Dama: Foreign rice influx forcing local rice mills to close shop

The President of the Rice Millers Association of Nigeria, Peter Dama, has raised concerns about the dire situation facing the local rice industry in Nigeria. In a recent interview with CNBC Africa, Dama emphasized that the influx of foreign rice into the Nigerian market is causing local rice mills to shut down. This challenge is compounded by high energy costs, scarcity of paddy, and the lack of support from the government. Dama stressed the urgent need for the government to provide incentives such as access to credit with low-interest rates, subsidized fertilizer, and irrigation facilities to boost the sector. According to Dama, the high cost of energy is a major impediment to local rice production. The dependency on energy for milling processes escalates production costs, making locally produced rice less competitive in the market. Dama called on the government to address the issue of expensive energy costs to enable local millers to operate more efficiently and offer their products at competitive prices. Another significant challenge highlighted by Dama is the scarcity of paddy, which is essential for rice production. He emphasized the need for irrigation facilities to support multiple cycles of production throughout the year. By investing in irrigation, local farmers and millers can mitigate the impact of seasonal fluctuations and enhance productivity. Moreover, Dama underscored the importance of subsidized fertilizer and other inputs to make rice farming more sustainable and cost-effective. In seeking government intervention, Dama articulated the industry's expectations for support and incentives. He called for the provision of credit facilities with favorable interest rates to enable millers and farmers to access much-needed financing for their operations. Additionally, he urged the government to prioritize the availability of irrigation infrastructure to ensure consistent and efficient rice production. Dama also emphasized the significance of subsidized inputs like fertilizer to alleviate the financial burden on local rice stakeholders. As the country prepares for the upcoming planting season in 2025, Dama urged the government to learn from past experiences and adopt strategies to mitigate the impact of floods on rice farms. He highlighted the losses incurred due to previous flooding incidents and emphasized the need for a revised strategy to safeguard rice production. By implementing proactive measures and investing in sustainable farming practices, Nigeria can enhance food security and support the growth of the local rice industry. In conclusion, the challenges facing the local rice industry in Nigeria require immediate attention and decisive action from the government. By providing targeted support, incentives, and infrastructure, policymakers can empower local millers and farmers to increase productivity, competitiveness, and sustainability in the rice sector.