Farmers rejoice as NCX begins trading operations …Kogi farmers trade N65.6m cashew through warehouse
Farmers are hopeful that the era of poor and unstable farm produce prices in the country may be gradually coming to an end with the commencement of trading operations by the Nigeria Commodity Exchange (NCX).
Having stable and rewarding prices for farm produce have been a longtime nightmare for Nigerian farmers as most of their harvests are sold at give-away prices.
This has been the major reason why farming remains unattractive to many youths in the country.
The farmers believe that with the commencement of operations by the NCX, better days are ahead.
The Exchange had, few weeks ago, commenced trading operation at its warehouse in Egume in Dekina Local Government Area of Kogi State by linking cashew farmers to the ready market.
Over 120 cashew farmers in the state reportedly sold their produce directly to the buyers of cashew through the warehouse.
Speaking on the operation, the managing director/chief executive officer of the NCX, Zaheera Baba-Ari, explained that efforts to begin trading operation despite the challenges pose by the COVID-19 pandemic were geared towards contributing to the present administration’s commitment to diversifying the nation’s economy, while also contributing to the revenue generation profile of the Federal Government in the face of decreasing oil revenue.
She disclosed that the major commodities of interest for trading on the NCX included sesame seed, soya beans, maize, sorghum, paddy rice and cocoa. She said other commercially viable commodities in Nigerian would be added in due course.
On the inaugural trading operation in Kogi State, Mr. Sesan Lawal, NCX’s general manager (operations), informed that around 400 tons of cashew were traded on their warehouse in the past four weeks. He said the season opened at N120,000 per ton, but has, at present, appreciated to N210,000 per ton.
He said the 400 tons of cashew traded on the warehouse amounted to N65.6 million in transaction.
“Before we started the trading operation, the Exchange visited Egume and the adjoining villages to sensitise farmers on the need to make use of the warehouse. Also, workshops on quality control, harvesting and planting procedures were organised for farmers at Ayigba,’’ he said.
He said that at present, the Exchange has 12 commodity warehouses across the country, adding that based on the success recorded in the operations in Kogi State, a new warehouse would soon be established in Kwara and Oyo states, where cashew is also produced in large quantities.
He said all NCX’s warehouses were available for domestic and export off-takers, as well as disaster management procurement and the palliative management mechanism.
A cross section of grain farmers who spoke with Daily Trust on Sunday, applauded the Exchange for commencing trading operation at the time farming activities are major challenges, like the ravaging COVID-19 pandemic, unstable produce prices, among others.
Mr. John Elijah, a farmer in Niger State, noted that with the coming of the NCX, hopes for better agriculture heightened in the country as farmers can now be sure of guaranteed prices for their produce.
He, however, called on the Exchange to establish warehouses in all the states of the federation.