HomeLocal NewsForex, inflation, cost of transport reasons for flour price hike - Millers

Forex, inflation, cost of transport reasons for flour price hike – Millers

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With the rising cost of flour adding to expenses in spending, and the Gurasa Bakers Association of Kano state threatening to go on an indefinite strike action if prices of flour were not reversed, the Flour Millers Association have responded to the aggrieved association and general public via a dialogue at the Public Complaints and Anti-Corruption Commission in Kano.

Yahaya Fufore, the general manager of Crown Flour Mills, explained that producers are constantly faced with both foreign and local challenges, which were among causative factors to the recent increment in the price of flour in the state and beyond, adding that the global price of wheat which is used to make flour had risen; hence the current increment witnessed.

“For us to import wheat, have to pay Forex and the rate at which we get it, isn’t helping matters, and unfortunately, we are not getting any Forex intervention from the Federal government. So, as a result, Forex has gone up by over 45%, and our prices have only risen by about 14%, and we don’t recover the cost of Forex.

“Locally, we are challenged with the prices of packaging materials and increase in transportation which is associated with the increase in diesel price in the country. As energy cost has risen, coupled with the heightened inflation, we are struggling and sincerely, we don’t recover our cost,” He said.

Irrespective of the challenges faced, Mr Fufore asserted that flour producers in the country have intervened as they consistently patronize locally made wheat which they use for production. This, however, has been inconsistent as locally produced wheat costs more than the imported ones and is relatively scarce.

Mr Ibrahim Rogo of Flour mills of Nigeria group said since 2016, the Flour millers association of Nigeria had been engaging local farmers in the local production of wheat through the Wheat farmers association of Nigeria. According to him, they are interfacing with the farmers to ensure a robust wheat production in the country.

“The long term goal is to ensure that there is an active import substitution and inclusion of local wheat into our production and has been increasingly achieving results because this year alone, the flour millers association has invested over 2bn Naira in purchasing local wheat from farmers. But, unfortunately, the local wheat is expensive than the imported ones.

“Imported wheat goes for about 230,000 Naira per metric ton while the local one goes for334, 000 per metric ton, which is largely expensive. But, that notwithstanding, we buy wheat from them but is largely unavailable,” Mr Rogo said.

Abdulfatai Issa, the area sales manager of Northern Nigeria flour mill, stressed that the association had expanded to Sokoto and Kebbi for the plantation of Nigerian Wheat adding that plans are geared towards expanding to Jigawa, Kano, Katsina, Nassarawa and other states to encourage local farmers to produce wheat in the country.

Barr. Muhuyi Magaji, Chairman of Kano Anti-graft agency, stressed that the agency would engage affected individuals and follow up on the matter to ensure that the plea of the aggrieved association would be resolved amicably even as the cause of price increase was a global issue.

“We would engage stakeholders, particularly the Central Bank of Nigeria, to ameliorate the situation. We have previously initiated a forum whereby all relevant stakeholders at both federal and state levels to intervene in homegrown Wheat, which would immensely help in food sufficiency in the country,” Barr. Magaji explained.

The stakeholders urged the Chairman of the Kano Anti-graft agency to take their message to the Governor of Kano State as they commended the agency for their efforts, which ensured ease in their mode of operations even as the agency engaged with the agency aggrieved parties regarding the recent price hike in flour.

 

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