Commodities Exchange predicts higher prices for maize, paddy rice

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Bags of rice

By Cecilia Ijuo

AFEX Commodities Exchange Ltd. has predicted a price increase for maize, paddy rice and cocoa as well as sesame and sorghum by the end of 2022.

Mr David Ibidapo, AFEX Head of Market Data and Research made the forecast known while presenting the 2022 Wet Season Crop Production Report on Wednesday in Abuja.

He said while there was a forecast of an average decline in production of up to 11. 5 per cent across maize, paddy rice, sorghum and cocoa, were projected to attract higher prices.

He said maize, which faced a projected decline in production of up to 14 per cent, was projected to have a higher average price point of between N214, 980 per tonne and N220,000 per tonne.

He said the price of maize in 2022 was higher compared to 2021 when it sold at N210, 229 per tonne.

Ibidapo said the price of paddy rice, which witnessed close to a 22.47 per cent decline in production volumes, was also projected to rise at the end of the last quarter of the year.

He explained that notwithstanding the decline in production of some food commodities, the production level for soybean and sesame increased by about 6.5 per cent in 2022.

He said the increased prices and market changes were largely due to flooding, the Russia-Ukraine war, fluctuating exchange rates, and the energy crisis, among other factors.

He also said that soybean price was projected to rise by 6 per cent by May 2023.

“Price and market changes across six key commodities have been affected by predictable seasonality effects, activities in the agricultural value chain and macroeconomic as well as global events.

“The projected price hikes across commodities in the report are also tied to incidences of flooding and effects of the Russia-Ukraine war.

“Increases in the prices of fertiliser are another contributory factor.

“Also, access to reliable data is a recurring limitation for agriculture business on the African continent,’’ Ibidapo said.

The AFEX head of market data and research said the company had consistently advocated for a food balance sheet for the continent to strengthen productivity while enhancing food security.

He said it was important for Nigeria to build food reserves across key staples, spur production and synchronise efforts between government and the private sector to position Nigeria against potential global shocks.

Ibidapo said the 2022 crop production report, which was the third edition, surveyed 20,677 farmers as against 9,117 farmers surveyed in 2021.

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