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nairaland.net • View topic - FG Floats N5.8bn Rice Production Scheme

FG Floats N5.8bn Rice Production Scheme

FG Floats N5.8bn Rice Production Scheme

Postby Richard Akindele » Mon Jul 24, 2006 4:57 pm

In a bid to actualize the presidential initiative on accelerated local rice production, the Federal Government has concluded plans to float a N5.8bn rice scheme. The programme is to encourage local farmers to increase their cultivation of the product to cushion the effect of the ban placed on the importation of rice in the country.

Minister of State for Water Resources, Dr. (Mrs.) Salome Audu Jankada who disclosed this in Abuja, said of the N5.8 bn, an estimated N1.0bn will be deployed to flood protection and construction of dykes, access road will gulp about N0.6bn, head works N0.4bn, irrigation infrastructure N2.8bn, farm machinery N0.3bn while other facilities are expected to cost about N0.7 bn.

Jankada noted that though the scheme was a private-public partnership programme, the government has agreed to finance flood protection, access road, domestic electricity, and drainage put at N1.8bn, leaving the investor (s) to finance irrigation, mechanization and rice milling, estimated to cost N4.0 bn.

She said the proposed private-government partnership programme was considered highly attractive for any private investors or groups of investors, adding that going by the medium term international rice price forecast the financial rate of return on private investment is estimated at over twenty five per cent.

?The government has in consultation with the Food and Agriculture Organisation (FAO) therefore selected certain public sector irrigation schemes, for divestiture to private sector. These public sector schemes are currently operated by the River Basin Development Authorities (RBDAs) under the purview of my ministry.

The Tada Shonga scheme in Lower River Basin Development Authority was selected to pilot this accelerated rice production programme and public-private partnership in irrigation development,î Šankada said.

The minister recalled that, Nigeria was a major rice importer, with imports rising steadily from $259m in 1999 to almost $1bn per annum thereafter.

To reduce this dependence on imported rice as well as develop the local rice industry, the government came up with the Presidential Initiative on Accelerated Rice Production. It also banned milled rice imports and placed a 50 per cent duty on parboiled rice.

In addition, a levy of 10 per cent was imposed on rice imports to create a dedicated fund for the development of the local rice industry including processing and marketing.

However, the existing rice production potential has not yet been realized as small holder (small scale, subsistence and fadama farmers) output is inadequate and paddy processing is sub-standard. To meet this shortfall, government realized the potential of large-scale mechanised irrigated agriculture using improved modern techniques.

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