Ban On Rice Creates Unemployment, Impacts Positively On Foreign Exchange-Ogbeh

Importation of rice into the country is having severe effects on rice production in Thailand.

494

Chief Audu Ogbeh, Minister of Agriculture and Rural Development has confirmed that the federal government’s ban on the importation of rice into the country is having severe effects on rice production in Thailand.

Image result for picture of Audu Ogbeh at the 10th mid-term town hall meeting
Audu Ogebeh at the 10th mid-term town hall meeting in Abuja

Ogbeh, revealed this, at the 10th mid-term town hall meeting which was held in Abuja.

EFFECT OF BAN ON THAILAND

Ogbeh stated, that the increase in the production of rice in Nigeria has led to the closure of seven factories in Thailand

The affected mills are considered to be among the biggest producing rice in the South-East Asian country

Thailand used to be the largest exporter of the food, a staple to Nigeria

Unfortunately for them, the Nigerian government placed a ban on the importation of rice at the inception of the current administration

RICE IMPORTATION

Related image

Ogbeh again revealed, that as at 2014, Nigeria imported 580,000 tonnes of rice both from Thailand and India

The volume however dropped drastically by almost 50 per cent to 280,000 tonnes in 2016

Allowing government to save more foreign exchange that would have otherwise gone into importing the commodity.

“We have no reason to be importing everything

“The Thai rice is of low-grade because it is stored in silos for many years before it is exported

“The Thais don’t eat parboiled rice; they eat white rice.” Ogbeh reveled

ANCHOR BORROWER’S PROGRAMME

Image result for picture of anchor borrower program
ANCHOR BORROWER’S PROGRAMME

Agric Minister however lauds the Anchor Borrowers’ Programme of the Central Bank of Nigeria (CBN) in Kebbi State which has involved 400,000 farmers

He similarly encouraged Nigerians, to emulate the state by growing and eating locally grown rice

GOVERNMENT’S PLAN

Audu Ogbeh minister of Agriculture and Rural Development

Like wise, Ogbeh made known government’s desire to plant 10 million cocoa trees annually in 28 states

He adds that the Nigerian authorities are on alert, following report of an attempt to import eight shiploads of low quality rice to Benin Republic for onward smuggling into Nigeria.

LOCAL RICE

Ogbeh subsequently proffered reasons the imported rice is cheaper than local rice.

Image result for picture of bags of Indian rice
Imported Indian Rice

According to him, he says rice cultivation is highly subsidised in Vietnam, India and Thailand to earn foreign exchange

CHALLENGES OF LOCAL RICE FARMERS

Image result for picture of rice farmers during planting season for rice

Meanwhile, Nigerian farmers sell at higher prices because they borrow at higher interest rates from banks.

Variable costs incurred on diesel to power Mills and transport expenses, also combine to make Nigerian rice put at between N15,000-N17,000 per 50kg bag, costlier in the market, he says

While Rice from South-east Asian countries however sells for about N13,000 a bag.

HERDSMEN

Ogbeh further informed the gathering, that President Mohammed Buhari has given approval for government to table the issue of the killing spree by herdsmen in several communities at the next African Union (AU) summit

This will serve as a mark of protest against the herdsmen alleged to be infiltrators from other African countries