The Chief Executive of Green Energy Biofuels, Femi Oye, says lowering production costs is the key to increasing rice availability and lowering its price.
The current price of a 50kg bag of rice ranges from N70,000 to N80,000 depending on quality.
Oye underlined how important it is to reduce rice production costs if the government is to achieve economic stability and food security.
He underscored the necessity for government intervention to empower local farmers to produce rice competitively, particularly in light of imported varieties that benefit from reduced tariffs.
Oye emphasised that lowering these costs is vital for ensuring food security and economic stability.
He reiterated that the reduction of tariffs and the government’s direct sale of imported rice should significantly decrease the retail price of rice but that efforts must be channeled into protecting the local industry.
By substituting costly fossil fuels with more economical biofuels, he indicated that farmers can significantly lower their operational expenses.
He said that his company has successfully produced biofuel from water hyacinth and that it is ready to work with the public and private sectors to further explore new forms of biofuels.
He went on to say that the availability and renewable nature of biofuels contribute to a reduction in the use of fossil fuels and the stabilisation of energy costs.
According to him, biofuels can effectively operate rice plantations, milling operations, and essential farming equipment such as harvesters and tractors.
To this end, he called upon the government to support initiatives that aim to harness renewable energy for rice farmers.
Oye highlighted the potential of rice waste to generate substantial quantities of biofuels.
He stated that millions of tonnes of rice straw are incinerated post-harvest, contributing significantly to greenhouse gas emissions.
He explained that palm oil can be converted into biofuel which can subsequently be utilized to operate various machinery.
Meanwhile, the Food and Agricultural Organisation (FAO), report titled, “Food Outlook: Biannual Report on Global Food Markets released recently noted that though Africa has been projected to expand its production of rice, the outlook in Nigeria is dampened as escalating energy costs and difficulties in marketing produce are reducing milling operations in the country.
The report stated that Africa appeared to be headed towards its third successive production expansion, with 28.4 million tonnes forecast to be gathered across the continent in 2024/25, up 4.0 percent year-on-year and a record high.
But in the case of Nigeria, the report said the production outlook is dampened by hikes in input costs and difficulties marketing produce following reductions in milling operations caused by hikes in energy costs.
According to the report, supplies of most of the world’s major food commodities are expected to be adequate in 2024/25, although extreme weather, rising geopolitical tensions, sudden policy changes and other factors could all potentially tip the delicate global demand-supply balances and impact prices and global food security.
The FAO Food Outlook stated, “World outputs of rice and oilseeds are expected to be at record levels, while those of wheat and maize will likely decline modestly.”
The report further projected that world rice trade would fall to a four-year low in 2024 from an estimated 52.9 million tonnes in 2023 to 51.4 million tonnes this year.
It stated that this would represent a four-year trade low and, from a regional perspective, would be largely imputable to expected import cuts in Africa. The contraction would be consistent with the positive harvest results attained on the continent.
It added that “persistent cost pressures stemming from weak local currencies, elevated international prices and, in some cases, also higher transport and insurance costs, Nigeria, as well as Egypt, Ethiopia, Ghana, Madagascar and Sierra Leone, could also slash purchases or keep them at comparatively reduced levels.”
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