RIPAN explains why the price of rice increased from N19,000 to N23,000
The Rice Processors Association of Nigeria (RIPAN), Kano State Chapter, attributed the hike in the price of rice from 19,000 to N23,000 to the increase in the price of paddy rice.
A member of RIPAN, Alhaji Abba Dantata, stated this in Kano on Monday during a joint press briefing with Kano State Public Complaints and Anti-Corruption Commission (PCACC) over the constant increase in the price of rice in the state.
“There is no way we can sell 50kg bag of rice below N23,000; cost of production is so high.
“From April to date, a ton of paddy rice, which used to cost N180,000, now costs N225,000,” he said.
He further explained that the high rate of foreign exchange and the difficulties in sourcing the same for the maintenance of industrial machines, as well as the hike in the price of diesel, also contributed to the high cost of rice.
According to him, the Central Bank of Nigeria without notice, withdrew its Agro Fund Loan in 2020, thereby making the processors seek an alternative source of funding.
“Some of us went to commercial banks to borrow money at 20 per cent, 22 per cent and 25 per cent interest, depending on the bank,” he explained.
The Executive Chairman of PCACC, Mr Muhyi Magaji-Rimingado stated that the aim of the meeting was to find lasting solutions to the problem of a hike in the price of the commodity.
He said the commission would take steps to check the hoard of food items, especially paddy rice, to ensure its availability.
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