The Rice Processors Association of Nigeria, RIPAN, Kano state chapter, has explained that the hike in price of rice from N19,000 to N23,000 is the result of the increase in the price of paddy rice and other associate costs. .
RIPAN member, Alhaji Abba Dantata, gave the explanation at a joint media briefing with Kano State Public Complaints and Anti-Corruption Commission, PCACC, in Kano on Monday. He noted that there is no way anyone can sell a 50kg of rice below below N23,000 given that associate production cost has become astronomical.
“There is no way we can sell 50kg bag of rice below N23,000. Cost of production is so high. From April to date, a ton of paddy rice, which used to cost N180,000, now costs N225,000,” he said.
Dantata also explained that the high rate of foreign exchange and the difficulties in sourcing same for the maintainance of industrial machines and other sundry challenges, including the hike in price of diesel, are aggregate reasons for the spike in the price of rice. He added that another contributory factor is Central Bank’s unannounced withdrawal of Agro Fund loan which, according to him, compelled rice farmers and processors to seek for alternative sources. The development, he disclosed forced many of them to approach commercial banks for loans with exorbitant interest rates.
“Some of us went to commercial banks to borrow money at 20 per cent, 22 per cent and 25 per cent interest, depending on the bank,” he explained.
Executive Chairman of PCACC, Mr Muhyi Magaji-Rimingado, noted that the meeting was aimed at finding solutions to the problem of hike in price of rice. Meanwhile, he promised to take necessary steps to check hoarding of food items, especially paddy rice, to ensure its availability.
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