Grain prices in Gombe markets drop by about 15%, driven by a significant decline in demand for these commodities.
This price reduction is evident in major markets such as Gombe Central and Tudun Hatsi, where traders struggle with a glut of produce amid reduced customer interest. In the past two weeks, prices have notably fallen.
For example, the price of a 100kg bag of maize drops to N53,000, down from N62,000. Other grains also experience price reductions, with beans now selling for N105,000 (previously N120,000), groundnuts at N160,000 (down from N175,000), and soybeans at N82,000 (from N100,000). Rice prices also decrease, with a 100kg bag now ranging between N160,000 and N163,000, compared to earlier prices of N165,000 to N168,000. Wheat sees a significant drop, with a 100kg bag now priced at N86,000, down from N110,000.
Reasons for Price Decline
Traders attribute the price decline to a drastic drop in demand over the past two weeks. Ali Musa, the Secretary of Tudun Hatsi Grain Market, explains that the low demand is largely due to economic challenges faced by many residents in the state. He notes that the market supply now outweighs demand, partly due to a bumper harvest this season, which is expected to further lower prices.
Musa adds that the reduced purchasing power of residents, especially workers, has also contributed to the decline in demand and, consequently, the drop in prices. He predicts that prices may rise again once demand picks up in the coming months as the market adjusts to seasonal changes.
Impact of Government Initiatives
Lawan Garba, Chairman of the Wheat Farmers Association of Nigeria in Gombe, links the price decline to the government’s support programs aimed at boosting wheat production. He points out that these initiatives have led to an oversupply of wheat, causing the market to become flooded and driving prices down.
Garba calls on the state government to establish aggregation centers that can add value to agricultural commodities and help stabilize prices by creating new markets and opportunities for local farmers.
The price reductions reflect broader market trends in Gombe, where low demand and increased supply lead to notable shifts in grain prices.
Government Efforts to Boost Production
Wheat is the third most consumed grain in Nigeria, following rice and maize. Despite its high consumption, Nigeria’s wheat production falls significantly short of demand, with annual production standing at around 420,000 metric tonnes, well below the country’s annual wheat consumption of about 6.5 million metric tonnes.
To address food insecurity, the Federal Government approves a 150-day duty-free window for the importation of maize, husked brown rice, and wheat in 2024, aiming to reduce soaring food prices.
Additionally, the government targets the production of around 472,000 metric tonnes of wheat by the end of the dry season farming program, which spans 15 states. The Federal Ministry of Agriculture and Food Security also provides seeds, fertilizers, and other inputs to 2,000 farmers in Niger State under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP) to support wheat production.
