Rice millers in Gombe State have attributed the escalating price of rice to the shortage of paddy available for processing, which they attribute to hoarding by certain merchants. Paddy serves as a crucial raw material in rice processing, and according to reports from the News Agency of Nigeria (NAN), millers in Gombe expressed frustration over the current situation.
They highlighted the pressure on the limited paddy available, citing the activities of middlemen who allegedly purchased and stockpiled paddy in warehouses instead of releasing it to the market. Auwal Manu, the production manager at Lula Rice, pointed out that the price of rice has nearly doubled in the past three weeks due to the scarcity of Paddy brand rice.
Manu emphasized the scarcity of paddy and the significant pressure on the limited supply, attributing it to middlemen who acquired paddy during the 2023 harvest and withheld it from the market. Consequently, this has resulted in a surge in the price of rice, as those holding onto paddy now dictate the selling price of their commodity.
Price of rice
The shortage of paddy has severely impacted production in rice processing ventures like Lula Rice, with the cost of paddy skyrocketing to around N50,000 per bag, making it economically unviable for businesses. Previously, a bag of paddy was sold for between N15,000 and N20,000, but the current price exceeds N47,000.
As a result of the scarcity and high cost of paddy, rice millers have been forced to suspend production, leading to significant disruptions in the rice processing industry in Gombe State.
