NCX signs agreement with China on agric produce

The Nigerian Commodity Exchange (NCX) has signed a Memorandum of Understanding (MoU) with the China Chamber of Food Stuff, Native Produce and Animal Products (CFNA) on the sale of agricultural produce, especially sesame seeds. Speaking on the MoU, the Managing Director of NCX, Zaheera Baba-Ari, said the agreement, which was signed in China on April […]

The Nigerian Commodity Exchange (NCX) has signed a Memorandum of Understanding (MoU) with the China Chamber of Food Stuff, Native Produce and Animal Products (CFNA) on the sale of agricultural produce, especially sesame seeds.
Speaking on the MoU, the Managing Director of NCX, Zaheera Baba-Ari, said the agreement, which was signed in China on April 7, was aimed at promoting trading in viable agricultural produce between the two countries through the joint market platform of NCX and CFNA.
She said the agreement would also help to advise appropriate marketing mechanism for the procurement of agricultural commodities from Nigeria by the Chinese companies.
“China is one of the major buyers of sesame seeds and they see Nigeria as market point for them. Their demand for sesame seeds this year stands at 700,000 tonnes, which is an advantage for our farmers to grow more of the seeds in order to meet the demand,’’ she said.
Baba-Ari charged farmers who grow the seed in Nasarawa, Jigawa, Gombe with high oil content as well as those in Benue, Taraba, Kano, Zamfara, Bauchi, Plateau, Yobe, Bornu, Niger, Kogi and the FCT, who also grow the seeds to take advantage of the opportunity by growing more as there was ready market for it.
She said the exchange would go into forward contract with the farmers to fulfill China’s demand.
“Merchants in China would place order for sesame seeds through the exchange and Nigerian farmers will sell to them also through the exchange. This arrangement will provide huge revenue for the government because income would be generated through what is being sold. Apart from this, it will generate employment as many people are expected to go into sesame farming now,’’ she explained.
She quoted CFNA’s President, Bian Zhenhu, as saying that his country entered into the partnership based on the confidence that buying commodities of interest from Nigeria would become more efficient for Chinese merchants.