Fuel Hike Hits Agric Value Chain

Chief Executive, Niji Group, Kolawole Adeniji  has said diesel price increase is hitting  the agriculture sector hard, and that fuel price increase is having a negative impact on agricultural production.
Farmers’ input costs, according to him, are skyrocketing, while fertiliser, pesticides, and herbicides,  have  seen staggering increases.
Expressing concern that this would impede  farmers’ ability to produce more food, he  said the diesel price increase came on the back of a sharp increase in other input costs.
He reiterated that diesel proce hike  has increased agricultural input costs, saying farmers are paying more for fuel.
According to him, consumers would be negatively affected, with the price increases set to drive up food inflation due to the additional transport costs, as well as adding additional strain on consumer spending due to increased personal transport costs.
President, Association of Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche, called on the government to intervene on the diesel price hikes to save jobs.
He said if nothing was done to help the industry, Nigeria  must brace for more job losses.
He noted that  diesel  price increase is putting pressure  on the entire small and medium scale business value chain and could lead to increased job losses.
According to him, profit margins were gradually shrinking, and it would be difficult for them to continue to absorb costs in the medium term if the situation does not improve.
“A lot of entrepreneurs are on life support. Don’t be surprised if we start buying a sachet of water for N20″, he said.
A  printer, Pastor Badebo Solomon, said the situation is grievous. According to him, “ If we are buying diesel for   N800 per litre and N24,000 for 30  litres, what can we achieve running the generator  for two hours? It is taking away the profit. It is sad the government is not  doing anything about it.’’