Tag: rice

  • Sad, sorry tale of Otukpo rice mill

    Sad, sorry tale of Otukpo rice mill

    AMOS ABBA writes on the dilapidating state of Benue’s Otukpo rice mill; a once burgeoning enterprise now cast in despair and under productivity.    

    In the hot and humid sun of the Benue region, building number 2, located within the premises of the popular Otukpo rice mill looks undignified.  Wearing a rusted corrugated roof which bears the insignia of old age, its deserted parking lot reflects the sorry state of a rice mill created over 50 years ago for commercial purposes.

    The scanty flow of customers in and out of the building does not typify the flurry of activities that usually welcomes the peak of the harvest season when paddy rice was milled and processed at the mill in the past.

    Valentine Egwa was working on a faulty rice huller, a machine that removes husk from paddy rice when the reporter met him.  A graduate of psychology from the University of Jos, Egwa’s failed attempt to clinch a white – collar job compelled him to get involved in the production process of rice at the mill since 1997.  Ever since acquiring rice hullers some years ago, he has become an employer of labour at the mill. However, Egwa is quick to renounce the traditional practices involved in the trade.

    He said: “The problem affecting Otukpo rice mill is the crude methods used to process rice locally. This makes the rice not to be stone free, making customers prefer imported rice to locally processed ones”.

    Records of observation at the mill confirmed Egwa’s assertion. Many of the hullers used in processing the rice are aged and archaic, with many having been in existence as far back as 80 years ago. The poor facilities make it impossible for the mill to compete with marketers of foreign rice.

    Otukpo rice mill with its sketchy history is arguably the first commercial rice milling plant in West Africa, set- up and managed by the defunct Idoma technical trading company (I.T.T.C). Located in Otukpo local government area of Benue state, the mill was created to provide gainful employment opportunities to the Idoma- speaking people of the middle belt and Benue state in particular.

    At the time the mill was established, projections were set that Otukpo would be a commercial nerve center in the middle belt region of the country. The hope of the projection was hinged on the fact that the mill would attract traders from different parts of the country to Otukpo for the purchase of its locally processed rice. The rice mill once boasted of a staff strength of 3,000 people involved in the different stages of rice processing, working day and night, equipped with over 200 milling engines spanning over 20 hectares of land.

    It was the largest employer of labour in its heyday in Otukpo and served as a veritable source of livelihood to many people. But those were the past glories; adversity weighed in on Otukpo rice mill in the late nineties.

    Undermined by decrepit infrastructure, under-utilized labour force and under-performance; major customers from different states across the country no longer patronized the mill. The long distance involved in transportation of the rice products also contributes in no small measure to the dwindling fortunes of the mill.

    Rice huller at Otukpo rice mill processing rice.
    Rice huller at Otukpo rice mill processing rice.

    There is evidence to suggest that the now decrepit mill used to be a booming enterprise providing jobs for young people and women.

    Samuel Ochigbo, a resident in the area reminisced about the mill when it was still booming.

    “The rice mill provided jobs for people in the area. They were those selling fire wood to the millers and those providing water for pay. Everyone, both young and old had something to do. The rice chaff usually gathered was very high from the ground. It was a sight to behold until things began to decline steadily.”

    With the federal government’s position on banning the importation of foreign rice; there appears to be prospects for local millers in the country as government’s expenditure would be channeled to utilizing the production capacity of the various rice millers across the country.

    However, some rice farmers are not optimistic as there appears to be virtually no plan to strengthen and boost local production.

    “You cannot ban importation of rice by legislation and expect everything to be fine. If certain steps are not taken to position the local millers to bridge the demand-supply gap of local production of rice, then consumers will face the horror of skyrocket prices of local rice if there is a total ban,” Valentine Egwa pointed out.

    Millers in Otukpo rice mill face serious hurdles in meeting the basic requirements of local rice production because certain critical variables are not available. The mill does not generate its own power so when public power supply is interrupted, commercial activities in the mill grinds to a halt. Workers in the mill rely on water tankers sourced from neighbouring suburbs of Otukpo town like Otobi and Ochobo. The water does not come cheap; it is sold at exorbitant rates especially during the dry season.

    James Iduh, a trader at the mill also highlighted some of the problems faced by workers. He urged government to provide more transformers to ensure access to electricity at full voltage as well as provide pipe borne water to help reduce the cost of the production of rice.

    Furthering, he said:  “We have been introduced to several co-operative societies to secure loans to improve our business but nothing is forthcoming. If government can assist us, it will go a long way in restoring the mill back to life.”

     

    Rice workers at risk  

    A worker at Otukpo rice mill washing paddy rice.
    A worker at Otukpo rice mill washing paddy rice.

    The physical demanding nature of the activities involved in the production of locally processed rice has affected workers productivity and exposed them to serious health risks.

     

    Emmanuel Obute, a final year student of the University of Agriculture, Makurdi whose palms have turned coarse as a result of exposure to the fire involved in the process of cooking rice in the mill called on the government to come to their aid, saying there should be an endowment fund to cater for those injured in the course of working on the mill plant.

     

    Also, other young people involved in the temporary casual works in the mill to aid their immediate financial needs see their job not only as underpaying but disdainful.

    David Baba, who had worked intermittently for six years at the mill on a part-time basis while as a student disclosed that it is difficult to return to  the  mill to work, considering its present state at a
    time when locally processed rice is no longer patronized.

     

    “Government should provide modern rice milling engines that separate the rice from stones at subsidized rates to Otukpo rice millers to keep them gainfully employed. This will make young people interested in the business”, he submitted.

  • Dangote boosts rice production with outgrowers’ scheme

    Dangote boosts rice production with outgrowers’ scheme

    Commodities giant Dangote Group has unveiled a massive rice production scheme. The Dangote Rice Outgrowers’ Scheme has been unveiled  in Hadejia, Kafin-Hausa Local Government Area of Jigawa State.

    About 5, 000 farmers are expected to participate in the scheme, which kicked off with the distribution of treated rice seedlings for planting.

    Dangote Group President Aliko Dangote said the programme, which began with 20, 000 hectares of rice cultivation, would be expanded to cover 800,000 hectares over the next three years. He said there was no better time than now to turn to agriculture to save the economy.

    Oil prices have crashed, throwning Nigeria’s earnings off balance.

    “We are committed to the development of outgrower scheme by providing local, value added products and services that meet the basic needs of the populace,” Dangote said.

    The Dangote Rice Farm Ltd, will run an initial pilot in Hago-Fadama, Kafin Hausa and Auyo areas, which will see Dangote Rice developing small holder farmers by providing quality inputs (certified seeds, fertilisers, agro-chemicals and petrol), improved agricultural practices and technology to increase yield and produce quality rice paddy, which will  be bought  from them by the company.

    The Nation learnt that the outgrowers’ programme in Jigawa State would create over 10, 000 direct and indirect jobs for the host communities. Over the period, aside the outgrowers aspect of the investment, Dangote Rice plans to plant 150,000 hectares of long grain white rice and produce nearly one million tonnes of high quality par boiled white rice for sale into the Nigerian market.

    It was also learnt that Dangote Rice Farm Ltd has a deliberate policy in place to procure 30 per cent of its rice production from local farmers who will be developed into outgrower groups. According to Dangote, these outgrowers will be simultaneously developed alongside the company’s commercial farming operations.

    On why he forayed into rice farming, Dangote said: “Before the discovery of oil, our economy was built around potentials from our palm oil, groundnut, cotton, and rubber plantations. Now the price of oil has plummeted from a peak of $116 per barrel in June 2014 to as low as $29 per barrel in January 2016, this means there is huge loss of revenue to the government.”

    He expressed regrets that the nation’s agricultural commodities and food imports bills averaged over N1 trillion in the past two years of 2013 and 2014, with foods like sugar, wheat, rice, fish accounting for 93 per cent of the total cost of imports. He described the situation as unacceptable.

    While further justifying his investment in rice cultivation, Dangote pointed out that the situation the country has found itself needs a reversal. According to him, Nigeria spends nearly $1.8b per annum importing approximately 3.2 million MT of rice to feed its population. These, he said, are foreign exchange that could be used on more impactful social development interventions if they were not needed for food imports.

    Currently, average rice yield in the country is between 1.8 and 2.5 metric tonnes per hectare (MT/ha), depending on the region and the crop (wet or dry) and with or without irrigation. The 1.8 MT/ha is significantly lower than the best practice yields in Africa of 9.2 MT/ha generated in Egypt.

    Locally produced rice is more expensive than imported rice due to the high cost of production relative to the low yields in the country because of poor agronomic practices. In addition, the government of Nigeria has implemented policy incentives that encourage investment in domestic rice production and milling.

    Dangote, however, regretted that huge amounts were expended on food items that the country has potential to produce locally with attendant losses of employment and wealth creation opportunities. “Yet the allocation of foreign exchange to import these items continually deplete the foreign reserves,” he stated, adding that the outgrowers’ scheme has been designed as a one stop solution for the rice value chain.

    During the rice seedling distribution, Minister of State for Agriculture, Senator Heneiken Lokpobiri, lauded the initiative of Alhaji Dangote, saying his intervention in the government’s efforts at providing food security for the citizenry, creating jobs and reducing dependency on food importation is appreciated.

    According to him, a whooping sum of $20 billion is spent on importation of food items that could be produced locally, a situation he said Dangote rice investments would help reduce

    While expressing the government readiness to provide all the needed support to make the scheme a success, the minister said government is putting in place a strategy that will make farmers have greater access to farm implements to help them produce with ease.

    The Special Adviser to Alhaji Dangote on Rice and Coordinator of the outgrowers’ scheme, Mr. Lulu Carlos, explained that 6.1million metric tonnes (mmt) of rice is consumed annually, but not more than 2.6 million metric tonnes are produced locally, leaving the rest to importation.

    Lulu said: “We are happy to start today the partnership with the first outgrowers’ bloc of 200 hectares, shared among eight communities. I have seen the same project grow in my country, Brazil, whereby from 2.5 Mt tons in the beginning to today we reached 9 tons of paddy rice per hectare in productivity’’.

    Jigawa State Governor Alhaji Badaru Muhammed Abubakar thanked the Dangote Rice Limited for choosing Jigawa as the pilot state for the project. He pledged the readiness of his administration to provide all necessary support to the project. He said the project was in line with his government’s commitment to improve agriculture and industrialise the state for job creation and poverty eradication.

    The governor assured Dangote Group of the state government’s support in making any policy and intervention that will make the investment profitable and generate jobs for the teeming population of the state.

  • Customs impound 1, 035 bags of smuggled rice

    Customs impound 1, 035 bags of smuggled rice

    The Nigeria Customs Service, Ogun State Area Command, has impounded about 1,035 bags of smuggled rice from smugglers.

    The bags of rice were intercepted penultimate Sunday at Idogo Community near Ilaro in Yewa South Local Government Area of the state, while 10 vehicles used in smuggling them were also impounded.

    About seven truck-loads of unprocessed wood, allegedly being exported illegally out of the country were also seized penultimate Friday from smugglers from Republic of Benin.

    The unprocessed wood was seized from smugglers at Ijoun community in Yewa North Local Government Area of Ogun State while being taken to Republic of Benin, according to the new Area Controller of Ogun State Area Command, Mr. Multafu Waindo.

    The vehicles used by the smugglers have Republic of Benin’s number plates and have been moved to the Abeokuta headquarters of the Ogun State Customs Command. Controller Waindo said the seizures marked the beginning of tough times for smugglers in the state.

    He said: “On February 5, 2016, our operatives arrested six trailers with number plates: AU3121RB, BA9064RB, AY7203RB, AV4002RB, BA7930RB and a truck with number plate AX3245RB, transporting unprocessed wood.

    “Unprocessed woods are prohibited from being exported out of the country. Only processed ones are allowed to be exported out of the country, and they must have been cut to small sizes. Five persons who were foreign nationals were arrested in connection with the act. They did not understand English; they only spoke French. They are currently being detained while preliminary investigations are ongoing.

    “In another development, on February 7, 2016, while acting on a tip-off, our operatives stormed the Idoko area and arrested 10 vehicles loaded with 1,035 bags of smuggled rice. The vehicles and the bags of smuggled rice were immediately taken to a government warehouse.

    “Despite the fact that some of the fleeing smugglers removed the batteries, tyres and steering wheels from the vehicles, we towed them down to Abeokuta.”

    The Ogun customs boss disclosed that the command had made about 55 seizures including 25 fairly-used vehicles, 1,161 cartons of frozen poultry products, second-hand tyres, cannabis sativa, and other items. He said: “The command has held meetings with stakeholders on the need to shun smuggling. Some have turned a new leaf while others turned deaf ears. I want to tell smugglers to follow the due process by paying the necessary duties on their goods. We are determined more than ever before to stop all illegalities in Ogun State.”

  • Scores injured in Ebonyi rice millers clash

    Scores injured in Ebonyi rice millers clash

    The leadership tussle rocking the Abakaliki Rice Milling Company got messier at the weekend as rival factions clashed in Ebonyi, the state capital.

    Factional Chairman  Chukwuemeka Nwankashi got machete cuts on his head and has since been hospitalised, following parallel elections, which produced factional executives.

    It was gathered that a faction supported by the government held its election at the Abakaliki Township Stadium and former chairman Joseph Ununu was re-elected.

    The second faction held its election at the mill’s hall and Nwankashi was elected as its chairman.

    Speaking to The Nation, Nwankashi accused Ununu of causing the fracas. He alleged that Ununu’s faction, armed with weapons, and on Ununu’s orders, attacked him and his supporters as they celebrated his victory.

    His words: “We planned to have our elections but government interfered with it. This is contrary to our constitution because only registered members are allowed to vote during elections.

    “We begged to be allowed to hold the election at our hall but the government insisted it must hold at the stadium, and we agreed. But when we got to the stadium at 8am, we discovered they had brought in hoodlums to take over the place. We told them those people were not our authentic members but they did not listen, so we left.

    “The authentic members then went to the mill and held our election but before that, we stopped at the Government House to intimate them of happenings. I won the election with 158 votes, as I was unopposed. Other officers were also elected: Elias Nwogwu (treasurer), Chijioke Ilodiba (vice chairman) and Emeka Agu Ozo (financial secretary).

    “We were celebrating the victory when the former chairman, Joseph Ununu a.k.a Zuma, came with armed thugs and attacked us. I sustained injuries on my head and face. Many others were also injured and if not for the intervention of the police, we would have been killed.

    “Ununu even boasted that he had government’s backing to eliminate anyone opposing him.”

    Nwankashi called on the government to intervene, adding that “even if they want a particular candidate, they should tell us. We only want the proper thing to be done”.

    But Ununu denied ordering the attack. He maintained that he was duly elected.

    The government, through the Commissioner for Agriculture and Natural resources, Uchenna Orji, has said the state will only recognise the election which produced Ununu.

    According to him, the government had done all it could to ensure peace but its efforts were frustrated by selfish individuals.

    “The government, therefore, constituted a committee, headed by myself, with other commissioners as members, and we fixed February 12 for the election, to hold at the Abakaliki Township stadium, which all the aspirants accepted.

    “All 13 aspirants were screened and at the end, we adopted the option A4 system, with the delegates raising their hands to be counted.

    “Ununu emerged as chairman and there was nothing like a parallel election, because the one which produced him was conducted in the presence of security officials and accredited election observers.

    “The purported parallel election was conducted by cartels who are produce merchants; they connive with rice vendors to brand the rice as belonging to other states.

    “Their acts give the false impression that Ebonyi rice is produced by other states, but we urge the rice millers and the public to conduct their businesses without fear of molestation,” Orji said.

  • GEMS4 partners firm to boost rice production

    GEMS4 partners firm to boost rice production

    Growth and Employment in States – Wholesale and Retail Trade (GEMS4), a United Kingdom-sponsored programme, has signed a memorandum of understanding (MoU) with Popular Rice Mill to increase the production of local rice.

    The target, according to the Deputy Team leader, GEMS4, Mr Olatunde Oderinde, is to produce 50,000 metric tonnes of local rice as well as create livelihoods for 25,000 farmers.

    He said the programme was determined to promote improved rice production system, combined with training and the adoption of innovative approach along the rice value chain that shortens processing time, reduces drudgery, and does not expose  farmers to heat burns.

    According to him, unless rice farmers use improved rice processing technologies that produce marketable products, consumer demand will not be satisfied by locally-produced rice.

    Besides, he said the quality of local rice has to be similar to that of imported rice.

    To achieve this, he said the programme was empowering farmers to improve the quality and competitiveness of locally-produced rice; and  that rice production processes require upgrading by actors in the value chain.

    GEMS4 Senior Intervention Manager Busuyi Okeowo said the programme was introducing measures to enhance the effectiveness and sustainability of  rice production by improving the value contributions among the various actors involved in the rice chain: farmers, millers, input dealers, traders, microfinance agencies and extension services.

    He encouraged farmers and entrepreneurs to participate in the rice value chain and promote the sale and consumption of locally produced rice.

    He said the project was focusing on training in value addition, marketing arrangements, quality packaging/labeling and leadership.

    Okeowo added that GEMS4 has a micro retailing initiative segment aimed at providing access to markets intervention and increasing incomes and employment for retailers.

    The initiative, according to him, works with organisations to create buyer groups, who aggregate purchasing power to order stock collectively, thus negotiating lower wholesale prices from suppliers of fast moving consumer goods. This results to an increase in the sales margins for many micro-retailers who previously, could not access such markets due to economies of scale and scope.

    According to him, urban consumers seldom buy local rice because in comparison to Indian or Thai rice, Nigerian rice is perceived to be a low quality product.

    Under its access to markets initiative, he said the organisation is working to increase brand awareness for local rice through promotion of branding and marketing of high quality locally milled rice.

    The programme, he added, has provided the opportunity to raise the profile and create demand for locally grown rice through improved packaging solutions. By improving product packaging sizes, distribution and marketing of rice in pilot states, Okeowo said it will create jobs and result in increased incomes for local farmers.

    He added that the programme is pursuing a linking rice farmers to commercial mills initiative to facilitate the channelling of locally-grown rice paddy to large commercial mills to enable farmers earn more for their paddy and to help commercial rice mills diversify from importing foreign brown rice at premium rates.

    The General Manager,Agric Business, Popular Farms and Mills Limited, Mr Amit Kumar, said the organisation was determined to support efforts to  help  sustain small scale rice farms.

    Group Executive Director, Stallion Group, Tokunbo Aromolaran said most farm families are smallholder farmers and they undeniably contribute a lot to household, national food security.

  • Can Nigeria be self-sufficient in rice production by 2019?

    Can Nigeria be self-sufficient in rice production by 2019?

    To many stakeholders, plans by the current administration to make the country self-sufficient in rice production by 2019 though ambitious but doable given the right political will, reports Ibrahim Apekhade Yusuf

    Rice, yes good old rice is one staple food you can’t miss in any home. The reason of course, is not far to seek.

    With an approximate annual demand of between 5 to 6.4 million metric tons a year, Nigeria ranks among the top 12 rice consuming countries in the world.

    However, much of this consumption capacity is largely catered to by the importation of rice from other rice-producing countries. Nigeria is currently the second largest importer of rice in the world, and the largest net importer in Africa.

    Nigeria spends an estimated N356 billion on importation of rice annually, the bulk of which comes from Thailand. Importers are now turning to India for supplies following the recent reentry of that country into the non-basmati rice trade.

    But what if any, is responsible for the nation’s overdependence on import?

    Olufemi Amoo, an agric economics offers a plausible explanation.

    “The major reason the country is not yet sufficient in rice production is simply because the poor local production is not commensurate with the high consumption pattern,” he said.

    Expatiating, he said: “For example, Dangote Industries, the largest rice producer in Nigeria, has a landholding of 100,000 hectares, which barely scrapes the tip of the iceberg of Nigeria’s rice needs – even if it is assumed that 9 tons of rice is produced by each hectare of land annually. This means that, although there is a clear deficiency in Nigeria’s rice-production regime, an opportunity in this problem can also be found.”

    Past experience

    Under the Agricultural Transformation Agenda (ATA) of the previous administration, tremendous achievement in rice production went beyond what could be wished away as millions of additional metric tons of food were added to local supplies and with rice experiencing a significant increase.

    Although the Federal Government also increased the levy paid on imported rice ostensibly to curb importations with a view to outright ban in a few years, no effort was being made to encourage or develop local production just as the rice development fund was not being deployed anywhere.

    But despite the positive effects of the backward integration policy, following the exit of Adesina as minister of the agric sector, the bureaucrats that took over from him drafted a new allocation that excluded rice producers, and only favoured rice millers. A situation, millers considered antithetical to their existence and which they reckoned could lead to a further decline in Nigeria’s domestic rice production capacity.

     

    Buhari’s strategic plan for rice production

    The present administration under President Muhammadu Buhari has declared that the nation’s quest for self-sufficiency in rice production will soon be realised going by the by the standard and quality of rice locally produced as well as level of commitment and vision demonstrated by local rice farmers and millers.

    Thankfully, the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, has said Nigeria will be self-sufficient in rice production in three years if all hands are on deck.

    The minister, who assured that the Federal Government was committed to ending the importation of rice and other agricultural products

    “This can be made possible only if Nigerians must recognise that agriculture is no longer a seasonal but an all-year-round activity which must involve every Nigerian, both during the rainy and dry seasons.”

    The minister lamented the fact that Nigeria was importing everything and denying employment to the over 100 million youth population.

    “We are importing palm oil, groundnut oil, fish, and smuggling chicken poisoned with formaldehyde, among several others. Nigeria directly or indirectly has empowered foreign economies to take Nigeria hostage; and trying to free ourselves now is a tug of war,” he said. “Help us tell Nigerians that the time has come for all of us to get involved.”

    Ogbeh expressed delight at the collapse of oil, saying it would allow Nigeria to focus on sustainable development.

    Ogbeh said, “So we are going to go through some tough times, but the truth is we must learn to produce or perish; there is no half way out. We can’t keep shifting things around. Where are the jobs? Almost 100 million Nigerians are below 50; it’s a young society and when some of us talk about it, they say we are old and won’t be around, but on the other hand I have grandchildren and when I am gone, there will be pieces of me left and I do not want my country to perish because after I have lived my life and died, I want it to be better.”

    Chief Ogbeh assured that there were to be no policy somersaults in the present government as they were committed to continuing with the E-Wallet /GES scheme, though he lamented the challenges of continuing fertilizer distribution as a result of failure of the states to meet up with the 25 per cent counterpart funding.

     

    Private initiative to the rescue

    One of the local companies that is giving hope to the government’s determined realisation of the self sufficiency in rice is Pearl Universal Impex Limited, a major importer of rice in the country that has now invested in local rice production and milling in Niger state.

    The chairman of the company, Pulkit Jain, disclosed that the company has been a major importer of rice in the country with imports of 350,000 metric tonnes of rice annually in the past, but chose to invest in cultivation and milling of scientifically tested, high yielding varieties of rice in order to achieve the Federal Government’s target of achieving self-sufficiency in rice production.

    He said to underline their commitment that the company in June this year started a pilot scheme to determine the variety of rice most suitable to the region at a 500 hectares of land in Saminaka, a community situated around Swashi Dam in Borgu local council.

    The Pearl Universal Impex’s model, he explained , combines a commercial farm with a programme that works with nearby farmers,  called out-growers, allowing the company greater control over its product while still leaving room to foster and train local small-scale farmers in rice production.

    To this end, Jain revealed that $100million (N200bn) will be committed to the cultivation of 7,500 hectares of rice farm and construction of two rice mills in the state in the next three years.

    He said the move was predicated on the successful rice yield of seven metric tonnes per hectare at the trial phase of the project, adding that the company will now move to another 2000 hectares of land for cultivation this December.

    Jain added that the firm’s focus will be primarily on dry season farming as it was easier to manage, even as the company intends to grow rice three times a year on the land.

    While pointing out that the equipment for the next phase of the project had already been shipped and would berth in the shores of Nigeria any time in January 2016, Jain explained that the company has not spared any effort in training the local farmers on the scientific method of cultivating rice in order to get a better yield, adding that at the moment, there were 100 workers in the company’s employ that have been well trained.

    Speaking during a visit to the new Emir of Borgu, Mohammed Sanni, the company’s boss commended the new Emir for the harmonious relationship between the company and community. Jain informed the monarch that the local farmers using their leased land for farming purposes had never been forcefully ejected from the place, but that it was a deliberate policy of the company to employ and train them instead of out rightly asking them to give up the land whenever there was the need for the company to use more land for cultivation.

    Jain said the company has challenges in the areas of access road to its farm and also the near- absence of network services for effective communication and the technical know-how of the community.

    He therefore called on the government to intervene adding that a support from government in terms access to loans from banks like the Bank of Agriculture and the Bank of Industry (BoI) would greatly help to speed up development in the area.

    Reacting, the new Emir of Borgu, Mohammed Sanni, urged the government to support rice farmers and millers in order to realise the value chain on the commodity, while commending the PJS for the project in his domain.

    “Many firms came here and indicated interest in thought commitment. This PJS came and indicated stronger commitment and went into action immediately. We want the Government to support firms like PJS that goes out of their way to invest in agricultural backward integration policy. This place is very remote/far from the city which is more than six hours drive from Minna and PJS is ready to do business here,” the Emir noted with delight.

    Alhaji Mohammed noted with joy that the villagers have benefited immensely from capacity building of the firm in term of knowledge, High tech in advanced rice farming and handling High tech machines.

    “We will support the company to consolidate in growth. They will not regret coming this way.”

    Like Pearl Universal Impex Limited, Rotimi Williams of Kereksuk Rice Farm, the second largest rice production company in country is also doing his bit to ensure that becomes more self-dependent in rice its domestic production capacity.

    While commenting on what he described as the recent ‘rice revolution’ led by Nigeria’s former Minister for Agriculture and President of the African Development Bank, Dr. Akinwunmi Adesina, Williams said  the initiative allowed stakeholders in the farming process, from the rice producers to the millers, to benefit from the 2014/2015 rice allocation.

    He is also convinced that the decision by the Central Bank of Nigeria to plug many of the leakages and loopholes that lead to decreased revenues in the country, especially ban of rice importers from accessing forex is indeed heartwarming.

    This situation, according to Williams, is meant to encourage more investment and participation in the domestic production sector. Nevertheless, although such policies are helpful, Williams states that a more thorough understanding of the rice market would help Nigeria yield more in that sector.

    “The issues of insufficient rice production in Nigeria cannot simply be narrowed down to rice importation,” Williams said. “But a failure to fully understand the rice value chain and address the issues that affect the value chain.”

    He also holds the view and very strongly too that opportunities exists for Nigeria to take charge of its rice consumption capacity, reveals that if the CBN is willing to address the entire funding of the entire rice value chain, and not just ban the importation of rice, long-term sustainable systems can be formed that will contribute to Nigeria’s rice market and the economy in general.

  • Tackling poor rice yields

    Tackling poor rice yields

    Lack of quality rice planting materials is responsible for poor yields. Stakeholders are canvassing supply of high quality crop planting materials to small-scale farmers for maximum yields, DANIEL ESSIET reports.

    For a rice farmer in Lagos State, Abdul Ghaniyu Alabi Ojolowo, accessibility to high quality rice is the key to achieving better food security and escaping poverty.

    This, however, depends on several factors, including good seeds. For most of the farmers, birds eat some of the crops, leading to losses sometimes. Others lack proper drying facilities, which force them to dry the rice on bare ground, which contaminate it with stones. This lowers the quality of the rice.

    The cost of pesticides they use to spray the rice to control diseases, such as wilt is expensive. The other reason farmers are not making headway in yields is that they don’t have access to high yielding varieties for planting.

    A trained accountant, Ojolowo, who went into rice farming after quitting his job with a private firm, maintained that although the business is well-paying; there are a number of challenges. When he decided to take on the venture, he got some basic lessons in rice growing and relied on the advice of elders in the business. Later on, he got in touch with Lagos State Rice for Job project and was exposed to modern rice cultivation practices.

    As far as rice is concerned, Ojolowo noted that no one could expect domestically grown rice to be competitive. He has confirmed this from his experience. A certain portion of the population prefers imported rice than buying domestically grown rice.

    But for the Deputy Managing Director, Kewalram Chanrai Group and Director, Spring Field Agro Limited, Mr Victor Eburajolo, farmers can only boost their livelihoods by exploiting agronomical practices that improve their yields using improved seeds, pesticides and fungicides. He believes rice production can pull a lot of Nigerians out of hunger because 60 per cent of the nation’s arable land is good for farming.

    While local production has been on the decline, Eburajolo wouldn’t want rice importation to continue under any guise and so canvasses national efforts to equip and empower local farmers.

    To this end, he is in support of the government boosting local rice production and reducing imports of the commodity.

    This attitude, he noted, is motivating the private sector to embark on aggressive and sustained interventions to make Nigeria a food basket, thereby reducing rice importation. For him, governments and private investors’ partnership should enrich rice farmers to deliver good produce.

    However, Eburajolo contended that farmers can only boost their yields by planting high-quality hybrid seeds, and using the recommended amount of fertiliser.

    Currently, the average rice yield nationwide stands at about three tonnes per hectare, which is far lower than the international average of six tonnes per hectare. This is attributed to low hybrid seed uptake amongst the smallholder farmers.

    Part of the blame goes to poor access to quality certified hybrid seed by small-holder farmers. To bridge this gap, Eburajolo said his organisation is partnering with RiceCo, a subsidiary of United Phosphorus Limited of the United States to produce rice dedicated fertiliser and rice hybrid seed as a way of boosting food productivity in the country.

    He said RiceCo was founded to meet the specific technology needs of rice farmers, stating that his company is encouraged to go into rice production by the government’s pledge to create an enabling environment  for agriculture to be transformed into a viable business.

    International Operations Director, RiceCo, Pinky Ghosh, expressed concern that farmers are not making enough money from rice cultivation. This is as a result of not using quality seeds and farm inputs.

    As part of the benefits of the partnership, Ghosh said her organisation will work with Spring Field Agro Limited to enable smallholder farmers’plant hybrid rice seeds and good management practices to boost yields per hectare. According to her, an improved quality of rice is the key to bigger farm incomes and taking the crop to new and more profitable markets.

    For years now, she said her organisation has been producing hybrid rice seed and dedicated fertilisers for use by local communities.

    Experience, she added, has shown that a little capacity building can change the situation within a very short period.

    In addition, she said farmers  need advice on modern farm technologies that will help to expand the production cycle and increase their rice production and profit.

    She said improving on milling is the way forward for the industry. More efficient mills, she noted, will trigger higher productivity and usher in quality improvements at the farm level.

    Ghosh said her organisation has done a lot combining field experience, scientific research and innovative thinking to solve the most challenging crop protection problems domestically and around the world. From small rice mill with traditional rice production machine to state-of-the-art rice production machines and modern rice reprocessing system, she reiterated that her organisation is determined to transform rice production to reduce importation.

    According to her, the organisation’s innovative portfolio of products helps produce cleaner fields, healthier crops and more abundant yields. With more than 330 million acres of rice grown around the world, she said the company is dedicated to helping growers satisfy the growing demand for the world’s most essential food. While accelerating food production has brought more farmland into play, this however without a matching increase in crop yields.

    The Head Africa, United Phosphorus Limited, Mr Nishant Pahuja said his organisation is using seeds as conduit for moving new varieties, giving farmers access to more productive, yield-enhancing traits.

    Pahuja said his organisation uses rice seeds to boost nutrition, with bio-fortified varieties that elevate micro-nutrient levels.

    Typically, he observed that the severe droughts have decimated crop yields. Since climate change-induced droughts have also had a major impact on food production, Pahuja added that his company has produce drought resistant species that can survive for a long time without water. Director of International Regulatory Affairs, RiceCo, Martin Poveda said the organisation is committed to making an impact on the world shortage of food by improving the quality and quantity of rice and help make it available when and where food is needed. He said the company develops, markets, and supplies rice-specific herbicides to maximise grain production and operational efficiencies. RiceCo, headquartered in Memphis, Tennessee,United States, is a wholly owned subsidiary of United Phosphorus Limited (UPL).

    UPL is a global crop protection, chemicals and seeds company, headquartered in Mumbai, India. UPL and its companies have a combined market capitalisation of approximately $2.5 billion. This provides RiceCo with a wide variety of resources to continue our goal of being the premier provider of products and services to the rice industry. So far, the Nigeria has released more than $1 billion to boost local rice production and to reduce imports of the commodity. The money, to be spent through the Presidential Rice Initiative, is to be availed to rice farmers at a single-digit interest rate of nine per cent per annum.

    Some of the money will go to building 200 artificial seed multiplication centres for production of rice seeds.

    Under the Presidential Rice Initiative, the money is meant to strengthen the capacity of banks in agricultural lending to farmers and entrepreneurs in the value chain as well as reduce rice importation.

    The Minister of Agriculture, Chief Audu Ogbeh, said in Abuja that large-scale rice farmers would empowered to ensure the successful implementation of the Presidential Rice Initiative. Nigeria, which is Africa’s largest rice producer, plans to raise production to 300,000 metric tonnes a year. This will reduce its imports by 15 per cent and cut costs by $342 million a year. Estimates are that the demand will be 35 million tonnes by 2050.

    Meanwhile, several ministers of agriculture from Africa will meet in Kampala early next month to discuss rice research and development, production and policy.

    The meeting, known as “the 30th Extra-Ordinary Session of the AfricaRice Council of Ministers”, will appoint a new Director General for AfricaRice Centre.

    The meeting will be held  from February 6-8 and more than 50 dignitaries are expected to attend. Of these, 25 will be ministers of Agriculture or their representatives.

    “Africa consumes a total of 11.6 million tonnes of milled rice per year, of which 3.3 million tonnes are imported. As many as 21 of the 39 rice-producing countries in Africa import between 50 and 99 per cent of their rice requirements,” states the International Rice Commission (IRC).

    In a related development, a group of Thai Investors have disclosed plans to build $4 million rice city in Calabar.

    Managing Director, Thai-African Corporation Limited, Mrs. Pantipa Dhanagon said the rice city will be completed in six months. Mrs. Pantipa Dhanagom, said the scheme will be a rice seedling center with the best rice seeds to be grown in the area.

    According to her, the project will provide a training center and a one-stop service for out-growers in Nigeria and other African countries.

  • Rice import gives Customs N1b in two months

    Rice import gives Customs N1b in two months

    The suspension of restrictions on the importation of rice through the land borders by the Comptroller-General, Nigeria Customs Service (NCS), Col. Hameed Ali (rtd), has paid off.

    The service has raked in N1.178 billion from the 17,596 metric tonnes of the item imported through the borders between October and November, this year.

    Speaking at a strategy session convened by the Service to review revenue performance so far, Ali said out of the N1.2 billion generated by the Service between October and November, N1,178,720,376 was generated from rice.

    Ali approved the suspension of restrictions on land importation of rice on assumption of duty in September, saying the decision was to checkmate the large amount of rice being smuggled through the land borders and the loss of huge revenue that should have acrued to the Federal Government.

    “The huge collection in just two months has vindicated our position. If we had stuck to our previous directive, these much quantum of rice would still have been smuggled and we would have lost over N1 billion revenue at this critical period of our economic down-town,” he said.

    The breakdown of the revenue showed that Idiroko border in Ogun State Command, had the largest volume of 8.276 metric tonnes, with a collection of N555.152 million duty while Katsina border has 3,636 metric tonnes resulting in N242.1 million revenue during the period.

    The Customs boss added that 2.156 metric tonnes of rice was also imported through the land borders of Oyo and Osun commands, generating revenue of N144,278,025. At Seme, Sokoto, Kano, Jigawa, Adamawa and Taraba commands, the service said it generated N143,349,658; N40,162,759; N31,536,148; N16,545,422; N4,710,394 from 2,140,602,248 and 68 metric tonnes.

     

  • Senate seeks suspension of rice importation through land borders

    The Senate yesterday asked the Federal Government to suspend the lifting of the ban on importation of rice through the land borders.

    The Nigerian Customs Service (NCS) lifted the ban about two months ago to check rice smuggling.

    The senate’s action followed the adoption of the report of its ad-hoc committee on import duty waivers, concessions and grants.

    The committee said lifting the ban would lead to evasion of customs duty and maritime revenue losses.

    It also said lifting the ban would lead to increased diversion of vessels to neighbouring countries.

    The lower five per cent import levy on rice by some neighbouring countries the panel noted, is enough inducement, warning:  “If not checked, (it)  will on the long run lead to massive vessels desertion of Nigerian ports and the concomitant unemployment of Nigerians.”

    In lifting the ban, NCS said it would bring more revenue to public coffers, reduce  smuggling and the commodity’s price by breaking the monopoly of rice millers who have the capacity to import large consignment.

    On October 15 the senate debated a motion on the dangers posed by the removal of rice from the import restriction list and the re-introduction of import duty payment at land borders. It asked its ad-committee to invite customs Comptroller-General, Col Hameed Ali (rtd) to brief it on the reasons behind the new policy.

    The ad-committee headed by Senator Adamu Aliero noted that between 2010 and 2012, there were inconsistencies in rice imports fiscal policies.

    The policies, the committee noted, ‘led to frequent changes in levy payable on rice’ with conflicting opinions of the classification of Husked brown rice.

    It noted that because of this policies somersault the Customs, recommended the restriction of rice imports to the sea ports to monitor the commodity’s importation.

    The committee said because of this somersault, some importers exceeded their quota allocation, resulting in an outstanding duty of over N24 billion and subsequent suspension of the 2015 rice import quotas.

    It observed that the introduction of the 2014-2017 National Rice Policy has brought about stability in the tariff regime.

    The committee said though the NCS claimed to  be well equipped to monitor the land borders “the Customs Service failed to convince the committee of its ability to actually monitor the porous borders.

    “Therefore, the committee doubts their assumed capacity given previous record of collusion with smugglers. If the efficiency is there, prohibited frozen chicken and other contraband would not have flooded our markets,” the committee said.

    The committee said it discovered that any importer “that imports between five and 10 shiploads/vessel of rice into Benin Republic and destined them to Nigeria through the land borders already had predetermined motive to cheat Nigeria government of revenue through duty evasion.”

    According to the committee, there is no justification for importation of parboiled rice meant for Nigeria to be discharged at Cotonou and five per cent import duty paid on it.

    The commodity, it noted, is loaded into trucks and the importer pays N400,000 per truck at the Nigerian border and on arrival  pay another import duty of either 30 per cent or 70 per cent. “The committee does not see any logic in this.”

    Senate President Bukola Saraki described the matter as serious because it affects revenue generation and improvement of agriculture.

    He added that no genuine importer would prefer to import through the land border if there is no ulterior motive.

    Saraki said lifting the ban on land border importation of rice is definitely not in the interest of the economy of the country.

  • Smugglers flood Nigeria with expired rice

    Smugglers flood Nigeria with expired rice

    Smugglers seem to have taken over the Nigerian rice market, flooding it with substandard and expired brands.

    Hundreds of trailers have been crossing the porous borders unchallenged – a development that is endangering the country’s plans to achieve self-sufficiency in rice production.

    Industry sources and consumers have urged the Nigerian Customs Service (NCS) to curb smuggling. They also want the National Agency for Food, Drug Administration and Control (NAFDAC) to step up the inspection of rice stored at several locations in the country. Supply of expired and poisonous rice to unsuspecting consumers could rapidly develop into a major health disaster if left unchecked, a source said yesterday.

    Stakeholders have urged the Presidency to urgently step in by directing the regulatory agencies to take action to prevent the outbreak of diseases.

    Given the unmet demand of more than three million tonnes annually and owing to inadequate local production, rice consumption needs are currently limited to legal imports with high import tariff and lack of cohesive policy.

    Legal importers paying full tariff of 70 per cent will never be able to compete with smugglers who enjoy a free ride into the market, aided by negligible tariffs in neighbouring Cameroon and Republic of Benin and taking advantage of porous borders. To add to these woes, the Central Bank of Nigeria (CBN) also barred rice importers from accessing foreign exchange through its window.

    The resultant shortage in the market is now being exploited by smugglers, who prospered significantly in 2013 when they smugled around 2.5 million tonnes of rice into the country through the borders, without paying any duty. In 2013, the Federal Government increased rice importation tariff to 110 per cent as against zero duty regime administered in Benin and Cameroon.

    The National Rice Millers Association of Nigeria (NRMAN) has complained that the NCS erred in its decision to lift the ban on rice importation through land borders. Its chairman said if the NCS succeeds in its decision, it would erode the gains achieved by the previous administration in the country’s rice value chain.