Increase in Supply Crashes Price of Paddy Rice by 16.9%

Image

By Ashemiriogwa Emmanuel

The price of paddy rice in the open market declined week-on-week by 16.9 per cent to N17,573 last week from N21,161 per contract of the preceding week.

Data on the AFEX showed that the drop in the price of the product was as a result of an increase in the supply end due to new harvest.

Similarly, the exchange-traded price of the commodity dropped by 5.15 per cent to N22,000 in the period under review from N23,195 recorded in the previous week.

Being an increasingly important crop in Nigeria and a major staple in many parts of the world, rice is a relatively easy crop to produce and is grown mainly for sale to processors.

The commodity is grown in paddies or on upland fields, depending on the requirements of the variety as some are being considered traditional varieties and other foreign varieties being introduced across the country over the years.

The same story played out for maize as the cost of the grain dropped by 5.2 per cent to N22,518 per contract in the open market from the previous N23,764.

AFEX, in the weekly report, projected that the prices of grain commodities in the open market will maintain a slow but downward trend towards the full harvest period. This will be a result of trends seen with the downward movement of food inflation in the country.

According to the National Bureau of Statistics (NBS), food inflation slowed by 0.86 per cent month-on-month in July, hitting the lowest point since February 2019. This is reflective of the current price declines recorded in the open market as harvest season nears.

This, of course, will be due to the supply of new commodities, especially maize, into the market.

The agribusiness firm said its total contracts reduced by 65.35 per cent week-on-week as there were 2,216 executed trades compared to the 6,395 successful trades at the preceding week.

The AFEX Commodities Index (ACI) declined by 0.6 per cent against a flat performance witnessed on the AFEX Export Index (AEI) for the second consecutive week.

Also, the Standard & Poor’s Goldman Sachs Commodity Index (S&P GSCI) Agriculture declined by 2.1 per cent week-on-week.

Season-to-Date, the ACI outperformed the S&P GSCI Agriculture Index. However, the AEI underperformed when compared to both indexes.

Share
Related Stories
Image
21-February-2024

FG Completes $70m Yearly Concessionaire of Zungeru Plant to Penstock

By Adedapo Adesanya The federal government has completed the transfer of the operations of the Zungeru Hydroelectric Power Plant (ZHPP) to a concessionaire, Penstock Limited, in a move that will see the country earn $70 million yearly from the deal. The Vice President, Mr Kashim Shettima, confirmed this during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. A concession is a kind of partnership between the public sector and often private companies that have shown its added value in a specific area, for example developing infrastructure. The

Image
21-February-2024

Naira Gains at NAFEX as Govt Tries Unorthodox Means to Stabilise FX Market

By Adedapo Adesanya The Naira appreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, February 20 as the government and the Central Bank of Nigeria (CBN) applied unorthodox measures to arrest the free fall of the local currency. In the official market yesterday, the Nigerian Naira gained 2.9 per cent or N47.3 on the Dollar to close at N1,551.24/$1, in contrast to the previous day’s N1,598.54/$1. However, the domestic currency lost N92.60 against the British Pound Sterling during the session to quote at N2,023.64/£1 compared with the preceding day’s N1,931.04/£1 and against the

Image
20-February-2024

Nigeria Creates Task Force to Combat FX Speculation, Hoarding

By Adedapo Adesanya Nigeria has formed a joint task force, made up of leading law enforcement agencies such as the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service (NCS), and the Nigeria Financial Intelligence Unit (NFIU), to combat foreign exchange (FX) speculation and tackle the issues affecting the country’s economic stability. The National Security Adviser’s Office, led by Mr Nuhu Ribadu, in collaboration with the Central Bank of Nigeria (CBN), initiated the joint effort. In a statement on Tuesday, a spokesperson for the NSA office, Mr Zakari Mijinyawa, disclosed that the partnership is

More Stories
Image
23-May-2023

Google Adds More Countries to Flood Hub Platform, Offers 7-Day Forecasts

By Aduragbemi Omiyale More countries have been added to the Google Flood Hub platform to address the devastating impacts of floods and provide critical support to vulnerable communities through Artificial Intelligence. Floods claim tens of thousands of lives and cause billions of dollars in damages each year across the world. Their impacts are particularly severe in low-resource regions that often lack effective early warning systems. By equipping governments, aid organisations, and individuals with advanced flood forecasting tools, Flood Hub empowers communities to take proactive measures and make informed decisions to reduce the devastating effects of floods. To further enhance flood

Image
16-April-2021

DPR Denies Secrecy in Crude Oil Production Volume

By Adedapo Adesanya The Department of Petroleum Resources (DPR) has debunked claims that the exact volume of crude oil produced in Nigeria is not known. There have been widespread media reports that the exact volume of the black gold cannot be quantified. But on Friday, Mr Paul Osu, the Head of Public Affairs at the DPR, in a statement issued in Lagos, said every litre of crude produced in the country was adequately captured during the process of extraction. Mr Osu said it was the responsibility of the DPR to monitor and account for crude oil production as the basis

Image
20-March-2017

Choppy Trading May Persist Ahead of G20 Meeting

By Modupe Gbadeyanka The major U.S. index futures are pointing to a modestly lower opening on Monday following the lackluster performance seen last Friday. Disappointment with the outcome of the G20 meeting may weigh on the markets, as finance ministers failed to agree on a commitment to keep global trade free and open. The token reference to trade in the G20 communiqué was seen as a reflection of President Donald Trump’s more protectionist policies. Any early selling pressure is likely to be relatively subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.

Image
09-August-2021

NDLEA Intercepts Skunk Meant for Edo Students, Others

By Adedapo Adesanya The National Drug Law Enforcement Agency (NDLEA) arrested no fewer than 15 drug dealers during a week-long raid by its operatives across seven states in Nigeria. The exercise, which began on Sunday, August 1, and lasted till Saturday, August 7, led to the recovery of a total of 8,268.2311 kilogrammes of assorted illicit drugs. The illicit drugs, including cocaine, heroin, tramadol, methamphetamine and skunk, were recovered in Ondo, Akwa Ibom, Adamawa, Enugu, Bauchi, Edo, and Anambra States. The raid, aimed at mopping up illicit drugs in the affected states, is part of effective actions ordered by the

Image
23-September-2018

UNIDO Organises Forum on Implementation of AfCFTA

By Modupe Gbadeyanka Recently, some African countries agreed to be part of African Continental Free Trade Area (AfCFTA), but Nigeria, the continent’s largest economy, declined, raising some issues concerning the initiative meant to make Africa economically viable. As world leaders prepare for the 73rd Session of the United Nations General Assembly in New York this week, the United Nations Industrial Development Organization (UNIDO) is organising an event on the sidelines of the 73rd UNGA to address AfCFTA. A statement issued by the organisation said to further foster the implementation of the Third Industrial Development Decade for Africa (IDDA III), the

Image
26-September-2017

Ogunbanjo Replaces Aig-Imoukhuede as NSE President

By Dipo Olowookere Mr Abimbola Ogunbanjo has been elected as the new President of the Nigerian Stock Exchange (NSE) National Council. His election took place at the NSE’s 56th Annual General Meeting (AGM) held on Monday, September 25, 2017, at the NSE Event Centre, Lagos. Mr Ogunbajo, with this development, replaces President of the National Council of the NSE, Mr Aigboje Aig-Imoukhuede, after three years in office. Also elected at the AGM was Mrs Catherine Nwakaego Echeozo, who is now the Vice President of the council. A statement issued by the NSE on Monday disclosed that during the meeting, members

Image
01-September-2021

FG Disburses N56.8bn Survival Fund to One Million Nigerians

By Ashemiriogwa Emmanuel The federal government has disbursed N56.8 billion to over a million persons and businesses in Nigeria, including those registered under the Corporate Affairs Commission (CAC) under the survival fund scheme. This was disclosed by the Minister of State, Industry, Trade and Investment, Mrs Maryam Katagum, while speaking at a news conference held yesterday in Abuja. The Minister, who is also the chairperson of the survival fund steering committee, said that, “To date, we have successfully disbursed the sum of N56,842,780,000 to 1,079,323, including those registered under CAC. “The federal government is set to roll out the last

Image
04-July-2023

Oil Prices Drop Despite Fresh Supply Cuts

By Adedapo Adesanya Oil prices went down by 1 per cent on Monday as worries about a slowing global economy and possible interest-rate hikes in the United States outweighed supply cuts. Brent crude futures depleted by 1 per cent or 76 cents to $74.65 a barrel, and the US West Texas Intermediate (WTI) crude futures shrank by 1.2 per cent or 85 cents to $69.79 per barrel. Earlier in the session, the market was up after Saudi Arabia on Monday said it would extend its voluntary cut of one million barrels per day for another month to include August, while

Ad
Ad
Recent Stories
Image
21-February-2024

Tinubu Appoints Kemi Nanna Nandap as Comptroller-General of Immigration

By Modupe Gbadeyanka The Deputy Comptroller-General (DCG) of the Nigeria Immigration Service (NIS), Ms Kemi Nanna Nandap, has been elevated to the post of the Comptroller-General of the agency. This followed her appointment by President Bola Tinubu, according to a statement issued by his spokesman, Mr Ajuri Ngelale, on Wednesday. The presidential aide disclosed in the statement today that the appointment of Ms Nandap will take effect from Friday, March 1, 2024. She is taking over from Mrs Caroline Wura-Ola Adepoju, whose term in office expires on February 29, 2024, the disclosure said. “President Bola Tinubu has approved the appointment

Image
21-February-2024

AFC to Pump $40m Into African Medical Centre of Excellence Abuja

By Adedapo Adesanya  African instrumental infrastructure solutions provider, Africa Finance Corporation (AFC), has signed an equity investment term sheet, pledging up to $40 million towards the construction of an Abuja-based hospital, the African Medical Centre of Excellence (AMCE). The quaternary-level multi-specialty medical institution developed by the African Export-Import Bank (Afreximbank) in collaboration with King’s College Hospital, London, aims to revolutionise healthcare in Africa. Hospitals across West Africa struggle with funding, lack of essential resources, and limited access in rural areas. This flagship facility in Abuja is a key part of Afreximbank’s network of healthcare facilities, actively countering brain drain, reducing

Image
21-February-2024

Oyo Reopens Shri-Balaji After Closure Over Pollution

By Aduragbemi Omiyale The industrial company sealed earlier this month nonconformity and adherence to environmental laws of Oyo State, Shri-Balaji Industries Limited, has been reopened. The facility was unsealed on Wednesday on the directive of the Commissioner for Environment and Natural Resource, Mr Abdulmojeed Mogbonjubola. The company, which engages in the recycling of waste tyres to produce Pyrolysis oil and carbon black and steel wire as by-products, was closed by the state government to protect the lives of residents of the area. A statement made available to Business Post disclosed that for it to be reopened, Shri-Balaji paid a fine

Image
21-February-2024

FG to Restructure, Recapitalise Bank of Agriculture for Better Value

By Adedapo Adesanya The federal government has revealed plans to recapitalise and restructure the Bank of Agriculture (BOA) to bolster Nigeria’s agricultural sector and achieve national food security. This was one of the core revelations made by the Vice President, Mr Kashim Shettima, during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. He said there is a central role that BOA could play in achieving national food security, citing its extensive branch network across all senatorial districts in the country. Mr Shettima, however, expressed concern about the

Image
21-February-2024

Foundation Urges Nigerians to Adopt Waste Management Hierarchy

By Aduragbemi Omiyale A recycling organisation, Turn Plastic Recycling Foundation, has encouraged Nigerians to embrace the waste management hierarchy to make the country a zero-waste society. The Project Manager for the firm, Mr Leo Nwofa, while giving a summary of the project journey in the past two years of the foundation, said to save the planet, people must adopt the system of proper waste disposal for recycling after use. The waste management hierarchy gives top priority to waste prevention, followed by reuse, recycling, recovery and finally disposal. Speaking at an event to mark the second anniversary of Turn Plastic Recycling

Image
21-February-2024

Peter Obi Fumes as CBN Hikes Cargo Clearing Rate to N1,605/$1

By Adedapo Adesanya The Central Bank of Nigeria (CBN) has once again increased the exchange rate for customs cargo clearance by 9 per cent or N133.06 from N1,472.76/$1 to N1,605.82/$1. The new rate, which has already been reflected on the Nigeria Customs Service (NCS) portal, will further dampen the hope of importers, and trigger an increase in the price of imported products like food, fuel, spare parts, and phones, among others. The CBN had recently reduced the exchange rate from N1,515.48/$1 to N1,472.756/$1 after the market eased following some recent policy steps. This review will be the 12th since the

Image
21-February-2024

Panic at Black Market as EFCC Intensifies Clampdown on BDCs

By Dipo Olowookere There is apprehension at the black market segment of the foreign exchange (FX) market in Lagos and other cities across the country as security officials, especially from the Economic and Financial Crimes Commission (EFCC), are going after traders at the landscape. Recall that on Monday, some agents of the organisation disrupted business activities in Abuja, and on Tuesday, a similar scenario occurred at the popular Alade Market in Lagos. On Wednesday, Business Post gathered that more places were touched, with two of the Bureaux De Change (BDC) operators allegedly picked up by security operatives in the Agege

Image
21-February-2024

VFD Group Donates Books to Comenius Nursery and Primary School

By Modupe Gbadeyanka About 1,000 copies of Mama’s Sleeping Scarf by renowned Nigerian writer, Ms Chimamanda Ngozi Adichie, have been donated to the pupils of Comenius Nursery and Primary School in the Ikola area of Lagos State. The educational items were given to the elementary school by a leading proprietary investment company, VFD Group Plc, as part of its Corporate Social Responsibility (CSR) initiative. The firm, which is committed to fostering growth across diverse industries in Africa, said the books were donated to promote reading culture among children and inspire young minds to explore limitless possibilities. Mama’s Sleeping Scarf is

Image
21-February-2024

DSS Warns Organised Labour To Shun Planned Protest

By Adedapo Adesanya The Department of State Services (DSS) has urged Nigerians planning to protest next week led by organised labour to halt the idea. According to a statement from the spokesperson of the Nigerian secret police on Wednesday, Mr Peter Afunanya, there were plans by sections of the organised labour to stage protests in parts of the country over sundry economic issues between February 27 and 28, 2024 “While the Service recognises such action as the legitimate right of the labour movement, it, however, urges the body to shelve the plan in the interest of peace and public order,”

Image
21-February-2024

FG Completes $70m Yearly Concessionaire of Zungeru Plant to Penstock

By Adedapo Adesanya The federal government has completed the transfer of the operations of the Zungeru Hydroelectric Power Plant (ZHPP) to a concessionaire, Penstock Limited, in a move that will see the country earn $70 million yearly from the deal. The Vice President, Mr Kashim Shettima, confirmed this during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. A concession is a kind of partnership between the public sector and often private companies that have shown its added value in a specific area, for example developing infrastructure. The