Will 2024 harvest ease food price pressure?

Nigeria's food inflation has been a cause for concern, rising 7.13 per cent year-on-year to 37.7 per cent in September this year, driven by price increases in staple foods. This has put pressure on households and raised questions about the future. Will this year's harvest be able to ease food prices amid the current macroeconomic shocks? Debajyoti Bhattacharyya, Vice President Commercials at AFEX, provides insights into the challenges and prospects for Nigeria's food prices in 2024. Bhattacharyya acknowledges the significant impact of the rising food inflation on consumers in Nigeria. The sharp increase in food prices has made it difficult for many households to afford basic necessities. Staple foods like rice, maize, and vegetables have seen substantial price hikes, leading to food insecurity and economic strain among the population. According to Bhattacharyya, one of the key factors contributing to the high food inflation is the disruption in the supply chain. The COVID-19 pandemic has disrupted global supply chains, causing shortages and driving up prices. In addition, infrastructural challenges within Nigeria, such as poor road networks and inadequate storage facilities, have further exacerbated the situation. Despite these challenges, Bhattacharyya remains cautiously optimistic about the upcoming harvest. He believes that with proper planning and implementation of effective agricultural policies, Nigeria can improve its food production capacity. By investing in modern farming techniques, infrastructure development, and market linkages, the country can enhance its agricultural productivity and achieve food security. Furthermore, Bhattacharyya highlights the role of technology in transforming Nigeria's agricultural sector. By leveraging digital solutions and data analytics, farmers can access valuable information on weather patterns, soil quality, and market trends. This enables them to make informed decisions and optimize their crop yields, ultimately contributing to a more sustainable and resilient food system. In conclusion, the outlook for Nigeria's food prices in 2024 is a complex mix of challenges and prospects. While the current macroeconomic shocks continue to exert pressure on food inflation, the upcoming harvest presents an opportunity for improvement. With a concerted effort to address supply chain disruptions, invest in agricultural infrastructure, and adopt technology-driven solutions, Nigeria can work towards achieving food security and stability in the years to come.