Stakeholders decry rice price surge despite tax waiver

Stakeholders in the rice sub-sector have decried the rising cost of the produce despite the federal government’s tax waiver.
The stakeholders spoke in separate interviews with journalists on Sunday in Lagos.
The federal government temporarily waived import duties and value-added tax on rice and other essential food items to help curb food inflation and ease economic pressures on citizens from July 15, 2024, to December 31, 2024.
Specifically, the Nigeria Customs Service, on August 14, released implementation guidelines that temporarily waive all import (and associated levy) taxes for rice, sorghum, millet, corn, wheat, and beans until December 31, 2024.
The chairman of the Rice Farmers Association of Nigeria (RIFAN), Lagos State chapter, Raphael Hunsa, urged the government to engage local rice farmers rather than an overdependence on its import.
“The tax waiver is being mishandled, and that is why we are not seeing its impact in cutting down the price of rice in our markets.
“The federal government is trying its best to do something about the food inflation in the country. It is just that when these provisions get to the middlemen before getting to the grassroots, there are discrepancies,” said Mr Hunsa.
He urged the government to engage stakeholders on the sustainability and availability of local rice.
“These set of businessmen that the government is giving license to import rice with tax waivers are just working for their own benefits,” Mr Hunsa said.
On his part, Akin Alabi, an agriculture expert, called for monitoring and compliance with the tax waiver at the nation’s borders.
“The government has effected tax waiver on rice, and that has been done many months ago. However, it is not effective because there is a difference between pronouncement and action.
“So, the government needs to work effectively with customs and ensure that the pronouncement of tax waiver on rice and other essential commodities is duly effected for the citizens so that we can get these food items at affordable prices,” he said.
Also, John Nwabueze, a foodstuff trader in the Alimosho area of Lagos State, said the tax waiver on rice was not evident as the produce price is increasing daily.
“The price of short grain rice is N86,000 compared with N70,000 and below we sold two months ago. Meanwhile, long grain rice now sells at N120,000 and above as against N80,000 sold two months ago.
“If the tax waiver on rice is enforced, we will see it in the price of the produce, but they can say it, and when we go to the market, we see something different.
“The price of rice may likely go up during the Christmas season, but if the tax waiver is really implemented, the price of a 50kg bag of rice can go as low as N50,000 to N65,000,” Mr Nwabueze said.
Ada Okoli, a consumer, decried the current price of the produce in the market.
Ms Okoli called for the government’s intervention to address the persistent hike in the price of the produce and others ahead of yuletide.
(NAN)
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