• Tuesday, June 25, 2024
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BusinessDay

AFEX predicts rise in commodity prices

Seyi John Salau

AFEX unveils its 2023 crop production report, projecting a surge in commodity prices due to reduced production and increased processing and export demands.

Analysing six key commodities, the report forecasts a 34 percent rise in paddy rice prices, linked to factors like flooding and the India rice ban.

More floods and India stopping rice imports caused prices to go up. They started at N353,000/mt and might reach N400,000/mt. By Q3 2023, they could stabilise between N480,000 and N500,000/mt, as per the report.

Highlighting food insecurity, the report underscores a significant shortage in Nigeria and warns of worsening food prices, hindering progress towards eradicating hunger by 2030.

Read also:Bread, fish prices stoke inflation to 18-year high

The report highlights Nigeria’s staggering food inflation rate, reaching an all-time high of 30.64 percent.

It pinpoints a critical 5.7 million metric tonnes shortfall in the country for both human consumption and agro-processing.

Nigeria’s Global Hunger Index remains at 109th out of 125 countries, signalling a grave food security crisis.

With soaring food prices in 2023, the report warns of worsening challenges, impeding strides towards achieving zero hunger by 2030.

During the launch event, AFEX Nigeria’s President and CEO, Akinyinka Akintunde, stressed the vital requirement for significant agricultural sector investment, focusing on bridging infrastructure, logistics, and technology gaps.