•Farmers may halt production in 2026, DeBranch Farmers warns
By Gabriel Ewepu
The Chief Executive Officer of the Centre for Promotion of Private Enterprises (CPPE), Dr. Muda Yusuf, has cautioned the Federal Government against allowing the recent drop in rice prices to negatively impact local producers, warning that poorly managed price reductions could discourage farmers and threaten domestic production.
Speaking with Vanguard, Yusuf said while lower rice prices are welcome relief for consumers, government must strike a careful balance to ensure farmers do not suffer losses that could force them out of production.
According to him, the falling price of rice should serve as an opportunity for government to engage local producers and address their concerns through targeted support, rather than focusing solely on price reduction.
“We need to balance the welfare of consumers with the survival of farmers. People are happy that rice prices are coming down, but those producing the rice are complaining of losses. This presents a real dilemma,” Yusuf said.
He stressed that it would be harmful to the economy if local producers are forced off their farms due to unsustainable pricing, adding that government intervention is needed to protect investments already made in the rice value chain.
Yusuf recommended the introduction of a Guaranteed Minimum Price (GMP) for rice, noting that such mechanisms are used globally to protect farmers when market prices fall below sustainable levels.
“If prices fall below a certain benchmark, government can step in to buy from farmers. This will keep them on the farms and sustain food production,” he said.
Echoing similar concerns, Co-Founder and Chief Executive Officer of DeBranch Farmers Limited, Mrs. Sandra Victor-Gwafan, warned that continued rice importation could push farmers to abandon production by the 2026 farming season.
Victor-Gwafan, who operates a rice mill, said farmers are currently processing rice at a loss due to high input costs, especially fertiliser, making it difficult to compete with imported rice.
“If farmers cannot sell last season’s harvest at a profit, they will not return to the farm next season,” she warned, adding that unchecked imports could undermine Nigeria’s rice self-sufficiency drive.
The post CPPE to FG: Ensure rice price drop doesn’t hurt local producers appeared first on Vanguard News.
