Major Reasons Why Food Prices Are Skyrocketing
According to a report by Vanguard that the factors contributing to this issue are multifaceted, including rising transportation costs, insecurity preventing farmers from accessing their lands, foreign exchange fluctuations, climate change effects, multiple taxation, delayed budget allocations, and skyrocketing inflation.
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Key Drivers of Rising Food Prices
1. Transportation Costs: The significant increase in fuel prices has escalated transportation costs, which directly impacts the cost of moving agricultural produce from rural farms to urban markets. For example, the cost of transporting a load of yams has tripled, which in turn raises the market price of yams.
2. Insecurity: Persistent attacks by armed groups have made farming a perilous activity. Farmers in rural areas often face threats from bandits and herdsmen, leading to reduced agricultural productivity and higher prices for the limited produce that reaches the market.
3. Foreign Exchange and Inflation: The depreciation of the Naira against the dollar has increased the cost of imported agricultural inputs, such as fertilizers and pesticides. This added expense is reflected in the higher prices of locally produced food items.
4. Climate Change: Unpredictable weather patterns and extreme conditions have adversely affected crop yields. Farmers are struggling to adapt to these changes, resulting in reduced harvests and higher prices.
5. Multiple Taxation: Farmers and traders are burdened with numerous taxes and levies imposed by various authorities. These costs are often passed on to consumers, further inflating food prices.
Statistical Insights from NBS
The National Bureau of Statistics (NBS) reports alarming increases in the prices of staple foods. For instance:
– The average price of 1kg of local rice rose to ₦1,608.89 in May 2024, a 189.79% increase from ₦555.18 in May 2023.
– 1kg of brown beans now costs ₦2,009.23, up 219.05% from ₦629.75 in May 2023.
– The price of 1kg of tomatoes surged to ₦1,479.69, a 196.92% increase from ₦498.34 in May 2023.
Specific Challenges for Yam Farmers
In Benue State, known for yam production, farmers cite high transportation costs as a major factor for the steep rise in yam prices.
The cost of transporting yams to markets has tripled, and the rising prices of herbicides and pesticides also contribute to the overall cost.
Market Reactions and Trader Insights
In various markets across Nigeria, traders are grappling with fluctuating prices and high transportation costs. For instance, in Abuja’s Dakwo Market, a measure of tomatoes that used to cost ₦4,000 now sells for ₦20,000.
Similarly, at the Mile 12 market in Lagos, a 50kg basket of tomatoes has risen from ₦35,000 in 2023 to ₦100,000 in 2024.
Regional Variations
In Sokoto, a tuber of yam that sold for ₦1,300 is now ₦5,000, while in Katsina, the post-Eid al-Adha period has seen a temporary reprieve in some food prices. However, yams remain expensive, with a significant rise in cost.
Expert Recommendations
Experts, including the CEO of EA Daniels Farm, Engr Daniel Ijeh, and the Vice President of All Farmers Association of Nigeria, Daniel Okafor, emphasized the need for:
– Improved security to protect farmers and ensure consistent agricultural productivity.
– Capacity building for farmers to tackle climate change challenges.
– Timely release of budget allocations to support agricultural activities.
– Implementation of technologies and innovations to boost productivity and reduce costs.
The situation calls for immediate and coordinated action from the government and stakeholders to address these pressing issues and ensure food security for all Nigerians.
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