Imports from Chad, Ghana, others crash grains prices in Niger markets

The grain market in Niger State is experiencing a significant downturn due to an influx of cheaper grain imports from neighboring countries, including Chad, Ghana, Benin Republic, and Burkina Faso. This surplus has created intense competition, leading to plummeting prices for staples like soybeans, maize, millet, beans, and sorghum.

Local farmers, suppliers, and traders are grappling with reduced profits and unsold stocks, while hoarders, who bank on market fluctuations, now face substantial financial losses. Traders have reported stagnant grain prices since October 2024, with hopes for an increase tied to the upcoming Ramadan.

The decline is attributed to favorable harvests in neighboring countries, enabling Nigerian companies, particularly animal feed producers, to purchase grains at lower costs from abroad. Farmers and stakeholders in Niger State have called for government interventions to mitigate the situation and provide much-needed support through subsidized inputs and decentralized fertilizer distribution.

While consumers have welcomed the reduced prices, some farmers express concern about their inability to recover production costs, citing the high cost of inputs. The ripple effects of this crisis highlight the urgent need for policies that balance affordable food prices with farmer sustainability.
Source: DailyTrust

Expert Review: Implications for Agri-Food Stakeholders
The grain price crisis in Niger State underscores the interconnectedness of regional agricultural markets. It also highlights critical areas requiring attention:

1. Market Volatility: The reliance on imports by Nigerian companies reflects a competitive advantage for neighboring countries with more favorable agricultural systems. This trend threatens local production sustainability, exposing gaps in Nigeria’s agricultural policies.
2. Cost of Production: High input costs for local farmers, such as fertilizers and chemicals, are a significant barrier to competitiveness. Subsidy inefficiencies and poor input distribution exacerbate these challenges.
3. Consumer Relief vs. Farmer Sustainability: While price drops benefit consumers, the long-term impact on food security could be detrimental if farmers exit the market due to unprofitability.

Recommendations for Stakeholders

Government Interventions:

1. Subsidized Inputs: Provide affordable access to fertilizers, pesticides, and tractors to reduce production costs.
2. Policy Enforcement: Implement protective trade policies to manage imports and safeguard local producers.
3. Decentralized Input Distribution: Establish sales points at the ward level to enhance accessibility for rural farmers.

Support for Farmers:

1. Facilitate access to soft loans and grants to help farmers cope with market disruptions.
2. Promote cooperatives to pool resources and improve bargaining power.

Market Strategies:

1. Develop infrastructure for storage and processing to reduce post-harvest losses and create value-added products.
2. Strengthen export opportunities for surplus grains to mitigate local market oversupply.

Consumer Advocacy: Address high rice prices by encouraging investments in domestic rice production to bridge affordability gaps.

Long-Term Agricultural Reforms: Collaborate with regional stakeholders to foster cross-border agricultural strategies that ensure fair competition and regional food security.