Food prices drop ahead Ramadan

Prices of food commodities like maize, rice, millet, sorghum, beans, flour and soybeans, among others have dropped, especially in major producing states, a survey by Daily Trust has shown. This is happening ahead of the Ramadan, which commences in a few days. Non-producing states are also said to be feeling the impact of the reduction […]

Prices of food commodities like maize, rice, millet, sorghum, beans, flour and soybeans, among others have dropped, especially in major producing states, a survey by Daily Trust has shown.

This is happening ahead of the Ramadan, which commences in a few days.

Non-producing states are also said to be feeling the impact of the reduction in food prices.

Observation at grain markets in different parts of the country showed that agents of poultry feeds and rice milling companies as well as middlemen have scaled down the purchase of grains across states.

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Experts linked the declined market activities by the middlemen to low patronages experienced after Christmas and New Year breaks, leading to significant drop in prices of grains like maize, millet, sorghum, paddy and beans, in addition to massive imports of the commodities.

Others said the recent massive import of some of the agricultural produce also contributed to the drop in price.

For instance, a 50kg bag of flour, which was sold for N80, 000 before the importation some few weeks ago, is now between N61, 000 and N63, 000 depending on the market.

The same also applied to locally milled rice, which the import of the produce has also affected.

While prices of grains have dropped, those of groundnut, cocoa, yam, Irish potatoes, palm and vegetable oils remain slightly high in many markets visited by our correspondents.

 

Kaduna

At the Saminaka grain market in Kaduna State, a 100kg bag of maize, which was sold between N70, 000 and N75, 000 in most markets during harvest, is now N47, 000; while soybeans, sold for N110,000, is now N68,000.

Similarly, the white variety of beans, sold for N150, 000 during harvest, is now N100, 000.

At the Giwa market, also in Kaduna State, millet and sorghum were on Friday sold between N50, 000 and N51,000 as against the N79,000 to N80,000 sold last year before harvest.

The price of soybean dropped from N120,000 to N80,000; white beans, from N160,000 to N88,000; paddy, N75,000 to between N55,000 and N60,000.

Taraba

At the Mutum Biyu grains market in Taraba State, the price of a 100kg bag of paddy rice is now N45,000 as against the N50,000 last month; a 100kg bag of maize, sold previously at N57,000, is now between N40,000 and N45 000; a 100kg bag of dried cassava, previously N25,000, is now N18,000 and N19 000.

 

Benue

A market survey conducted by our correspondent across Makurdi metropolis, showed a significant drop in prices of essential food items compared to six months ago.

At the Wadata Market in Makurdi, Benue State, a 50kg bag of local rice is now between N26,000 and N29,000 as against between N45,000 and N55,000 it cost about six months ago. At the Modern Market, the price of a mudu of rice has dropped from N2,700 to N1,800, Daily Trust gathered.

Other staples have also seen price reductions as a big basket of tomatoes, previously sold for N45,000, now costs between N30,000 and N35,000. The price of a mudu of maize, millet, and guinea corn has fallen from N3,200 to N1,200; a litre of palm oil, is now N1,800 from N2,500; a rubber of garri, N2,300 from N3,500; 10 tubers of yam, between N10,000 and N15,000 from between N12,000 and N18,000.

Kano

In Kano State, our correspondent also reports a sharp drop in food prices. At Danhassan market, the price of a mudu of beans has dropped to N2,500 from N3,500; millet, N1,200 from N2,700.

At Dawanau Market, Kano, a mudu of maize is now between N1,200 and N1,300; millet, N1,000 and N1,100; beans, between N2,000 and N2,200 per mudu; a tuber of yam, between N2,500 and N4,000 depending on the size.

 

Niger

At Manigi market in Mashegu Local Government Area of Niger State, the price of a 100kg bag of red beans has dropped to N90,000 from the N200,000 sold last year before harvest; white beans, N90,000 from N160, 000;  white and red maize, N40,000 per 100kg bag as against the N85,000 sold before harvest; millet is now N45,000; sorghum, N40,000; a 100kg bag of soybeans, N78,000 as against the N135,000 last year.

At Lemu Market, a bag of millet, maize and sorghum is currently sold at N42,000; and a 100kg bag of rice (milled), N108,000.

In Bida, a trader, Mohammed Mahmud, noted that the price of processed rice had dropped from N130,000 to N120,000 per 100kg bag; paddy rice, from N51,000 to N45,000; a bag of sorghum and millet is now N45,000; maize, N48,000.

At Gwadabe weekend market, our correspondent reports prices of rice, maize and sorghum have also dropped.

 

Lagos

At Alaba Rago market, Ojo, a bag of rice which used to be sold for between N80,000 and N90,000, now sells for N65,000 and N70,000; while the price of a paint rubber of beans has dropped from N12,000 to N6500.

At Daleko market, Mushin, a 50kg bag of rice is now between N70,000 and N75,000; a paint rubber of honey beans, N8,500.

 

Traders cite naira gain, importation, others

Anas Usman, a businessman at Dawanau market in Kano, linked the price drop to importation of foodstuffs, massive release from warehouses and large scale farming conducted by farmers across the country.

He said: “People have released foodstuff to the market from warehouses and at the same time there was large scale importation from other countries.”

Other traders attribute the reduction in food prices to the zero-duty grains policy of the federal government.

The government had, in July 2024, approved the regulation for the implementation of a Zero Per cent Duty Rate and Value Added Tax (VAT) exemption on selected basic food items.

Some traders also cited the increase in the quantities of rice that comes in through the Seme and Idi-Iroko borders in Lagos and Ogun states.

One of the traders at Daleko market, Sade Baloguj, said she got her supply directly from Cotonou, Benin Republic.

She attributed the reduction in the price of rice to the rise in the value of naira as against the CFA.

She stated that the naira rose by about N65 within a space of one week.

“The price of rice may come down further if the naira appreciates against the CFA in the weeks and months to come,” she added.

An importer, Alhaji Olukolu Tunde Khallil, Chief Executive Officer (CEO) of Khallil Associate Nig Ltd., attributed the drop in prices of some food items to the “improved” security, especially in the North.

 

Farmers lament

Daily Trust reports that some farmers are expressing frustration over the development, saying the government had misplaced its priorities.

One of them said he harvested about 6,000 bags of 100kg but could not sell because of the low price compared to the high cost of inputs like fertilizer, which is needed for the next cycle of cultivation.

Another farmer, Abubakar Ismail, said government should subsidize farm implements so that in turn, farmers would also reduce the prices.

“Importation is just a temporary measure, it is not sustainable. Only God know how much the government spent to subsidize importers.

“We must face the reality by ensuring that we secure our farmlands, provide fertiliser and seedlings on time and also support farmers with basic tools. Nigeria is too big to survive on imports,” he said.

Abdullahi Musa, another farmer alleged that Nigerian borders were deliberately left opened for smugglers to import rice, beans, maize, among others in order the crash the prices.

“Some of us are now counting our losses…It is sad,” he said.

 

‘Inflation rate drop stabilising food prices’

The secretary of the National Agricultural Commodities Project (NACP), Abuja, Dr Austin Maduka, said the purported drop in the inflation rate was helping to stabilise food prices.

Alhaji Rabiu Gambo, a grain merchant in Jalingo, Taraba State, told Daily Trust that since the federal government announced its decision to grant import waiver last year for rice and maize, big companies and businesses that usually made bulk purchases of maize and paddy had reduced their purchases.

A dealer at Mutum-Biyu grain market, Taraba State, Musa Adamu, said since the announcement of three months import window for rice and maize, the market had slowed down.

He said at the beginning of harvest, the market was full with activities and prices went up, but soon after the announcement by the federal government, prices started coming down.

 

Consumers rejoice

Consumers, especially Muslims preparing for Ramadan fast, have welcomed the reduction in the prices of food items.

Hajiya Memuna Ahmadu, a civil servant in Abuja, said even though the reduction was not much in the nation’s capital, the drop in the prices of rice, millets, tomatoes, onions and sorghum would go a long way to help Nigerians struggling with the current economic reality.

“Last Tuesday, I went to Karmo market and I bought millet, sorghum, maize, beans and rice ahead of the holy month of Ramadan. I actually bought them at slightly reduced prices compared to what we bought last three weeks,’’ she said.

Mr Yusuf Jimoh, a civil servant, said he was waiting for February salary to make bulk purchases of the produce in view of the drop in the prices.

 

Food importation not a good devt – Farmers

The All Farmers Association of Nigeria (AFAN) said the importation of food items is not a good development for the nation’s agriculture.

Chief Daniel Okafor, Vice National President of AFAN, in a chat with DailyTrust, alleged that nothing was done to protect farmers before allowing grains’ importation.

“Farmers are not happy. Let me let you know that we are not there. It will discourage local production,” he stated.

By Vincent A Yusuf (Abuja), Magaji Isa Hunkuyi (Jalingo), Salim Umar Ibrahim (Kano), Abubakar Akote (Minna), Hope Abah (Makurdi), Hussaini Isah (Jos) & Eugene Agha (Lagos)