Labana Rice Mills' Alhassan Yusuf on Rice Pricing Dispute

Rice millers have indicated that selling a 50kg bag of locally produced rice below N58,000 is unfeasible due to high costs associated with paddy, electricity, and diesel. Alhassan Yusuf, General Manager of Labana Rice Mills, explained that to cover essential expenses, the lowest price they can offer is N58,000.

Currently, locally milled rice is priced between N60,000 and N67,000. The Nigerian government, represented by Minister of Agriculture and Food Security Abubakar Kyari and Minister of State Aliyu Sabi Abdullahi, suggests that the average production cost should allow for a selling price between N55,000 and N57,000.

This has led to a dispute, as processors cite high paddy prices and operational challenges. The managing director of Umza Rice Mills revealed that his company incurs about N100 million monthly on electricity, with diesel costs nearing N200 million.

Economists have advised the government to address underlying costs rather than impose price controls, as this could deter investment and disrupt supply.