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Farmers predict maize price crash over strategic release

maize-prefered

Okechukwu Nnodim, Abuja

About 300,000 metric tonnes of maize will be released in February into the Nigerian market from strategic anchors under the Anchor Borrowers’ Programme of the Central Bank of Nigeria and this should lead to a crash in the cost of maize.

National President, Maize Association of Nigeria, Bello Abubakar, said in Abuja on Monday that the release of the maize from strategic anchors would reduce the current price of maize from N155,000 per metric tonne.

Another operator in the maze value chain, Edwin Uche, expressed optimism about the price crashing to N120,000 per metric tonne in the next couple of days.

Abubakar said the planned release followed moves made by critical stakeholders, working with relevant government and security agencies, to put an end to the speculative activities of middlemen.

The MAN president stated that with the release of 300,000MT in February 2021, it was expected that the prices of maize in the Nigerian market would drop significantly.

This, he said, would increase demand for the crop and ultimately enhance the gains of maize farmers.

Prior to the CBN and Nigeria Customs Service collaboration, the President, Major General Muhammadu Buhari (retd.), had approved the release of 30,000 tonnes of maize from the national strategic grain reserve to support the Poultry Association of Nigeria at a subsidised rate.

Abubakar attributed the current shortfall in the quantity of maize available in the market to insecurity around the major maize producing belt of Niger, Kaduna, Katsina, Zamfara and parts of Kano states.

He also identified the activities of hoarders and middlemen who engage in hoarding of the grain to the shortfall.

Speaking further on the matter, Uche said banditry, drought in some parts of the country in 2020 and the activities of middlemen were responsible for the current high price.

He, however, stated that the planned dry season farming, which was first of its kind in the country, timely distribution of inputs to farmers and improved security would go a long way to enhance production and ensure stability in price.

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Okechukwu Nnodim

Okechukwu, a journalist with Punch Newspapers, has 15 years experience covering Energy (Power and Petroleum), Finance, Agriculture, Environment, Humanitarian Services, Works and Housing, Trade and Investment, Capital Markets, Aviation and Transport, ICT, among others

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