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‘60% Duty on Imported Rice’ll Boost Local Production’

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  • ‘60% Duty on Imported Rice’ll Boost Local Production’

The All Farmers Association of Nigeria has said that the 60 per cent import duty on imported rice will promote local rice and make it more competitive.

The President of the association, Mr. Kabiru Ibrahim, who spoke with SUNDAY PUNCH, said a combination of high exchange rate and high import tariffs on agricultural products, including rice would make Nigeria to attain self-sufficiency in food production.

According to him, this will reduce the activities of importers as importation will no longer be profitable.

He said, “In fact, it will reduce the importation of rice. It will become very costly and it will be difficult to compete with the local rice. Besides, buying it in dollars and having to pay a higher tariff will make it less attractive to the people because it won’t be profitable.”

The Federal Government had increased the tariff on imported luxury items as well as food commodities with the duty on rice rising from 10 per cent to 60 per cent.

Other commodities affected are sugar cane and salt from 10 per cent to 70 per cent; alcoholic spirit, beverages and tobacco from 20 per cent to 60 per cent.

Meanwhile, due to the shortfall in the supply of paddy rice to meet the huge demand for processed rice in the festive season, some rice millers had urged the government to give them import licences to enable them to bring unprocessed brown rice into the country.

The Personnel Manager, Umza International Farms Limited, an indigenous rice mill, Mr. Ali Aliyu, explained that one of the reasons for the increase in local rice from N14,000 to N16,000 per 50 keg bag was the insufficiency of paddy to meet consumers’ demand.

He said, “The paddy rice is not sufficient for the millers and we wanted about 800,000 tonnes of paddy rice in 2016 and up until now, we have not got up to 40,000 tonnes.”

But Ibrahim said, “We will not support the importation of brown rice; let them be patient because there will be enough paddy rice. So many people are now engaged in the production of paddy rice. The CBN anchor programme is taking shape and it has recently been launched in Kaduna State.

“In many states, paddy will be available and the millers should try to be part of the anchor programme because they are the users and the farmers are their suppliers. Nobody should give them any licence because it will negate the purpose of the programme.”

President Muhammadu Buhari inaugurated the CBN anchor programme aimed at creating economic linkage between over 600,000 smallholder farmers and large-scale food processors.

The Governor of the CBN, Mr. Godwin Emefiele, had said the initiative would increase agricultural output and significantly improve capacity utilisation of integrated mills.

He also noted that it would close the gap between the level of local rice production and domestic consumption.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Crude Oil Pulled Back Despite Joe Biden Stimulus

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Crude Oil Pulled Back Despite Joe Biden Stimulus

Crude oil pulled back on Friday despite the $1.9 trillion stimulus package announced by U.S President-elect, Joe Biden.

Brent crude oil, against which Nigeria’s oil is priced, pulled back from $57.38 per barrel on Wednesday to $55.52 per barrel on Friday in spite of the huge stimulus package announced on Thursday.

On Thursday, OPEC, in its latest outlook for the year, said uncertainties remain high in 2021 with the number of COVID-19 new cases on the rise.

OPEC said, “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.”

Governments across Europe have announced tighter and longer coronavirus lockdowns, with vaccinations not expected to have a significant impact for the next few months.

The complex remains in pause mode, a development that should not be surprising given the magnitude of the oil price gains that have been developing for some 2-1/2 months,” Jim Ritterbusch, president of Ritterbusch and Associates, said.

Still, OPEC left its crude oil projections unchanged for the year. The oil cartel expected global oil demand to increase by 5.9 million barrels per day year on year to an average of 95.9 million per day in 2020.

But also OPEC expects a recent rally and stimulus to boost U.S. Shale crude oil production in the year, a projection Investors King experts expect to hurt OPEC strategy in 2021.

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Crude Oil

OPEC Says Uncertainties Remain High in 2021

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OPEC Says Uncertainties Remain High in 2021

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday said global uncertainties remained high going forward in 2021 but kept its oil demand forecast unchanged.

In the cartel’s latest oil outlook for 2021, oil demand is expected to increase by 5.9 million barrels per day year on year to 95.9 million barrels per day. The prediction was unchanged from December’s assessment.

However, OPEC and allies, said: “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.

Crude oil rose to $57 per barrel this week after incoming US President Joe Biden announced it would inject $1.9 trillion stimulus into the world’s largest economy.

But the recent rally in the commodity and stimulus announcement is expected to boost US crude oil output and disrupt OPEC+ production cuts strategy for the year.

The 2021 supply outlook is now slightly more optimistic for U.S. shale with oil prices increasing, and output is expected to recover more in the second half of 2021,” OPEC said.

Still, OPEC, in its forecast “assumes a healthy recovery in economic activities including industrial production, an improving labour market and higher vehicle sales than in 2020.”

“Accordingly, oil demand is anticipated to rise steadily this year supported primarily by transportation and industrial fuels,” the group said.

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Crude Oil

Brent Crude Oil Rose to $56.25 Per Barrel

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Brent Crude Oil Rose to $56.25 Per Barrel

Oil price surged following the declaration of Joe Biden as the President-elect of the United States of America last week after Trump’s mob invaded Capitol to disrupt a joint Senate session.

Also, the large drop in US crude inventories helped support crude oil price to over 11 months despite the second wave of COVID-19 crushing the world from Asia to Europe to America.

Brent crude oil, against which Nigerian Crude oil is priced, rose to $56.25 per barrel on Friday before pulling back to $55.422 per barrel on Monday during the London trading session.

Experts attributed the pullback to the rising number of COVID-19 cases in Asia with about 11 million people already locked down in Hebei province in China.

Covid hot spots flaring again in Asia, with 11 million people (in) lockdowns in China Hebei province… along with a touch of FED policy uncertainty has triggered some profit taking out of the gates this morning,” Stephen Innes, chief global market strategist at Axi, said in a note on Monday.

China, the world’s largest importer of crude oil, has joined the United Kingdom and others declaring full or partial lockdown to curb the second wave of COVID-19.

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