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32 Metric Tons Imota Rice Mill to Begin Operations Soon, Says Sanwo-Olu

Lagos State Government has signed a Memorandum of Understanding (MOU) with WACOT to provide technical support for Imota Rice Mill.

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Lagos State Government has signed a Memorandum of Understanding (MOU) with WACOT to provide technical support for Imota Rice Mill.

The much anticipated Imota Rice Mill is located in the Ikorodu area of Lagos State. It has a production capacity of 32 metric tons per hour. 

In a short ceremony which was witnessed by other government officials and representatives from Wacot Rice Limited, Lagos State Governor, Babajide Sanwolu said he will hand over the rice mill in the next few months, after which it would commence commercial operation.

Investors King learnt that ‘Wacot’ will provide operational support and manage the mill for nine months in the first instance through Joint Venture. Subsequently, the partnership could be subject to renewal. 

According to Special Adviser (SA) on Agriculture to the Governor on Rice Initiative, Mr Rotimi Fashola, the need to produce quality and competitive rice for Lagosians necessitated the partnership with Wacot Rice Limited.

Additionally, Imota Rice Mill will be completed by December 2022 as stated by the special adviser.

At full operation, Imota Rice Mill will employ and empower thousands of people both directly and indirectly. Imota Rice Mill is built to produce quality rice and also influence price mechanisms.

“There is a need for the Government to put the rice mill on the path of sustainability. We need to give it to a handler that will project quality.

We sourced to have a partnership in the rice production business that has a stable brand and an eye for efficiency. This brings forth this Joint Venture and technical support agreement with WACOT”.

Meanwhile, Group Managing Director of TGI Group, Rahul Savara, said Lagos Government found a great partner in the firm. WACOT Rice Limited is a subsidiary of TGI Group.

He pledged that the company would be deploying standard technology and services in managing the rice mill. 

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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Expert Warns Against Palm Oil Adulteration, Cites Health Risks

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Amidst concerns over the quality of palm oil in Nigeria, Professor Kehinde Owolarafe of Obafemi Awolowo University, Department of Agriculture and Environmental Engineering, has sounded a clarion call, warning producers, distributors, marketers, and retailers against the perilous practice of adulteration.

At a recent workshop organized by the Standards Organisation of Nigeria (SON) in Osogbo, Osun State, Owolarafe underscored the potential health hazards posed by adulterated palm oil.

Highlighting the historical significance of Nigeria in palm oil production, Owolarafe lamented the country’s decline from a leading producer to the fifth position globally, trailing behind Indonesia and Malaysia.

Despite an increase in local production, Nigeria still imports approximately one million metric tonnes of palm oil to meet domestic demand.

Factors contributing to Nigeria’s dwindling palm oil production include aging oil palm plantations, inadequate processing technologies, and unfavorable government policies towards agriculture.

Owolarafe urged industry stakeholders to prioritize improving both the quality and quantity of palm oil production to meet international standards and revitalize the sector.

Dr. Ifeanyi Okeke, represented by SON’s Southwest Director, Ethan Talatu, emphasized the workshop’s aim to raise awareness among stakeholders regarding the importance of adhering to government-set standards.

The event sought to instill a collective commitment to producing palm oil that meets stringent quality criteria.

Amidst growing concerns over the health implications of consuming adulterated palm oil, stakeholders are urged to heed Owolarafe’s warning and prioritize quality assurance measures.

Ensuring the integrity of Nigeria’s palm oil supply chain is not only essential for public health but also crucial for revitalizing the nation’s palm oil industry on the global stage.

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Commodity Trading Industry Hits $100 Billion Profit, Second-Best Year on Record

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The global commodities market has reported $100 billion in profits despite facing challenges and disruptions, making its second-best year ever. 

According to analysis from consultancy firm Oliver Wyman LLC, while earnings have dipped slightly from the record-breaking levels of 2022, this year’s profits easily surpass previous highlights, including those seen during the global financial crisis of 2008-2009.

Consultant Adam Perkins attributes this success to favorable margins driven by ongoing supply-demand dynamics, despite the volatility seen in various sectors.

While specific financial results for many players within the industry are yet to be made public, the report indicates that major independent trading houses are expected to show an average drop of over 30% from the record levels of 2022.

However, disruptions in supply chains and shortages of diesel and fuel oil have somewhat offset the decline in volatility related to Russian crude oil.

These profits have enabled commodity trading firms to bolster their positions as key providers of energy, metals, and food resources on a global scale.

With significant investments in oil refineries, storage facilities, power plants, and acquisitions of other trading companies, these firms are solidifying their roles in shaping global supply chains.

Moreover, the windfall profits have led to executives and partners within these firms becoming multi-millionaires, facilitating a generational shift in leadership as seasoned traders retire.

Despite the pressure to uphold legacies and navigate increased scrutiny, the influx of new leadership presents opportunities for innovation and growth within the commodity trading sector.

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