AFEX, Africa’s leading commodities player, has launched its 2023 Crop Production report, foreseeing a surge in commodity prices attributed to a decline in production and rising demand for processing and exports.
The comprehensive report which was launched Thursday in Abuja captured six key commodities (Maize, Paddy Rice, Soybean, Sorghum, Cocoa, and Sesame).
AFEX anticipates an increase in prices across all commodities, with Paddy Rice experiencing a notable upswing of 34 per cent in the 2022/2023 season.
Factors contributing to this surge include increased flooding and the India rice ban. The baseline pricing of N353,000/mt (per metric ton) is expected to rise to N400,000/mt and stabilize at N480,000 to N500,000/mt by Q3 2023, the report noted.
Highlighting food insecurity and a historic high food inflation rate of 30.64 per cent, the report identifies a 5.7 million metric ton shortage in Nigeria across human consumption and agro-processing.
Nigeria’s Global Hunger Index score remains at 109th out of 125 countries, underscoring a severe food security crisis.
The report suggests that the surge in food prices witnessed in the 2023 season will exacerbate these challenges, hindering progress towards achieving Zero Hunger by 2030.
Speaking at the launch event, AFEX Nigeria’s President/CEO, Akinyinka Akintunde, emphasised the need for substantial investment in the agricultural sector, addressing infrastructure, logistics, and technology gaps.
Credit: Punch
