Mr. Dalhatu Abubakar, the Chairman of the Northern Chamber of Commerce, Industry, Mines, and Agriculture (NACCIMA), expressed concern over the shortage of paddy rice in Kano.
Abubakar, who also serves as the chairman of Al-Hamsad Integrated Rice Mill, pointed out that this shortage could lead to a rise in the cost of processed rice.
He also explained that millers have reduced their production hours from 24 to 12, resulting in the layoffs of surplus factory workers.
What he said
He emphasized the dilemma the reduction in operations could cause:
He said:
- “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. As I speak, I know many millers that have completely closed their factories,” he said.
He pointed out further saying,
- “This is yet to close because they still have limited paddy in their reserve and cannot operate 24 hours. Like me, I have reduced my production to 12 hours because I don’t have a paddy. By implication, several workers will be rendered jobless”.
High cost of input
Abubakar also expressed concern that aside from the shortage of raw material, a significant portion of integrated rice millers in Kano are currently procuring paddy at a high cost, with prices reaching N400,000 per tonne.
- “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.”
Abubakar, therefore, called for the intervention of both federal and state governments, emphasizing the need for mechanization support and assistance to farmers with inputs to enable year-round production.