The Federal Government’s 150-day duty-free window to allow the importation of husked brown rice as part of measures to combat rising food inflation could bring down rice prices in the next two months.
This follows efforts by rice processors to key into the grace period to import paddy as Nigerians confront rising food prices including that of rice.
The Special Adviser to Lagos State Governor on Agriculture, Dr Oluwarotimi Fashola expressed optimism that the move will help reduce their cost of living.
Dr Fashola noted that the window has just opened and that importers would need to source for foreign exchange (forex) to enable them import rice paddy to supply the mills.
”Importation will improve the supply of paddy but the impact on processing volume and pricing would not be immediate,” he said.
He said the import process will take some time before the paddy arrives, processed and made available to local markets.
He explained that the process of importing paddy is extensive and involves a detailed understanding of the complex import regulations which can be time-consuming and labor-intensive.
He noted that before commencing the importation process, it is essential for the importer to be well-versed in the regulations related to paddy imports, to confirm the quality and safety of the paddy, and to establish the most favorable conditions and terms for importation.
The Chairman, All Farmers Association of Nigeria (AFAN), Lagos Chapter, Otunba Femi expects the policy to affect the price of rice in the next two months.
He said rice prices will go down soon. “Since there is no tariff to pay, it is going to impact the price of rice. It will lower rice prices and additional rice supply in the market will boost the availability of rice,” he said.
