Prices of maize, paddy rice, others will increase by December, Commodities Exchange predicts
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, they 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 2021when it sold at N210, 229 per tonne.
Ibidapo said the price of paddy rice, which witnessed close to 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, 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 rate, and 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 effort 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.
On AFEX’s contribution to the commodity subsector, Ibidapo said the company was harnessing Africa’s commodities and talents to build shared wealth and prosperity.
He said AFEX was leveraging on its infrastructure and platform investments work outlook to unlock potentials in Africa’s commodities markets.
“Since its inception in 2014, AFEX has developed a viable commodities exchange model for the West African market.
“It is currently on track to impact one million producers, provide services in productivity and access to finance as well as to markets.
“The company is working towards facilitating trade within Africa worth over 500 million dollars in the next five years.
“AFEX’s vision is to be the reference point for commodities in Africa,’’ Ibidapo stressed.
Some major stakeholders in the agricultural value chain such as Mr Oluwatoba Asana, Country Manager OCP Africa Fertilisers Nigeria Ltd. and Mr Sheriff Balogun, President, National Sesame Seed Association of Nigeria were present at the meeting.
They spoke about the need for capacity-building, accurate data, policies, planning, strategic alliances and infrastructure to reposition the agricultural sector and ensure food security in Nigeria.
