Olam Nigeria Limited has unveiled plans to increase its
stake in the rice industry as part efforts to aid the realisation of the
self-sufficiency target and job creation efforts of government.
The General Manager of the firm, Reji George, disclosed
yesterday that his company had concluded plans to kick-start milling of
200,000 metric tonnes of paddy rice in Doma Council, Nassarawa, by June 1,2015.
According to the firm, its backward integration
plan in the sector is expected to aid local rice production and job creation.
The firm had earlier this year unveiled its locally produced rice to the Nigerian market.
The firm had earlier this year unveiled its locally produced rice to the Nigerian market.
Olam’s Business Head for Rice, Anil Nair, had explained
that the launch was designed to meet growing local demands for the commodity as
well as reduce its importation.
He explained that the launch of the commodity in Lagos
was strategic, since the state holds the largest market of consumers of rice.
He said: “There are lots of paddy been produced and Lagos being the biggest market in the country is having local rice coming to it. It is a sign of good things to come and we hope that two years from now, we will be able to bridge the gap. We have a milling capacity of about 800,000 tonnes in the country and we hope to help this country eliminate import completely.”
He said: “There are lots of paddy been produced and Lagos being the biggest market in the country is having local rice coming to it. It is a sign of good things to come and we hope that two years from now, we will be able to bridge the gap. We have a milling capacity of about 800,000 tonnes in the country and we hope to help this country eliminate import completely.”
On placing a total ban on the commodity, George said: “I
believe it should be a gradual process. Before you ban rice or any agricultural
commodity you must have to develop the local strength of rice production. If
you plan the ban of importation of rice, companies like Olam are into
commercial production of rice with 6,000 hectares in two cities, making it
12,000 hectares that would definitely help bridge the demand and supply gap,
and with support from other companies, in addition to the role government is
playing.
“In few years time, we would be able to bridge the demand
and supply gap and we would be able to be self-sufficient in rice production.”
The community leader of a settlement in the Doma area, Kushunta Adi, said, “Before the coming of Olam to our community, most people in this area were idle, which is not good, but today, the story is different. In fact, at that initial time, most of the excavators on the project were foreigners, but today, the company has employed many of our youths and this is helping many families here”.
“In fact, what they have done here is enormous. I believe
if the Federal Government can copy them, the country would be better. If we
have one or two other companies like this in Nigeria, it will be difficult for
us as a country to import rice,” he added .
A former Attorney General of the Federation (AGF) and
Secretary of the Rice Farmers’ Association, Mr. Michael K. Aondoakaa, in his
position, urged the government to urgently protect the local rice industry from
being thrown out of the agriculture sector.
Aondoakaa, at the House of Representatives hearing, stated that corrupt actions by some rice importers could destroy government’s policy and truncate the local rice sub-sector.
Aondoakaa, at the House of Representatives hearing, stated that corrupt actions by some rice importers could destroy government’s policy and truncate the local rice sub-sector.
He disclosed that a certain company behaves like
another government and has resorted to dubious activities in apparent bid to
frustrate the local rice manufacturers.
He called on all and sundry to stop this untoward activities in the best interest of Nigeria, especially local farmers and others.
Source: http://www.thisdaylive.com/articles/olam-raises-investment-on-rice-backward-integration/209279/
