Despite a bountiful harvest in 2011 in Nigeria, the market price of cereal is still on the upward trend.
NaijaAgroNet recalls that the forecast for cereals production for 2012 set a new record at 2,371 million tonnes as against 2,344 million tonnes of 2011.
Resources made available to NaijaAgroNet by the United Nations' Food and Agriculture Organisation (FAO) revealed that the growing price of cereal is attributable to the removal of fuel subsidy in the early days of 2012 by the Federal Government of Nigeria.
Other factors responsible for the price hike include civil strive and insecurity in the northern part of the country, strong cereal demand from the brewing as well as the huge demand from poultry sector.
NaijaAgroNet further gathered that in spite of the huge record forecast, the Sahel belt still has a reduction in cereal production which also affected supplies.
Ironically, FAO affirmed that some sub-regions recorded price reductions during the early period of the harvest season, citing an instance with Damanau International Market in Kano, which recorded the highest decline in the West Africa region within this period.
According the UN agency, Dawanau International Market recorded a 12 per cent and 15 per cent decline in the prices of maize and sorghum respectively compared a month prior to harvest.
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