Miller Magazine Issue: 140 August 2021

82 Country Profile MILLER / august 2021 RICE PRODUCTION Rice is another staple food in Nigeria consumed by most households daily. It is the second most-pro- duced grain in the country. It can be grown anywhere in the country. The crop grows well both in upland and lowland regions. In recent years, the government and several state governments have promoted increased rice production. MY 2021/22 rice rough production is projected at 9 MMT, a 20 percent increase compared to the previous year. Nigerian farmers are increasing- ly moving from singular seasonal rice farming to mul- tiple seasons. Dry season farming thrives better than wet season because production variables can easily be controlled unlike wet season where flood or pro- tracted drought can wreak havoc on production. The prospects of multiple cropping rice seasons are con- tributing to increased national production. MY2021/22 area harvested is forecast to increase by 17 percent to 3.8 million hectares compared to 3.25 million hectares recorded the previous years by USDA. The major drivers include the presence of me- dium-to-large scale and financially stable integrated rice farming/milling operations in the private sector that continue to support many rice farmers with funds and inputs under out-grower arrangements. Amid increasing production costs and lowering demand, out-grower programs provide opportunities for small- holder farmers. Attractive prices of Nigerian rice in the Sahel region are spurring Nigerian rice farmers and millers to increase production for informal exports to neighboring countries. MY 2021/22 rice consumption is projected to reach 6.6 million metric tons. Market sources indicate that the drop in consumption would largely originate from increasing prices amid lowering consumer purchasing power, job losses, and declining household incomes. These fac- tors are already causing more Nigerian households to reduce their rice consumption and shift to foods that are more affordable such as millet, sorghum, yam, cassava, plantain, and other less expensive staples grown within their communities. USDA projects MY2021/22 imports to reach 2 million metric tons. Nigerian rice consumers prefer parboiled long grain rice from Thailand and India, which continues to enter the Nigerian market through grey channels (un- official routes) and are freely sold in the dominant tra- ditional open-air markets and street/corner shops. The recent hike in electricity tariff and petrol (gasoline), both required to run production plants and facilities, are ex- pected to increase milling costs and hike local rice pric- es even beyond the prices of imported parboiled rice. Imported rice faces a 10 percent duty and an additional 60 percent levy totaling 70 percent tariff. The govern- ment indicates that rice is not banned for imports. How- ever, importers are prohibited to ship rice to any Nigerian port irrespective of the source of foreign exchange. This translates to a technical ban. REFERENCES: www.fas.usda.gov www.trade.gov www.fao.org/home/en