Grain Prices Drop in Gombe Amidst Low Demand

Significant Price Reductions in Gombe Markets

Prices of key grains such as wheat, rice, and maize have fallen sharply in Gombe State, reflecting a market oversupply amidst reduced consumer demand. Traders in Gombe Central and Tudun Hatsi grain markets reported a price drop of approximately 15% over the past two weeks.

A 100kg bag of maize, previously sold at ₦62,000, now sells for ₦53,000, while beans have dropped from ₦120,000 to ₦105,000. Wheat saw one of the steepest declines, now priced at ₦86,000 per 100kg bag compared to ₦110,000.

Economic Crunch Fuels Low Demand

The Secretary of Tudun Hatsi Grain Market, Ali Musa, attributed the price drop to an economic slowdown affecting residents’ purchasing power. “Many workers and residents are unable to afford grains, despite the lower prices,” Musa explained.

Additionally, a bumper harvest this season has flooded the market with surplus produce, further driving prices down. Traders expressed concern over the lack of adequate storage and processing facilities to manage the excess supply.

Impact on Farmers and Traders

The declining prices are a mixed blessing for the agricultural sector. While consumers benefit from more affordable grains, farmers and traders face losses due to the reduced value of their produce.

Lawan Garba, Chairman of the Wheat Farmers Association in Gombe, highlighted the role of government support programs in boosting wheat production. “While these initiatives increased output, they have also led to market oversupply,” Garba noted.

Calls for Government Intervention

To mitigate the effects of oversupply, Garba urged the state government to establish aggregation centers to process and store surplus grains. Such measures, he argued, would stabilize prices and create opportunities for export.

See also  Russia ICBM Use: US Disputes Ukraine's Claim

Traders echoed these sentiments, emphasizing the need for value-added processing to enhance the marketability of agricultural commodities.

Future Outlook for Grain Prices

Traders and analysts predict that grain prices may stabilize or rise in the coming months, particularly as demand picks up ahead of major festivities or during the planting season. However, the current economic environment remains a critical factor influencing market trends.

Efforts to balance supply with demand, coupled with targeted government interventions, are seen as essential to supporting farmers, traders, and consumers alike in Gombe.

Conclusion

The situation in Gombe reflects broader challenges in Nigeria’s agricultural markets, where bumper harvests and economic pressures intersect to shape pricing dynamics. As stakeholders adapt to these changes, the importance of innovation and support in the sector becomes increasingly evident.

Further reading

Follow us on Socials:

Spread the love