News

March 13, 2014

Distributors working against backward integration in rice sector — RIMIDAN

Distributors working against backward integration in rice sector — RIMIDAN

By Franklin Alli

Rice Millers, Importers and Distributors Association of Nigeria (RIMIDAN) have accused rice distributors in the country for working against the implementation of backward integration policy in the sector.

Tunji Owoeye, the President of the Association, said the distributors are patronising smuggled rice from neighbouring countries instead of buying from the local millers.

“We are seeking the cooperation of rice distributors in Nigeria in ensuring that we combat the menace of rice smuggling in Nigeria. You will recall that government in her wisdom has reeled out backward integration policy for the sector.

This has actually not taken off efficiently because of the menace of smuggled rice that has been coming into Nigeria and now we feel this is the best time to address the issue especially for those receivers who happen to be in the distribution segment of the value chain,” he said.

According to him, 2-3 million tonnes of parboiled rice was discharged in Benin republic last year and they all found their way into Nigeria. “If we resist smuggled rice coming into the market there will be no way for smugglers to remain in business. Patronising them affects everybody.

“Distributors are a strong factor along the value chain and if they make use of the power that they have it will help to checkmate the influx of smuggled Cotonou rice.

“Let us have confidence in our leaders especially in their efforts to create jobs for the teeming unemployed. “This is a nationwide campaign against all those trying to frustrate the well meant intention of government in fostering self-sufficiency in rice.

“Some companies including Elephant Group, Olam and Flour Mills have already gone into mechanized rice farming because we are beginning to see the seriousness of government in ensuring that we protect the backward integration but there must be a resolution by government in ensuring that the investments we have is protected and that is by ensuring that the issue of smuggling is curtailed.