By Faridat Salifu
Major rice millers in Nigeria have begun taking coordinated steps to combat post-harvest hoarding, which they say is a key factor behind the sharp rise in food prices in recent months.
Speaking to journalists after a meeting with President Bola Tinubu at the Presidential Villa on Thursday, Chairman of BUA Group, Abdul Samad Rabiu, said hoarding by middlemen and traders not farmers was largely responsible for the price surge that saw paddy rice rise from N400,000 to N800,000 per tonne in just a few months.
He explained that millers under the Rice Millers Association have resolved to discourage such speculative practices within the industry, warning that any attempt to manipulate prices would be countered by flooding the market with stockpiled supply.
“Anybody who tries to hoard rice and try to take the price up, we are going to crash the price,” Rabiu stated, adding that BUA Foods has enough inventory to meet demand through the end of the year.
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The coordinated move by processors comes as rice prices have begun to ease across the country, following the federal government’s introduction of a 150-day duty-free import window for key grains. The initiative, announced in July, allowed for tax-exempt imports of rice, maize, wheat, and cowpeas through both land and sea ports.
Rabiu confirmed that BUA took advantage of the waiver scheme to import large quantities of grains, helping to reverse the trend of inflation and disrupt the plans of those who had stockpiled products to sell at inflated rates.
“Prices have come down significantly,” he said. “Rice that sold for N100,000 per 50kg bag is now about N60,000. Maize is selling for around N30,000, and flour is down to N55,000.”
He emphasised the need to strike a balance between protecting farmers and ensuring consumers are not exploited by speculative pricing practices.
While the current market is seeing more stability due to improved supply, analysts warn that prices could spike again in 2025 if the duty-free window is not renewed, especially given projections of lower domestic rice production and rising demand.
The federal government has also moved to boost food security by directly importing 250,000 metric tonnes each of maize and wheat to replenish the National Strategic Grain Reserve.
