Apparently not finding an alternative, rice importers have returned to the trade, as no fewer than six ships loaded with the staple food item are either being expected or have arrived at Lagos ports.
Even though duty on imported rice has been increased to 110 per cent our investigations revealed last week that ships laden with the commodities are gradually sailing into the Lagos seaports.
Investigations carried out by Shipping Position Daily revealed that a wholesome of 148,604 metric tonnes of rice is expected to arrive at two terminals in Lagos.
One of the ships expected is: MV Hector, which is expected with 29,145 metric tonnes of rice on the 19th and is expected to berth at ENL terminal at the Lagos port complex. Also, Star Capella is expected at the same terminal on the 26th of January 2014 with 30,000 MT.
Others are: Atlantic Trade, which was expected last weekend with 20,800, MC Haci Ali Sari with 11,700 MT, and Wariya Naree with 32,959 MT to berth at Apapa Bulk Terminal Limited. Also expected is, MV. Aqua Runner with 20,800 MT
Insider sources told our correspondents that, the 110% benchmark on rice has not changed but there is the tendency by the federal government to revisit the policy for the benefit of the economy.
Independent sources hinted that rice importers have been mounting pressure on the Federal Government to review the tariff hike.
Some shipping agents told Shipping Position Daily they went back afterwards since they have no alternative and that, patronising neighbouring Cotonuo port has not been economically worthwhile for them.
Shipping Position Daily had reported exclusively last December 23, that ships laden with rice were berthing at the Beninoise port of Cotonou and that it is from there that the items are smuggled into Nigeria.
We had reported then that a deluge of rice-laden ships have been berthing at Cotonou port.
The diversion and subsequent smuggling of the commodity into Nigeria was confirmed by a senior customs officer.
He had confirmed that, there had been intense pressure on officers at Seme and Idiroko borders; two land borders between Nigeria and Benin Republic.
“Seizure of rice is an almost daily occurrence, but I can tell you that many still escape the eagle eyes of our men”, he stated, even as he attributed the fact that rice is still found in markets to the fact that there is no total ban on the item.
“It’s not impossible that the ones you see in the market are smuggled, but how do you determine the source, since there is no outright ban”, he had explained last year.
But our sources hinted that, they have told their importers that the Cotonou option may be counter-productive.
Two sources however told our correspondent that Government is most likely to have a rethink before the end of first quarter 2014.
One of them specifically told Shipping Position Daily last week that:"We want to be silent about ships coming into Nigeria seaports for now because the government is working round the clock to review the policy, but for now the benchmark is still the same"
Rice still come in through the land borders, smuggling still thrive but we know that there is hope for us to remain in the business”, he source stated.
According to him, most of the rice sold in Nigerian market are smuggled into the country through the porous borders.
The discovery of resumed importation of rice into Nigeria also coincided with a decision by Thailand to sell rice at a huge loss, to shore up support for the country’s rice farmers.
Thailand, Nigeria’s major rice import market is currently having a massive rice stockpile of over 17 million tones.
Reuters quoted an official who preferred anonymity as saying that government is buying at US$475 a tonne.
He said this was almost a third below the estimated cost of US$669 dollars per tonne that government incurred on buying paddy from farmers, milling and storage.
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