and over time.”

We’re being pushed out of business – Millers

Speaking to Daily Trust, the General Manager of Labana Rice Mill in Kebbi State, Malam Alhassan Yusuf, said the present istration felt “that the only way to bring down the price of food is to allow importation.

“They didn’t do this directly; they gave licences to two rice mills, Imota Rice Mills in Lagos and BUA Rice Mill in Kano, to import brown rice from India and process.

“There is a rice glut in India that resulted in the storage of rice for a very long period of time. The imported rice might have expired, and a lot of others might be chemically preserved to retain their form and nutrients. This is the rice they are now bringing into the country at a cheaper price. It is discouraging to the rice value chain from the farmers down to the workers, millers, trailer owners and drivers that are affected by the infiltration of rice that no one is sure of its quality,” he said.

Another local miller at Goru area of the state, Abubakar Idris, said he was forced to close down his rice mills when he could not continue to operate under the current situation.

“There was a drop in the price of rice and we cannot compete with the foreign rice that now circulates everywhere. We tried to remain in business, but we had to shut down when it was obvious that we could no longer operate under the present situation.

“It was an unfortunate decision because we had to lay our workers off and shut the factory. It is our hope that the federal government will go back to the drawing board and see how we can get out of the present situation.

“They should try and build on former President Muhammadu Buhari’s effort at encouraging the local industries to thrive. It was a good period for us, and they can still do that to ensure local rice mills survive and flourish,” he said.

Also, Alhaji Abubakar Bawa, a rice miller at Kamba area of Kebbi, told our correspondent that his rice mill had stopped operating.

“We can’t simply continue against these challenges in the industry. I suffered losses, we tried to continue operating, but we were overwhelmed by the everyday challenge.

“The Buhari period was a good time for us and others in the rice chain. But the current position of the government and the infiltration of foreign rice is killing the rice industry. We want government intervention because many rice mills have been shut and more will still be shut due to the challenges we are facing now,” he said.

‘They’re architect of their problems’

A merchant in Kano, Abdullahi Usman said while the rice millers have every reason to complain, they also have to share the blame of their misfortune.

“The truth is that the federal government during the Buhari istration pampered the rice millers. They were given loans, grants and all sorts of waivers.

“The intention was that they should reciprocate and bring down the price of rice, but they refused. They continue to make scandalous profit at the detriment of the poor. People could not afford to buy rice, a staple food.

“So, in its wisdom, the federal government granted waiver to importers so that the cost of rice will come down,” he said.

Daily Trust tried to no avail to get a reaction from the Federal Ministry of Agriculture.

The Director of Information in the ministry, Dr Joel Oruche, neither answered calls nor replied to a text message sent to him by one of our correspondents.

https://dailytrust.com/how-import-waivers-are-crippling-local-rice-mills/

7 Likes 1 Share

zero8zero(m): 1:08pm On May 08
You can imagine Nigerian newspapers and their headlines.. " how import waivers crippling local rice mills". These same newspapers are the ones running scary headlines when food prices were soaring.. " Hunger: Nigerians can no longer afford food items", Food Inflation: Foods prices are more than doubled, inflation at 40%". " Nigerian Children are now among the undernourished in the world"... bla bla bla.

When food prices coming down, traders lament. When fuel prices coming down, transporters and oil marketers lament. Who's the real enemies if not ourselves.

“The truth is that the federal government during the Buhari istration pampered the rice millers. They were given loans, grants and all sorts of waivers.

“The intention was that they should reciprocate and bring down the price of rice, but they refused. They continue to make scandalous profit at the detriment of the poor. People could not afford to buy rice, a staple food.

“So, in its wisdom, the federal government granted waiver to importers so that the cost of rice will come down,” he said.

End of story. Rice we no see, loan dem no pay back but were smiling to the bank, Nigerians were crying.

47 Likes 2 Shares

Is04970: 1:11pm On May 08
It all boils down to greed of the farmers / middlemen.
There should also be some efforts to regulate market/prices on the part of govt.

17 Likes 1 Share

Almunjid(m): 1:21pm On May 08
It would be better for import waivers to negatively impact local rice mills rather than allowing greedy rice farmers to exploit consumers. I cannot understand why Nigerians often display such callousness towards one another. If the government were to close the border, the price of rice would skyrocket, and farmers would be content to see consumers struggle. Conversely, if the government sought to relieve citizens of the high cost of food crops, farmers would express dissatisfaction. In this context, it seems more reasonable for farmers alone to face challenges rather than the entire country enduring the consequences of exorbitant rice prices.

Peace!

43 Likes 5 Shares

maxiuc(m): 1:21pm On May 08
grin

Local products always very expensive so what's the benefits of local production

25 Likes 2 Shares

Nicoddemus(m): 1:21pm On May 08
Rice farmers are one of the most wicked Nigerians.

Rice was cheap until Buhari closed border to give them room then they showed their true colour. They kept us where we are today

Now that the government is trying to offer a little help they're raising their ugly head again

36 Likes 2 Shares

AndroBlaze: 1:22pm On May 08
zero8zero:
You can imagine Nigerian newspapers and their headlines.. " how import waivers crippling local rice mills". These same newspapers are the ones running scary headlines when food prices were soaring.. " Hunger: Nigerians can no longer afford food items", Food Inflation: Foods prices are more than doubled, inflation at 40%". " Nigerian Children are now among the undernourished in the world"... bla bla bla.

When food prices coming down, traders lament. When fuel prices coming down, transporters and oil marketers lament. Who's the real enemies if not ourselves.



End of story. Rice we no see, loan dem no pay back but were smiling to the bank, Nigerians were crying.

Honestly one needs to wonder what kind of selfish people inhabit this country.

For almost 8 years Buhari's economic policies protected these people and ensured they had , only for them to also "ensure" they took the price of rice to a high of 100k.

Yes we know insecurity has affected them but what about all the farmers in the Southern part of the country? I am not talking about rice alone but all food prices that keep skyrocketing for locally available items. Or does Boko Haram and dollar also make local fresh fish more expensive?

This government needs to be serious and realise that food should not be used to make political points. If food is affordable, life will be bearable for the masses and inflation will also calm down a bit.

If farmers like, let them farm, whether they do or not, Nigerians must eat. That should be the government's priority, not stifling competition for the sake of a few set of people.

25 Likes 2 Shares

Quelme: 1:24pm On May 08
It should press their neck very well. Greedy bunch of local farmers

22 Likes

free2ryhme: 1:24pm On May 08
zero8zero:


https://dailytrust.com/how-import-waivers-are-crippling-local-rice-mills/




There is hunger in the land, how much does local rice Mills produce to meet growing consumption demand

1 Like

TimeManager(m): 1:25pm On May 08
The Government had announced the import waivers policy since last year, they were supposed to have prepared ahead and adjust their overhead costs. If you didn't fail the purpose of the Anchor borrowers program, Government would not have taken alternative route. Good a thing, some of your itted to your fault.


-Kiss the truth!

10 Likes 1 Share

MoneyMan5: 1:25pm On May 08
What's the use of the farmers when imported products are cheaper than what they produce here

10 Likes 1 Share

kingsleefolli(m): 1:25pm On May 08
We groups of people that milk profits from the pain of nigerian.they make money from pain of humanity.this world no balance

4 Likes

kingsleefolli(m): 1:26pm On May 08
We have groups of people that milk profits from the pain of nigerian.they make money from pain of humanity.this world no balance
(Modify) (Quote) (Report) (Share)

3 Likes

TallNigerian: 1:26pm On May 08
They should cripple and die off completely if possible. Good riddance!

How did they benefit the lives of common Nigerians when the import ban was in place?

They inflated the price of dirty looking local rice higher than even the good looking parboiled foreign rice.

Wicked people.

If they are not ready to compete, they can feck off.

There is a new Sheriff in town and he will not condone corruption under the guise of rice millers, Anchor borrowers or whatever you lots call your siphoning schemes.

You collected loans, didn't pay back, yet made life unbearable for Nigerians. Even the devil will marvel at this level of wickedness.

19 Likes

OYEDIPE(m): 1:26pm On May 08
zero8zero:
You can imagine Nigerian newspapers and their headlines.. " how import waivers crippling local rice mills". These same newspapers are the ones running scary headlines when food prices were soaring.. " Hunger: Nigerians can no longer afford food items", Food Inflation: Foods prices are more than doubled, inflation at 40%". " Nigerian Children are now among the undernourished in the world"... bla bla bla.

When food prices coming down, traders lament. When fuel prices coming down, transporters and oil marketers lament. Who's the real enemies if not ourselves.



End of story. Rice we no see, loan dem no pay back but were smiling to the bank, Nigerians were crying.
The Farmers are crying now. When they controlled the Space, Rice rose from 8.5k to 80k. Now you want the government to reverse so you can Smile to the banks again and put people in abject poverty.

13 Likes

lebienconnu: 1:26pm On May 08
The so-called local farmers can go to hell.

36 Likes 2 Shares

IamAtAnger: 1:27pm On May 08
I surprise as I see rice #59,500 for this same naija?.. so na we been dey do ourselves

5 Likes 1 Share

DrAda(f): 1:28pm On May 08
Tough luck. The survival of the nation is more important than your farms and pockets

7 Likes

stano2(m): 1:28pm On May 08
Okay na… na greed follow de carry this country back

1 Like

crestedaguiyi: 1:28pm On May 08
they are still importing rice

1 Like

DrAda(f): 1:29pm On May 08
OYEDIPE:

The Farmers are crying now. When they controlled the Space, Rice rose from 8.5k to 80k. Now you want the government to reverse so you can Smile to the banks again and put people in abject poverty.

This..

1 Like

adioolayi(m): 1:29pm On May 08
The rice millers should gerrout jare..

They can't feed us...and they don't want us to import...

Una wan kill us

35 Likes 1 Share

AmazingELixir: 1:30pm On May 08
lipsrsealed


It had better crashed it completely.....Nigerian farmers and middle men are the worst enemies of Nigerians.

7 Likes

SlavaUkraini: 1:30pm On May 08
Tinubu should not listen to these local rice millers...

Who local millers help ?

Jagaban should extend the waiver for 6 more years.

4 Likes

RealLordZeus(m): 1:30pm On May 08
They should kiss my lovely behind..
Greedy set of ppl

5 Likes

OYEDIPE(m): 1:30pm On May 08
Almunjid:
It would be better for import waivers to negatively impact local rice mills rather than allowing greedy farmers to exploit consumers. I cannot understand why Nigerians often display such callousness towards one another. If the government were to close the border, the price of rice would skyrocket, and farmers would be content to see consumers struggle. Conversely, if the government sought to relieve citizens of the high cost of living, farmers would express dissatisfaction. In this context, it seems more reasonable for farmers alone to face challenges rather than the entire country enduring the consequences of exorbitant rice prices.

Peace!
This is a very lovely Analysis.

3 Likes

id4sho(m): 1:31pm On May 08
Tinubu, import more abeg👌

I agree with Tinubu on this👌💯

5 Likes

id4sho(m): 1:32pm On May 08
Rice, Maize, Corn, Chicken is too expensive 😥 in this country ☹️

3 Likes

cr7lomo: 1:33pm On May 08
It's hurting their greed

3 Likes

id4sho(m): 1:34pm On May 08
It's crazy that yam was cheaper in Canada than Nigeria last year. Why will someone child buy a tuber for 4-5k last year. Tinubu, press their neck 📌💯🤷

4 Likes

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