Novus Agro: No short-term relief on price of grains

The price of grains in Nigeria continues to soar, with analysts at Novus Agro projecting no short-term relief in sight. Chike Nwagwu, a Director at Novus Agro, explained in an interview with CNBC Africa that the price of grains is closely tied to the country's exchange rate. As the naira struggles to find stability against the dollar, the cost of grains has been steadily rising. Nwagwu highlighted that when the naira depreciates, the demand for Nigerian grains increases from countries with stronger currencies, as the grains appear cheaper to them. In dollar terms, the prices have remained relatively stable, but in naira terms, they have significantly risen. For example, the price of maize has jumped from around 300,000 naira to 570,000 naira per tonne. Nwagwu predicts that prices could reach 700,000 naira per tonne in the future, indicating a looming crisis situation. The outlook for other grains like wheat, sorghum, and paddy rice is similarly bleak, with prices expected to continue to rise depending on the exchange rate. Nigeria, once aspiring for food sufficiency, now finds itself in a food crisis. The country is grappling with insecurity in food belts, hindering agricultural production. As a response, there have been discussions about releasing grains from reserves to alleviate pressure on food prices. However, Nwagwu noted that the government's options are limited in addressing the crisis. While advocating for increased production volumes through year-round planting, Nwagwu emphasized the importance of enhancing crop yield. He suggested leveraging high-yielding crop varieties to boost productivity and alleviate pressure on food prices in the short term. One major challenge facing agricultural production in Nigeria is insecurity, not only from bandits disrupting farming activities but also from pilferage in the fields. Nwagwu highlighted that theft of harvested crops significantly contributes to food shortage in the country. In light of these challenges, Nwagwu advised against prioritizing grain exports and instead emphasized the need for self-sufficiency in staple crops like cassava, yams, and paddy rice. He suggested that Nigeria focus on crops where the country has a natural advantage to achieve food security. In conclusion, Nwagwu underscored the urgency of addressing the root causes of the food crisis in Nigeria, which involves a multi-faceted approach encompassing agricultural productivity, security, and strategic crop selection. As the country navigates the challenges posed by fluctuating exchange rates, insecurity, and pilferage, concerted efforts are needed to stabilize food prices and ensure food security for all Nigerians.