Farmer laments high cost of rice production
The Operations Manager, KITH Farms Limited, Asaba, Mr Kingsley Otali, has appealed to the Federal Government to strengthen its Anchor Borrower Programme (ABP) for rice farmers in the country.
Otali made the appeal in an interview with the News Agency of Nigeria (NAN) on Thursday in Asaba.
He expressed worry over the high cost of paddy rice production and milling in the country.
He argued that the only solution remained the ABP through the Central Bank of Nigeria (CBN).
He lauded the federal government-CBN intervention and partnership with the Rice Farmers Association of Nigeria (RIFAN) to produce paddy rice.
He, however, requested that more should be done to increase the production level to meet the country’s growing demand for rice.
Otali also said that rice millers in the country desperately desired steady power to save the cost of running their generators.
According to him, with a reliable electricity supply, rice producers and millers will produce the commodity at a reasonable cost.
He advised politicians to invest in rice farming and milling in their states.
The renowned farmer argued that with the necessary infrastructure in place, the country would meet its food need, employ the youths and enhance the rice value chain to the benefit of all.
He said that the current cost of energy, cultivation of paddy rice, transportation and labour, among other inputs, usually left rice producers with little or no profit.
“If encouragement and commitment by government and key players in the sector are sustained, the situation would change for the better.
“For instance, if in Delta, politicians establish about three mills across the three senatorial districts, plus our own mill in Asaba, the state will become self-sufficient in rice production for local consumption and export.
“Here, we engage 40 workers in our mill and produce 10 tons of rice daily and the demand is there.
“This means that with three additional mills in the state, many more people would be employed and the multiplier effect can only be imagined.
“We have many challenges in the cultivation and production of paddy rice among which is finance.
“However, the major one is power supply and the problem of sourcing the diesel to run our generators.
“We pay about N350 for a litre of diesel to power our generator and at full capacity and we use 200 litres (a drum) to produce the 10 tons of rice daily.
“We produce a bag of rice at a high cost so could hardly make N1,000 profit per bag but if we had access to regular public power, we may make more profit.
“So, as a producer, the cost of diesel and maintenance of the generator could weigh one down.
“Besides, if the farmers here could increase their production of paddy rice which is our major raw material, it would also have a positive impact on our business.
“Presently, we source our paddy rice from the North and the cheapest we spend to bring a truckload down to Asaba is about N1 million.
