The Northern Chamber of Commerce, Industry, Mines, and Agriculture (NACCIMA) revealed that rice millers are closing their operations in Kano’s commercial metropolis due to paddy scarcity.
The chamber’s head, Dalhatu Abubakar, told journalists on Monday that paddy scarcity will lead the price of completed rice to rise.
He stated that unless sufficient action is taken to prevent food insecurity in the following weeks, the scarcity would endure as the major raw material for production is ended.
Abubakar, who is also the chair of Al-Hamsad Integrated Rice Mill, stated that numerous millers have reduced production from 24 to 12 hours per day while laying off factory personnel.
He urged the federal and state governments to intervene in the field of mechanisation to provide farmers with the necessary input to enable year-round output.
“Today hundreds of millers, both the integrated and small scale, are in a serious dilemma and finding it extremely difficult to break even. It is difficult to sustain production now because of the scarcity of paddy,” Abubakar said.
“As I speak, I know many millers that have completely closed their factories.
“Those that are yet to close, because they still have limited paddy in their reserve, cannot operate 24 hours. Like me, I have reduced my production to 12 hours because I don’t have paddy. By implication, several workers will be rendered jobless.
“Where ever you see paddy now, you buy it at an exorbitant price and you will still be compelled to face the high cost of fuel, pay tax, and electricity bill. How many factories would survive this hard economy?
“The only hard way now is, the cost of finished rice, which Nigerians will soon face.”
According to Abubakar, a major proportion of integrated rice millers in Kano are currently sourcing paddy at excessive prices of up to ₦400,000 per tonne.
