Farmers lament drop in food prices amid FG’s moves to reduce inflation

The prices of major staple foods, including maize, millet and rice, have continued to decline in recent weeks.

This development has sparked concerns among stakeholders and actors in the agric value chain, especially farmers who fear that the continued decline in the prices of farm produce could discourage many from remaining in the business.

In recent years, Nigeria had seen an increase in the number of people taking up farming, especially following the border closure policy which was introduced by the administration of former President Muhammadu Buhari.

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With high prices of food commodities in the last few years, many farmers had made fortunes, making farming an attractive enterprise.

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However, the drop in prices of food items lately has generated mixed reactions. While it has brought some relief to consumers, farmers are concerned about potential loss, having purchased inputs at higher prices.

According to the National Bureau of Statistics, food inflation recorded a marginal drop in December 2024, coming down to 39.84 per cent crom 39.93 per cent recorded in November. In the NBS rebased index released recently, food inflation “dropped” to 26.08 per cent in January.

Alhaji Bala Musa Sara, a merchant and Chief of Sara grains market in Gwaram Local Government Area of Jigawa State, disclosed that while price fluctuation could be of natural cause, the one currently experienced could be attributed to some factors.

He said, “The drop in prices of food items is not only in this market; it is virtually across the country especially in areas that deal in grains.

“A jumbo bag of sorghum which would go for about N80,000 is now sold at N60,000 or so. A jumbo bag of paddy rice which was sold at N75,000 now goes for between N62,000 and N67,000, depending on the variety and quality. A jumbo measure of rice which was N4,000 is now between N3,200 and N3,500. A jumbo bag of parboiled rice containing 40 jumbo measures now goes for between N132,000 and N140,000 as against N160,000 or thereabout. But you know our measures and bags are of jumbo sizes here. The price also depends on the quality of the grains.”

Alhaji Musa said while it was difficult to tell the factors responsible for the trend, he hinted that withdrawal of United States Agency for International Development (USAID) aid to Nigeria could contribute to the glut in the market as there were huge purchases of grains for distribution to internally displaced persons in conflict-ravaged regions by the agency.

“First, we must acknowledge that it is from God. But what people are saying is that the withdrawal of USAID could be one of the reasons behind this sharp decrease in prices of essential food items. There used to be huge purchases of rice and other food items here which were transported and distributed to internally displaced persons in conflict-ravaged areas. They used to come here and buy like 1,000 bags of rice, but it has stopped now. But by and large, this is a phenomenon that affects different places, not only here.”

Another grain seller in the market, Naziru Sani, said, “There is a reduction of at least N300 in each jumbo measure of rice. Grade A rice (one with high quality) was around N4,000 and even N4,200; but it is now between N3,800 and N3,700. But you know our mudu is different from that of the other markets, as we use a jumbo one, bigger than one found in other markets.”

On reason behind the sharp decline in the prices, he said, “We hear that they are importing grains into the country, and you know this will automatically result in excess supply, which will force the price to go down, going by the law of demand and supply.”

Ahmad Hassan, a graduate of Agriculture and grain seller in Misau LGA of Bauchi State, said the decline in the prices of food commodities ahead of Ramadan season was surprising.

“Yes, it is true that the prices of grains have crashed. I sell maize, millet, rice, cowpea, among others. It is unusual that the prices of these commodities have reduced at this time when Ramadan is approaching. The usual thing was for prices of food items to increase in this period, but this year, the trend has changed, going by the development across markets, changed.

“If you take maize, for example, a bag of 100kg is now being sold at between N51,000 and N53,000, which wasn’t like this before. A bag of millet is now between N50,000 and N52,000. A bag of cowpea which earlier sold at above N100,000 is now between N75,000 and N79,000. A bag of parboiled rice is now slightly above N100,000 as against its former price of N120,000 and above, depending on the quality and variety.”

Further speaking on the reason behind the sudden crash in the prices of the commodities, Hassan noted, “It may be as a result of the lifting of ban on importation. I read in the newspaper that a certain company dealing in feed formulation had been allowed to import maize. This will lead to high supply, which will result in decline in the price. There could be other factors, too.”

But Abubakar Aliyu, a merchant at grain market in Dukku LGA of Gombe State, attributed the fall in the price of food items to gradual return of farming activities in areas affected by insurgency, leading to increase in the food production volume in the country.

“Just three weeks ago, a 100kg bag of cowpea was sold at N100,00 – N102,000, but now it goes for N85,000 – 95,000. Maize was sold this week at between N47,000 and N48,000 as against N52,000 – N55,000 some weeks ago.

“This decline in the prices, as I understand, may not be unconnected to the fact that some farmers are gradually returning to their farms in places like Zamfara and Sokoto, where farmlands were inaccessible due to insurgency.”

‘It’s discouraging,’ farmers lament

Meanwhile, some farmers have raised concerns that this trend could lead to losses and even discourage people from farming.

Speaking to our reporter, Shittu Alhassan Shu’aibu, a farmer in Ningi LGA of Bauchi State, urged government to come to the rescue of farmers by subsidising major farm inputs such as fertilizers and chemicals, warning that farmers might be forced out of production if prices of produce continue to decline while price of farm inputs remain high.

“Honestly, the downward trend in the food prices is discouraging, particularly for farmers who had purchased farm inputs at higher costs. It is even more daunting for irrigation farmers, considering the additional cost they incur in buying fuel, pumping devices and other inputs. This, as I see it, will discourage starters, who perhaps were forced to start farming because of the harsh economic situation in the country.

“If the government wants to introduce a policy that will crash price of food items, it is better to start by subsidising farm inputs so as to at least reduce the production costs incurred by the farmers. As it is now, the price of farm inputs hasn’t reduced but that of the produce has drastically dropped. How much did farmers buy a bag of fertilizer last production season? So, I think a lot needs to be done before adopting certain policies like importation of food items. Importation can be justified when there is scarcity, but right now I think we have enough.”

But Salahuddeen Abubakar, a farmer in Jigawa, held a contrary view, insisting that it was premature to assume that prices would not shoot up again.

“I think it is too early to conclude that the prices will not surge again. It is not yet June, July or August, which is the peak period when prices of food items typically skyrocket due to limited supply.

“Even farmers who sold their produce immediately after harvest when the price was lower than it is now could have made some profits. Those who will be negatively affected, I think, are hoarders and people who want to make excessive profits.

“The major concern is that the price of farm inputs is decreasing but only slightly, and this may discourage farmers if the trend persists.” he added.

Importation of grains ill-timed –AFAN

The All Farmers Association of Nigeria (AFAN) has said the recent importation of grains into the country is ill-timed, noting that it will negatively impact local farmers who have already produced grains.

Speaking in an interview with BBC Hausa service, the National Publicity Secretary of AFAN, Mohammed Magaji, said the ideal time to import grains into the country should be when farmers had exhausted their supplies.

“The ideal time to import grains should be when farmers have sold out their stock and the price is high, especially around July, August and September, during which even the farmer himself is looking for grains to buy at cheaper prices,” he said.

Mohammed also lamented that despite significant drop in food prices, the cost of essential farm inputs like fertilizers, seeds and chemicals continues to rise, warning that this will discourage farmers.