01122019 - 13 states struggle for 7.5 metric tonnes of rice

PAGE 12, SUNDAY VANGUARD, DECEMBER 1, 2019
Daleko,
Lagos
market
where local rice is gold
where local rice is gold
•High demand, low supply battle
By Bose Adelaja
Three months into the closure of Nigeria’s
land borders, many appear to be adapting
to its effects.
The closure has not only brought about
scarcity of imported food items in the country
but has also escalated prices of imported staple
foods like rice which is usually in high demand.
Before the closure, imported rice brands were
in high demand across the country. The
aftermath of the border closure has however
affected the distribution chain of this staple
food which is now assumed to be very scarce in
the country.
The popular saying “a bird in hand is worth
millions in the bush” however seems to be
currently playing out in markets across the
country as locally-produced rice such as
Ofada, Abakaliki, Stallion and Lake Rice,
are gradually gaining acceptance with many
consumers opting for them in place of the
scarce foreign rice.
This was the exact situation in Daleko
Market, Lagos State, during the week, where
traders claimed they have since embraced
locally-produced rice which, according to
them, is of better quality.
Daleko Market is the chain distribution hub
of both local and foreign grains in Lagos State.
Though one of the traders, Madam Esther
Ugochukwu, told Sunday Vanguard that the
border closure has negatively affected her
business, 80 percent of the traders said the
closure is more of a blessing in disguise.
Local grains
In the course of this report, Sunday Vanguard
observed that 90 percent of the market supply
are local grains in various sizes such as 50, 25,
10 and five kilogrammes. They are of different
brands.
Apart from the existing locally-produced rice,
other brands that were noticed at different stalls
and shops last Wednesday were Alhamusad,
Labana, Umah, Nigeria Champion, Mama’s
Pride, Mama Choice, Savana and Famous
Parrot, with prices ranging between N17,500
and N19,000 per 50 kilogrammes. 25
kilogrammes were between N9,000 and
N10,000 each but the traders described the
ones sold for N17,500 and N9,000 as low in
quality due to the availability of sand in them.
Low supply
Regarding supply, the traders said suppliers
bring samples to the market to seek patronage,
unlike the foreign rice brands which are
difficult to get.
Also, Sunday Vanguard observed that 80
per cent of intending buyers opt for locallyproduced
rice whose supply is low.
Another trader, Chris Mbaju, blamed the
federal government for what he described as
improper distribution chain of the local grains
across the country.
He said: “If government
wanted to make things easier,
it could have sold the local
grains through government
outlets, local governments,
electoral wards or common
markets. Unfortunately, the
products are not distributed to
the points that they are easily
affordable and accessible to
the common man.”
Distribution chain
Speaking to Sunday
Vanguard, the Yeye-Oge of
Daleko Market, Alhaja
Fausat Ariyo, said the present
situation has created an
avenue for local farmers to
expand rice production by
introducing various brands in
addition to the existing ones.
She said the scarcity of rice
was observed three months,
adding that the effect is being
effectively managed to the
extent that consumers of rice
have realised the need to adjust
to the situation by consuming
locally-produced rice.
The Yeye-Oge said three
months ago, the demand for imported rice was
higher than supply, adding that the traders had
to start telling the buyers about locallyproduced
rice.
According to her, the sensitisation seems to
have yielded results as the demand has
increased.
She, however, noted that access to the product
has been very difficult, especially now that
Christmas is around the corner.
At least, a 50kg
bag of Lake Rice
was sold at
N12,000 in 2018.
What could have
prompted the
sudden hike in
price when there
is no duty,
premium or extra
cost of
production for it?
Consumers’ health
She said the difference between foreign and
locally-produced rice is glaring.
“The border closure has enabled local farmers
to expand rice production. Also, the local rice
is nutritious, fresh and less starchy, unlike the
foreign rice which is chemically-preserved,
thereby causing some damaging effects on the
consumers’ health,” she added.
According to her, the effect of the border
closure has exposed some hidden things which
ordinarily may not have been
exposed.
She said: “Before the border
closure, the locally-produced
rice was sandy, less attractive
and of low quality. But the
closure has opened our eyes
to the need to upgrade it for
general demand. If this
tempo is sustained, our
local rice will compete
favourably with foreign
rice.”
In terms of patronage,
she explained: “Do you
know that some brands
of foreign rice expire
before being shipped
into Nigeria whereas
local rice is fresh, tastes
fine and digests easily
such that a good
number of Nigerians
are gradually shifting
their attention to it.”
Alhaja Ariyo, who
regretted that the
demand for locallyproduced
rice is
currently much higher
than supply, advised
Nigerians to exercise
patience till the situation is amicably
resolved.
She said: “Nigerians have seen the need
to buy locally-produced rice but the
supply cannot meet up with the demand
although nothing good comes easy,
brighter years are ahead if only we can
be patient. This is my 28th year in this
business and I make bold to tell
Nigerians to be patient as the locally-produced
rice will be upgraded to meet with our
yearnings.”
Hike in price
Another market leader in Daleko, Ms.
Monilola Adeniregun, lamented the exorbitant
price and low supply of locally-produced rice.
“In my 20 years in this business, this is the first
time I am running from pillar to post to meet
with demand.
“There is the problem of distribution in the
sense that the privileged ones who have access
to the product have constituted themselves into
a cartel in a way that the totality of the rice to
be sold to common people is being hoarded by
them. This is aimed at causing artificial scarcity
in order to amass more wealth since prices
will automatically shoot-up when there is
scarcity.
“At least, a 50kg bag of Lake Rice
was sold at N12,000 in 2018. What
could have prompted the sudden hike
in price when there is no duty, premium
or extra cost of production for it? If it
were to be imported, it obviously would
have been costlier than the foreign
rice.”
She called on government to do the
needful.
“The government should work on
the method of distribution so that it
can reach the common man on the
street. Can you imagine that Lake Rice
which was jointly produced by Lagos
and Kebbi states is very scarce in
Lagos and residents cannot get the
product to buy except through the rice
merchants, “ she added.
She gave the current price of
locally-produced rice as between
N250 and N400 per Derica
while the foreign brand is between
N500 and N600 per Decrica,
depending on the brand.
“The most annoying thing is that
most of these foreign rice brands
have stayed longer than 10 years
but are being shipped to Nigeria
because Nigerians typically
appreciate foreign products more
than their locally-produced
counterparts,” she added.