A survey has disclosed that the prices of maize, paddy rice and soybeans are expected to rise in the fourth Quarter(Q4) of 2022.
DAILY POST learnt this on Wednesday at the presentation of AFEX 2022 Wet Season Crop Production Report in Abuja.
Specifically, the report stated that maize would jump to 214,890/MT and 220,000/MT by the end of Q2 2022, compared to an average price of N210,229/MT in the quarter in 2021.
AFEX’s head of market data and research, David Ibidapo, while presenting the report revealed that the future is bleak for maize, paddy rice and soybeans following a possible decline in the production of these food commodities.
This is coming at a time the National Bureau of Statistics, NBS, said the October food inflation figure rose to 23.72% from 23.32% in September 2022.
The report attributed the reason for the likely food commodities production decline in Q4 to flooding, increased international demand, weakening of the naira and higher energy prices.
Also, farmers’ reduced ability to access and afford fertilizer during the period under review is a significant setback to food production capacity in Nigeria.
The government’s short-term priority should be to provide targeted support to poorer households facing higher food and energy prices.
“Nigeria is expected to grapple with lower output in the new season as farmers consumed less fertilizer during the 2022 wet season planting, as revealed by our survey. This is a major insight of the report.
“Our survey also revealed that combined with farmers’ reduced ability to access and afford fertilizer during the planting season, most farmers were unable to increase the number of hectares compared to the previous year.
“We expect to see some level of sustained rally in the prices of commodities in the new season, especially in maize, sorghum and paddy on the back of key factors like slump in production level, increased international demand, weakening of the naira and higher energy prices with impact on logistics.
“Higher prices were forecasted across all commodities in the report. Maize which faces a projected decline in production levels of up to 14% is subsequently projected to reach a higher average price point ranging between 214,890/MT and 220,000/MT by the end of Q2 2022, compared to an average price of N210,229/MT in the quarter 2021. Also, soybean prices are projected to rise by 6% by May 2023”, the report stated.
Prices of maize, paddy rice, other food commodities to rise in Q4 2022 – Survey
