Diesel selling at N730 pl reduces farm produce sales
By Jeph Ajobaju, Chief Copy Editor
Diesel selling at between N720 and N780 per litre has shot up the cost of evacuating agricultural produce with trucks, and in turn the prices of foodstuff, with the multiplier effect of low sales, causing lament from farmers, marketers, and consumers.
Diesel is not regulated nor the price subsidised. Unlike petrol.
The average cost of diesel rose 28.12 per cent from N224.9 per litre in January 2021 to N288.1 in January 2022, according to National Bureau of Statistics (NBS) figures.
The highest price was paid in the South East at N317.45 per litre in January 2022, followed by the South West (N314.25).
The least price obtained in North West (N243.92), followed by the North East (N269.89).
Diesel price began to climb higher in early March, selling at between N440 and N545 per litre in Lagos. It then jumped to N640. Now, it costs about N700 in Lagos and N780 in Abuja.
The price rises almost daily.
Farmers and farm produce traders across the country are moaning over low sales and decline in profit margins which began with petrol scarcity in early February and escalated to diesel scarcity last week.
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Jos – Produce abandoned on farms
Joshua Dadi, a tomato and cabbage farmer in Jos, disclosed that most of his and fellow farmers’ perishable produce have been abandoned in farms due to the high cost of transportation.
He said marketers can no longer afford to pay to off-take produce as the cost of transporting commodities to different parts of the country has doubled.
Kano – federal government asked to take urgent action
An onion farmer in Kano, Ahmed Idris, asked the federal government to take urgent action to salvage the situation, saying Nigerians may not be able to afford to buy any agricultural produce in the market in the coming days.
“The situation will be terrible if nothing is done because very few of us are farming now due to insecurity and banditry.
“If this unsavoury situation continues, I doubt if people will still be able to buy our produce because the cost of transporting them from the farm has doubled compared to what we were complaining about previously,” he said.
Abuja – farm produce sale halted
Ojo Ibidemi, who sells beans in Abuja, also expressed concern over the high cost of transportation, per a survey conducted by The Nation.
His words: “What we used to transport from here to Lagos for N100,000 is now N200,000. There is no way we can make a profit.
“I have decided to put a temporary end to every form of business, for now, to see how the coming weeks will be.
“If nothing is done about this, what we witnessed last year about the high cost of commodities will be a child’s play compared to this.
A transporter, Ifeanyi Obodo, also an off-taker and marketer, said further increase in food prices is imminent as transporters are also not making profit transporting goods across the country.
“Earlier today,” he narrated, “I bought diesel for N780 per litre, which means what we used to transport for N200,000 will now be N500,000.”