Price For Bag Of Rice

Explainer: How recent floods will impact price of a bag of rice

The floods sweeping through many parts of Nigeria have taken a huge toll on some rice farms.

Thousands of hectares of rice farms in Taraba, Jigawa, Kano, Benue, Niger, Kogi, and Kebbi, among other states, accept been reportedly washed abroad.

"Though the impact of the flood on rice farms in Kebbi State is non as bad as we expected, as those who have their farms in areas not prone to flooding have been able to get skillful harvest, rice farms near River Niger have suffered a lot of damage," said Muhammad Augie, former chairman of Rice Farmers Association of Nigeria, Kebbi Country chapter.

Augie said the flooding will certainly affect rice prices negatively as Kano, Jigawa, Taraba, Niger, and many other states that are the hubs of rice production in the land had their farms badly afflicted.

"They will feel low harvests this year, which will and then translate to loftier toll of rice," he said.

The rising flood in Nasarawa Country has wrecked and immersed the Olam Rice Subcontract, which is worth over $15 million.

The farm has lost over 4,500 hectares of cropping country, according to a statement issued past the company.

Ade Adefeko, vice president of Olam Nigeria Limited, while explaining the consequence of the flooding on their rice farm and its ripple issue on the cost of rice, said: "Well, with what happened on Oct two, I will tell you that 25 pct of the crop for rice has been taken out. Nosotros should expect an increase in rice prices in Dec. Of form, that goes without maxim, because the entire crop has been lost."

Read also: Destruction as overflowing rages through Agege community

There are fears amid stakeholders in the rice value chain that the flooding that is still wreaking havoc on rice farms in rice-producing areas volition affect the harvest. The boilerplate Nigerian also fears that rice, the most mutual staple, may surge during the festive season.

Emeka, a wholesale rice seller at Boundary market, complained that just concluding week, local rice (50kg) was sold for N34,000 while foreign rice was sold for N38,000, merely this calendar week foreign rice is N40,000-N42,000 per (50kg) while local rice is N37,000-N39,000.

"The problem we are facing is explaining the bound in price to retailers and consumers," he said.

The recent flooding in many parts of the country is expected to worsen the food inflation in the country, particularly for major nutrient staples such as rice.

The National Bureau of Statistics said food aggrandizement accelerated in September for the seventh straight calendar month to 23.34 pct, acquired by increases in prices of bread and cereals, food products, potatoes, yam, and other tubers, besides as oil and fats.

In the months alee, rice may exist on the listing of food items seen to exist pushing upwardly food inflation.

Megamillions