Major exporters of rice around the world have stopped supplies to Nigeria, in anticipation of global shortage of the commodity.
This is may precipitate a serious food shortage in the country.
But in response to the looming crisis, the Federal Government is to spend about N80 billion for the immediate importation of 500,000 metric tonnes of rice from Thailand and other parts of the world within the next five months.
However, the landing cost of the rice may drop to N40 billion if the government waives the 100 percent duty payable on imported rice. The government has also set aside 1.68 percent of the natural resources fund for agricultural research and the development of the agricultural sector over the next four years.
Available data show that in the last one month, only two ships brought rice at the Lagos ports, which serve as the key entry point for the consignment.
Also, the shipping position released by the Nigerian Ports Authority (NPA) revealed that out of 76 ships billed to discharge at Lagos ports, none will be bringing in rice in the next three weeks.
The quantity of rice coming into the country has gone down drastically since the beginning of the year, resulting in the scarcity of the product in the markets.
Already, the price has gone up to N12,200 a bag from the N5,500 it was sold in the market last December.
The decreasing quantity of rice at the ports has been compounded by the high tariff placed on the commodity by the Federal Government.
Due to the 100 percent duty on the commodity, most importers no longer bring in the consignment through the seaports. They prefer to smuggle through various unapproved routes.
Amidst the growing difficulty in sourcing rice in the international market, government did not give details of how it can source the massive consignment it hopes to import.
The decision to import the rice in large quantity was taken in a special session between President Umaru Yar�Adua, state governors, Michael Aondoakaa, attorney general and minister of justice, Sayyadi Abba Ruma, minister of agriculture and water resources, and Shamsudeen Usman, minister of finance who was represented by Remi Babalola, minister of state for finance.
Briefing State House correspondents after the meeting at the presidential villa, Abuja, Olusegu Agagu, governor of Ondo State, accompanied by Ibrahim Shekarau, governor of Kano State and Godswill Akpabio, governor of Akwa Ibom, and Ruma, said the move by the government is to address the increasing price of rice and also to guaranty enough supply of the commodity in the country.
�To save the situation and further ameliorate our condition, government will import 500,000 metric tonnes of rice immediately in addition to what is available at home now and in addition to what we are producing at home because we all know that there are several states in the country that are rice growing in the country. We will encourage our people who are rice growing to grow more. The rains are here and rice takes about two to three months to mature, our people will be encouraged to grow more,� he said.
�But because we already envisage some short fall in supply, we therefore took a decision to import 500,000 metric tonnes of rice to be sold to our people at subsidised rates. These two measures are for the immediate term to dampen the escalating price in the markets and make food available to our people.�
Besides the importation of the 500,000 metric tonnes of rice, the governor said government is also expected to release additional 11,000 metric tonnes of grain from the nation�s strategic reserve to create more availability to the consumers.
For the medium term, the governor said �a very drastic decision was taken that the Federal Government through the ministry of agriculture and water resources with the states and research institutes are to ensure that in the medium to long term, Nigeria will not produce only enough food for her people but should be in a position to export to other country.�
The respective states, he disclosed, �have been challenged to increase their budgetary allocation for agriculture substantially over the next four years. The contribution from the Federal Government in addition to the contributions from the states should definitely have very positive impact on our food production capabilities and food security will be addressed permanently.�