Prices of various grains have dropped by about 15% in Gombe markets, driven by a low demand for the produce.
The price reduction was observed in major markets, including Gombe Central and Tudun Hatsi, where traders are struggling with a market glut due to reduced patronage.
The News Agency of Nigeria reported that prices have significantly decreased in the past two weeks.
For instance, a 100kg bag of maize now costs N53,000, down from its previous price of N62,000.
Other grains also saw price reductions, with beans selling for N105,000 (previously N120,000), groundnut at N160,000 (down from N175,000), and soybeans at N82,000 (from N100,000).
Rice prices also showed a decrease, with a 100kg bag now ranging between N160,000 and N163,000, compared to the previous prices of N165,000 and N168,000.
Wheat prices saw a notable drop, with a 100kg bag now selling for N86,000, down from its former price of N110,000.
Causes of price decline
Traders attributed the price drop to a drastic decline in demand for grains over the last two weeks. Ali Musa, the Secretary of Tudun Hatsi Grain Market, explained that the low patronage was largely due to the economic difficulties faced by many residents in the state.
“The supply outweighs the demand in view of the bumper harvest recorded this cropping season. This will push prices further down,” Musa said.
He further added that the reduced purchasing power of residents, particularly workers, contributed to the low demand and, consequently, the drop in prices.
Musa also suggested that prices would likely rise again once demand picks up in the coming months, as the market adjusts to seasonal changes.
Impact of government initiatives
Lawan Garba, the Chairman of the Wheat Farmers Association of Nigeria in Gombe, provided insight into the role of government initiatives in the market trend.
- He explained that the Federal Government’s support programs aimed at boosting wheat cultivation have led to an oversupply of the commodity.
“The commodity flooded the market resulting in a drop in prices,” Garba noted.
- He urged the state government to establish aggregation centers that would add value to the agricultural commodities and create new markets, which could help stabilize prices and create more opportunities for local farmers.
The price reductions reflect broader market trends, with low demand and increased supply leading to significant shifts in the cost of essential grains in Gombe State.
What you should know
Wheat is the third most consumed grain in Nigeria after rice and corn. The United States Foreign Agricultural Service projects the country’s wheat consumption to reach 6.06 million tonnes.
- Wheat is mainly cultivated in Northern Nigeria in around 13 states. Data from the Ministry of Agriculture puts the production volume of wheat at 420,000 metric tonnes far below the annual consumption of around 6.5 metric tonnes
- As part of efforts to combat food insecurity, the federal government earlier in 2024 approved a 150-day duty-free window to allow the importation of maize, husked brown rice, and wheat. This decision was informed by the need to bring down the cost of food items which have hit the roof, making life unbearable for Nigerians.
- The Federal Government’s target for the dry season wheat farming program is to achieve around 472,000 metric tonnes of wheat by the end of the season, with an average yield of four metric tonnes per hectare. This ambitious goal is set to be achieved across 15 states.
Additionally, the Federal Ministry of Agriculture and Food Security has distributed seeds, fertilizers, and other inputs to 2,000 farmers in Niger state under the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP) to enhance wheat production through mechanized farming methods.
