Rice and other grains such as beans, maize, guinea corn etc used to be the food of the common man until recently, when it completely got out of their reach due to an astronomical increase in the price.
Statistics has shown that the 50kg of Rice that was sold at thirty five thousand Naira (35000) about eight months ago now goes for sixty five thousand Naira (65000). A bag of maize was twenty five thousand Naira (25000) eight months ago but selling for fifty thousand Naira (50000) today.
As the invisible hand of demand and supply will continue to affect the price of commodities in the market, so is the Government’s so called intervention in the purchase of rice and other grains for distribution, in the name of palliative, will continue to force the price of these commodities upward.
Research has shown that following the release of five Billion Naira each to states for the purchase of rice and other grains for distribution to citizens in the month of June, 2023, the price of these commodities skyrocketed in the month of July in the same year.
It was also alleged that the President distributed two hundred million naira, each to legislatures for the purchase of rice for their constituents during the last Christmas.
This so called intervention of government in the purchase of these commodities with high and over inflated prices is responsible for this astronomical rise in their prices. Where government is involved in the purchase of these commodities with over inflated prices, you don’t expect such price to remain the same, more so that the primary aim of an entrepreneur is the maximization of profit.
Until the government stops the purchase and distribution of rice and other grains directly to the populace, the price of these commodities will continue to be on the rise.
A stitch in time saves nine, as Nigeria sitting on on time bomb waiting to explode due to starvation and hunger.