In a recent development in Katsina State’s local markets, paddy rice buyers have shifted their pricing strategy to a per-kilogram basis, according to a report by Daily Trust.
This significant shift comes as farmers in the region have been reaping substantial profits from their harvest. Over the past two years, paddy rice was traditionally sold by the bag rather than by weight.
However, the prevalence of dishonest practices, where some farmers failed to clean and sieve their produce properly, artificially inflating its quantity and maximizing profits, compelled buyers to adopt a kilogram-based pricing system.
Bashir Mamman, a seasoned rice farmer from Kafur Local Government Area, shed light on the challenges faced by farmers in the region. He pointed out that the rising costs of fertilizers and the inherent uncertainties associated with rice production had driven many farmers to diversify their crops, opting for sorghum and soybean to reduce production costs.
Mamman remarked, “Rice production has not been as robust as last year, and the persistently high cost of living has placed significant pressure on its demand, causing prices to surge from N15,000 per bag last year to the current range of N25,000 to N30,000 per bag, depending on the quality and variety. To boost yields and maximize profits, many farmers have refrained from properly cleaning their produce from the fields, a practice that has prompted buyers to rely on kilogram measurements to accurately determine the actual weight of the rice.”
Mamman emphasized that, in the best-case scenario, a bag of paddy rice would weigh approximately 81 kilograms, with a per-kilogram price of N360. He further explained, “As you are aware, paddy rice comes in various varieties, each with differing weights.
If a bag of a specific variety weighs 70 kilograms, it would be priced at N25,200, and if it reaches the maximum weight of 81 kilograms, it would command a price of N29,160. Anything less than 70 kilograms would be deemed of poor quality.”
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Earlier this year, rice industry analysts had forewarned of a substantial global rice shortage, marking the most significant deficit in supply and demand the industry has seen in two decades.
This shortage was attributed to reduced production and ongoing global disruptions, such as the Russia/Ukraine conflict and India’s export restrictions, which have kept rice prices high since the onset of the COVID-19 pandemic.
Yunusa Na Garba, a rice farmer and purchasing agent for processing companies, emphasized that local farmers in Katsina State were primarily influenced by factors related to production rather than statistical global projections.
Garba stated, “Farmers in our region are primarily concerned with securing access to improved rice seeds and being able to afford essential agricultural chemicals and fertilizers for cultivation. Most of us did not initially realize the potential for substantial profits in rice production over the next two decades, as indicated by global analysis.”
Garba further highlighted the potential for rice scarcity in the coming months due to a prolonged period of inadequate rainfall experienced last month, mainly as rice crops require sufficient moisture during seed formation.
During a visit to Funtua and Dandume markets, Daily Trust observed that despite the current surge in rice harvests, the price of stable rice remained prohibitively high for the average consumer. A unit (tiya) of locally refined rice was priced at N2,000, while a 100-kilogram bag commanded a staggering N76,000.
This shift to per-kilogram pricing in Katsina State reflects the ongoing challenges and dynamics faced by both farmers and consumers in the local rice market as they navigate economic pressures and global market forces.
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