FG Raises Benchmark On Imported Rice

Federal Government has raised the benchmark for determining the duty playable on the price of imported bulk rice by seven per cent, signaling an increase in the price of the staple food.
The price benechmark of rice, sources said which was reduced from N100,401 ($683) per metric from April to June this year went up again to N86,730 ($590) per ton in July.
Last year, federal government suspended the collection of 50 per cent duty and 50 per cent levy on rice from April to December to encourage its importation due to the sudden steep rise in price of the food item.
But with improvement on the anticipated food crisis last year, government lifted the suspension on duty and levy payable for rice in January this year, but however pegged the duty at 10 per cent and 20 per cent for the levy.
Government nevertheless maintained the usual benchmark of N683 per metric ton of the food item until March this year when it was reduced to $550 per ton.
Last month, government came up with a new policy that said the increase on benchmark of rice to $590 per ton. The now benchmark, government said is expected to last from July to September this year, as it keeps a closer tab on the volume of the commodity that comes into the country.
Sources at the Nigeria Customs Service (NCS) said government decided to increase the benchmark duty payable by importers as a supplement to generate more revenue due to the dwindling volume of containerised goods come into the country.
According to the source, bulk cargoes have become the major source of revenue since October 2008 when the country suffered some set back as a result of Port congestion and the global meltdown that led to the reduction in expected revenue for the first quarter of the year from N166 billion to N89 billion.