Business
Miller Ties High Price Of Rice To Flood
The Chairman, Abakaliki Rice Mill Owners Industrial Association, Mr Joseph Ununu, on Saturday in Abakaliki, said the price of rice had risen in Ebonyi as a result of the flood.
Ununu told newsmen that price of rice would continue to rise as a result of the flood that ravaged most rice farms in the state.
He described the effect of the flood disaster as terrible; saying that majority of rice farmers in the state had their rice farms completely washed away by the flood.
He said that a bushel of rice which was sold for as low as N2, 000 in November 2011 and the highest quality sold for between N2, 500 and N3, 000. now sells between N3, 600 and N4, 000, depending on the variety.
Ununu said that the low quality ones were now selling for between N2, 800 and N3, 400.
He said that the best improved varieties known as “fero44’’, “fero52’’ and “fero57’’ long grain rice was now selling for N4, 500.
“We have never experienced this type of situation where the price of rice is so high in the month of November.
“November is usually a peak period in rice harvesting and sales but the reverse is the case in 2012 because of the flood.
“The rice mill complex this period is usually filled to capacity with buyers and sellers of the commodity but you can see there are only a handful of them,’’ he said.
The chairman maintained that there would be shortage in the supply of the commodity in view of the destruction caused by flooding which ultimately would lead to more increase in the price of rice.
Some farmers – Elias Nwogu, Samuel Ogodo, Albert Onwe, John Ugbala, Pius Nwauruku and Sunday Eje decried the rising cost of the commodity which they blamed on low production.
“It has never been this bad before that a bushel of rice will sell above N3, 000 in November; it is indeed affecting business,’’ Nwogu said.
“ Most traders could not afford to buy the product at prevailing market price,’’ Ogodo said.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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