Border Closure: RIPAN Raises Alarm Over Price Hike On Local Rice By Distributors
Following the shutdown of the country’s land borders since August, the Rice Processors Association of Nigeria (RIPAN), has raised alarm and warned against what it described as the exploitative jerking up of prices of local rice in the country.
The warning followed the noticeable increase in the prices of local rice across several markets in the country.
Rising from a stakeholders meeting of RIPAN with the Central Bank of Nigeria (CBN), Federal Ministry of Agriculture and Rural Development, Small and Medium Scale Millers Association (SMSMA), Rice Millers Association of Nigeria (RIMAN) and some commercial farmers, the association specifically cautioned rice distributors, wholesalers and retailers against engaging in the exploitative act of jerking up the prices of their local rice.
Executive Member of RIPAN, Mr. Abba Dantata noted that the sharp increase in the price of bags of local rice across several markets in country is the handiwork of some wholesalers, distributors and retailers of the staple food commodity.
Dantata explained that RIPAN summoned the meeting not as a result of the closure of the borders which has generated brouhaha but owing to the fact that some rice traders have been exploiting members of the public by unnecessary hiking of the price of the local rice.
He noted that members of the RIPAN and other rice processors sell a bag of rice to wholesalers above their fixed price of N14, 000.
According to him; “It will surprise you to know that some RIPAN members even sell a bag of their locally-processed rice for N13, 500. There are those who choose to sell for N13, 800. Others sell bag of their local rice for N13, 900. But none of our members sell above N14, 000.
“Some retailers, wholesalers and distributors, who have since cashed in on the shutdown of the country’s land borders, are the ones who sell a bag of rice for between N17, 000 to N18, 000 to their customers and other Nigerians.
“Those buying from us are the ones engaging in needless and exploitative profiteering. They are the ones taking advantage of the system to hike their price,” Dantata said.
He however said that without adequate supply and with higher demand, there is bound to have a price hike, Dantata said that it is however expected that there will be an initial hike in the price of the commodity, adding however that the prices would soon drop.
He said; “The prices will crash by the time the volume of local rice supply increase in the market with more supply.”
Dantata dismissed media report that the price of local rice will exceed N30, 000 during the forthcoming yuletide, saying the story is only aimed at causing panic among consumers and buyers.
Asked if RIPAN has evolved measures to check the over-exploitation of rice buyers by wholesalers, Dantata, said only government and other relevant law enforcement bodies can formulate, monitor and then enforce adherence to the stipulated price for selling the commodity.
He called on rice distributors to be responsible and humane, while also appealing to them to stop jerking up price of their commodities beyond consumers’.
According to the RIPAN member, shutting down the borders has not only curbed the illicit activities of smuggling, but also helped to reduce unemployment and boosted the country’s economy.
While urging the Federal Government not to review the policy, Alh. Dantata, said “when the borders were porous, activities of rice smuggling was rife in the country. Then, most of our rice millers had to close down their factories. But with the recent closure, most of them are now back in business, and doing very well. The last thing RIPAN and other local millers want to hear is that government will soon re-open the borders.”
