Chairman of BUA Group, Abdul Samad Rabiu, has pledged to further crash the prices of rice and other food items, which he said have already decreased over the past year.
This was as he lauded President Bola Tinubu for granting waiver on imported food items, stressing that his foresight helped slash food prices in the country.
Recall that the Tinubu’s administration in July 2024, the announced the suspension of customs duties on imported food items to stem food inflation.
Rabiu stated this while speaking to State House Correspondents after meeting with President Tinubu on Thursday, adding that BUA Foods keyed into that policy and was able to import quite a lot of wheat, maize and rice.
“At the time food prices were really very high last year. For example, the price of rice was about N100,000 or thereabout per 50 kilo bag. The flour was about N80,000 per bag and maize was about N60,000 per 50 kilo bag, and pasta above N20,000 per Carton. So what we did was, we keyed into that policy and BUA was able to import quite a lot of wheat, maize and rice.
“And the moment the shipment started coming, we started processing, we crushed the prices of some of these commodities. And today I’m happy to inform you that the price of rice is about N60,000 from what it was last year at N110,000. Flour is today N55,000 Naira per 50 kilo bag.
“Maize is about N30,000. And this happened because of Mr President’s foresight and vision by introducing that one-off duty waiver for a period of six months, and with that, we’ve been able to bring down the prices of these commodities,” Rabiu said.
He added, “So, what has been happening and a lot of people probably don’t know this, is that Nigerians, a lot of companies in Nigeria usually buy a lot of paddy. That is rice paddy.
“Rice Paddy is what you use to process rice. So, the moment the harvest season starts, a lot of people will now buy a lot of these paddy and hold it for a period of three to four months. The moment the season finishes, then the price will double. So a lot of people don’t know that, but that has always been the problem.
“That does not really in any way affect the farmer, because the farmer is getting his four to N500,000 per ton of paddy. But the people that are buying and holding for three to four months, once the season finishes, it goes back up to N800,000. Hence why you are getting N110,000 per bag.
“So, what that intervention did at the time when we brought in was to create an issue for those hoarders. Because the moment we imported, we were selling, and those orders had a lot of paddy, they could not sell, and the price now came down, and it is still down. So a lot of those holders are actually crying now and losing money.”
The billionaire businessman said that the Rice Millers Association has come together to address the issue of hoarding by some companies, adding that the association will not allow any of its members to hoard rice.
