Paddy Scarcity: Rice Mills Close Shop In Kano
The Chairman of the Northern Chamber of Commerce Industry, Mines and Agriculture, Alhaji Dalhatu Abubakar on Monday, raised alarm over the scarcity of raw materials that is currently forcing Miller’s to shut down.
According to Food and Agriculture Organisation of the United Nations (FAO), Nigeria is presently the largest producer of rice in Africa, producing about 8,435,000 tonnes annually, followed by Egypt, Madagascar, Tanzania and Mali.
Dalhatu Abubakar who is also the Chairman, Al-Hamsad Integrated Rice Mill told Reporters in his office that the implication of paddy scarcity would forced increase in the price of finish rice, which would further mitigate activities of smugglers.
The soft spoken Industrialist expressed fear that food insecurity may hit its worst level in Nigeria if the present scarcity of paddy, a major raw material for the production of finish rice persist.
Abubakar stressed that several millers have cutdown production from 24 to 12 hours while laying off factory workers who are, by no means, rendered redundant.
He therefore called on the Federal government intervention on the area of mechanization and assisting the farmers with needed input that would enable all year round production.
According to him, “Today hundreds of millers both the integrated and small scale are in serious dilemma and finding it extremely difficult to break even. It is difficult to sustain production now because of scarcity of paddy. As I speak, I know many millers that have completely closed their factories.
He disclosed that “those that are yet to close because they still have limited paddy in their reserve cannot operation 24 hours. Like me, I have reduced my production to 12 house because I don’t have paddy. By implication, several workers will be rendered jobless.”
Dalhatu Abubakar revealed that “Where ever you see paddy now, you buy it at exorbitant prize and you will still be compelled to face high cost of Fuel, pay tax, electricity bill. How many factory would survive this hard economy. The only hard way now is, the cost of finish rice which Nigerians will soon face,” Abubakar noted.
He stressed that “Besides the dearth of the raw material, larger percentage of integrated Rice millers in Kano are presently sourcing paddy at exorbitant prize now at N400,000 per tone, the same quantity previously sold for N330,000 in June, 2023, in other to meet the high market demand.”
Alhaji Abubakar explained “that alone may lead to increase in the cost of local finish product and if allowed unattended, will give raised to demand for foreign rice thereby cripple the relative success the Federal government has recorded in local rice security in the last eight years.
