• Thursday, April 25, 2024
businessday logo

BusinessDay

In Kwara, abundance of paddy rice but scarce mills

20181211_085546 (1)

Thousands of farmers cultivating rice in Kwara state are struggling to find market for their paddy rice, even though in some quarters, it would be said that Nigeria is currently undergoing a ‘rice revolution’. Proximity of manufacturing or processing facilities to the source(s) of raw materials has often been described as one of the basic principles in ensuring a seamless production process. However, the opposite appears to be the case in Kwara state during a visit to some rice producing communities.

The Rice Farmers Association of Nigeria, Kwara state chapter, says it has about 10,000 registered members, and while the figure of non-members is not known, it could be as much as half the population of registered rice farmers. Interacting with a number of farmers during a trip to Edu and Patigi local government areas – some of the prominent rice producing areas in the state – farmers and bulk traders of paddy rice, complained of an inefficient off take system where they have to rely on rice mills coming from several states away to purchase paddy. This denies the locals of jobs and even for farmers, better revenue from their paddy rice, since aggregators have to take a cut from taking outside the area. Though no official data exists on volume of rice produced in Kwara state, some estimates indicate it could be close to 500,000 metric tonnes.

The response from farmers and paddy rice traders, when asked about any available mill in the state is a rice-processing mill said to be located in Offa. For the most part, rice grown on the fields in Kwara, find its way to Labana mills (and others) in Kebbi, and Kano state was also frequently mentioned. For these farmers in Kwara, any investor that situates a rice mill within the rice producing communities, is guaranteed of a steady supply of raw materials.

Abubakar Haruna, the village head of Duku-Lade, now in his 60, said in an interview, that he grew up meeting rice cultivation in the village. “Rice production here has been in existence for more than sixty years,” he said.

“Even though imported rice is no longer available, still, there isn’t market for our (local) rice as we want it. Till today, people want to sell their (paddy) rice, but no market at Lade,” said Haruna, who also stressed, “Be it private or government that can assist us with a big rice mill here, if there is a rice mill in Lade, it will help us a lot.”

“If we can have a rice processing mill here, even the farmers will enjoy because there will be an improvement price. With a rice mill here in Lafiagi, we believe there will be increase in money going to farmers, and with that, they will increase their production. The price of paddy sometimes discourages farmers,” said Siddik Abdulahi, Kwara’s RIFAN chairman.

While the farmers eagerly long for big rice mills, that can absorb the volume of rice produced within the state, aggregators are cashing in on an opportunity to play intermediaries. However, what appeared to be impressive in this is the gradual transition to weight based transactions.

In the past, paddy rice like most other agricultural commodities was sold by bags not weight. This meant, two farmers could offer bags of the same commodity and be paid the same amount because the bags looked equal in size. The weight, which is what matters, was not a factor. However, during the visit to Lafiagi, this is gradually changing.

Umaru Magaji, one of the paddy rice suppliers in Edu local government, said he supplies to companies in various states, including “Argungu and Labana in Kebbi state”, and some others in Kano state. Magaji explained that the standard to buy based on weight was put in place by the big rice milling companies that he supplies. Every day, at least three trucks, and as many as five trucks, each containing 500 bags of paddy are loaded from Magaji’s depot. Other aggregators gave similar numbers.

At the time of visiting the community, paddy rice was sold at N100 per kilo, which for a 75kg bag would translate to N7,500. It was revealed that the rice mills provide these aggregators with cash up front, with which they purchase the rice at stipulated prices based on weight.

Other aggregators like Muhammad Saidi, also purchase paddy rice from farmers, but using the old method of fixed prices per bag. They simply lift it up, and if considered ‘heavy enough’, the money is paid. For both types of aggregators, an important thing they check is the moisture content, which has to fall within a minimum of 7 and maximum of 13.5.

 

CALEB OJEWALE