The Chairman of the Northern Chamber of Commerce, Industry, Mines, and Agriculture, Alhaji Dalhatu Abubakar, has raised an alarm regarding the scarcity of raw materials that is currently compelling rice millers to shut down their operations.
He emphasised the potential danger this poses to rice production and expressed concerns that Nigeria might face severe food insecurity if the scarcity of paddy, a key raw material for rice production, persists.
Speaking on Monday in Kano, Alhaji Dalhatu Abubakar, who also holds the position of Chairman at Al-Hamsad Integrated Rice Mill, explained that the scarcity of paddy could result in an increase in the price of finished rice.
This, in turn, might impact the activities of smugglers. He pointed out that Nigeria is currently the largest rice producer in Africa, with an annual production of approximately 8,435,000 tonnes, followed by Egypt, Madagascar, Tanzania, and Mali.
In light of these challenges, he called on the Federal Government to intervene by focusing on mechanization and providing necessary inputs to farmers to enable year-round production.
Alhaji Abubakar revealed that numerous millers have already reduced their production hours, some from 24 to 12 hours, leading to the unfortunate layoff of factory workers.
He stated, Today, hundreds of millers, both integrated and small-scale, are in a serious dilemma and finding it extremely difficult to break even.
It is difficult to sustain production now because of the scarcity of paddy. As I speak, I know many millers that have completely closed their factories.”
He further highlighted, “Those that are yet to close because they still have limited paddy in their reserves cannot operate 24 hours a day.
Like me, I have reduced my production to 12 hours because I don’t have paddy. By implication, several workers will be rendered jobless.”
Apart from the scarcity of raw materials, a significant portion of integrated rice millers in Kano are grappling with sourcing paddy at exorbitant prices—N400,000 per tonne, compared to the N330,000 price in June 2023.
Alhaji Abubakar noted, “Wherever you find paddy now, you purchase it at exorbitant prices, and you’re still burdened with high fuel costs, taxes, and electricity bills.
How many factories can survive this challenging economic climate? The inevitable outcome is the cost of finished rice, which Nigerians will soon face.”
Alhaji Abubakar went on to caution that this situation could lead to an increase in the cost of locally produced rice, potentially fueling demand for foreign rice.
Such a scenario could undermine the progress the Federal Government has achieved in ensuring local rice security over the past eight years.
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