Updated: FG announces new tomato policy to grow local industry, curb wastage

…Policy to curb 40% wastage,create 60 000 direct jobs

‎….Importers of tomato paste to pay $1 500 per metric tons

The Federal Government on Tuesday, said it is coming up with a policy to protect Nigeria’s tomato industry, valued over $180 million, address concerns posed by post harvest losses and address the concentrate needs of the tomato paste segment, as regards concentrate requirements.

The blue-print of the policy which was developed by the Ministry of Industry, Trade and Investment (MITI) is in line with the Federal Government’s goal of boosting production, improving the value chain and attracting investment.

Okechukwu Enelemah, Minister of Industry Trade and Investment, said the tomato policy ‎ would protect local production in the value chain down to the processors.

‎Enelemah informed newsmen on Tuesday in Abuja, that the key objective of the policy is to facilitate an increase in production of tomato fruits for processing and consumption,in addition to promoting job creation and diversification of the economy.

Enelemah further said the policy was developed and is being implemented in collaboration with the Federal Ministry of Agriculture and Rural Development, Federal Ministry of Finance, Federal Ministry of Water Resources, Central Bank of Nigeria, Bank of Industry and the National Agency for Food and Drug Administration and Control.

According to him,the Federal Executive Council (FEC) approved the policy and the implementation of certain extraordinary price-based measures to safeguard the balance of payments.

Giving further insight on key measures of the policy, Enelamah said it would ensure classification of greenhouse equipment as agricultural equipment, in order to attract 0% import duty, and also ensure stoppage of the importation of tomato paste, powder or concentrate put up for retail sale.

It would also stop the importation of tomatoes preserved otherwise by vinegar or acetic acid,in addition to increase of the tariff on tomato concentrate to 50% with an additional levy of $1,500/MT.

The policy would also ensure the restriction of the importation of tomato concentrate to the seaports, to address the abuse of the ECOWAS Trade Liberalisation Scheme (ETLS);ensure inclusion of tomato production and processing in the list of industries eligible for investment incentives administered by the Nigeria Investment Promotion Commission (NIPC).

Notably,Enelemah explained the measures will become effective 30days after April 7 this year, when the ECOWAS Secretariat was notified. “Please note that we’re not using the word ‘ban’. These are price-based measures. The vocabulary ‘ban’ is WTO-inconsistent and irregular, except the product relates to a science-based risk to human, animal or plant life.”

He further informed that “the new policy is at the core of the Nigeria Industrial Revolution Plan (NIRP), which prioritises agro-allied businesses, an area that we have comparative advantage”

He continued: “These measures ultimately, accelerate the growth of the manufacturing industry and deepen diversification.”

Nigeria imports an average of 150,000 metric tons of tomato concentrate per annum, valued at $170million, mostly due to inadequacy in capacity to produce tomato concentrate. Current demand for fresh tomato fruits is estimated at about 2.45million metric tons per annum (MTPA) while the country produces only about 1.8million MTPA.

Despite the supply gap, about 40% of fresh tomato produce is lost due to wastage arising from poor post-harvest handling.

 

HARRISON EDEH