Leadership (Abuja)
Grace Azubuike and Nkechi Isaac
11 November 2009
Abuja — The Federal Government has released N11.5 billion for the guaranteed minimum prices to assist in buying grains for storage.
The Minister for Agriculture and Water Resources, Dr Abba Sayyadi Ruma, made this disclosure while speaking with newsmen yesterday at the parley with appointed licensed buying agents for 2009 guaranteed minimum price at the National Agric Show ground in Nasarawa State.
The minister, who was represented by the Director, Food Reserve and Storage, Dr Lawal Mohamed Ila, said the parley was to converse on the successful implementation of 2009 grain procurement, and to discuss challenges and correct mistakes of the 2008 season.
Ila pointed out that though the GMP, which was inaugurated in 2008, had its challenges, it was a success because it recorded 50% success and they are very optimistic it will achieve 100% success this year.
"Some of the challenges recorded in 2008 were the problems of location; a situation where a licenced buyer is required to procure and transport grain from his location to another far distant location and the inability to access credit from the approved bank on time for grain procurement," he said.
He explained that they have resolved to use two banks this season to foster competition and that licensed buyers will also be allowed to borrow funds from other banks of their choice to procure grain so as to ease financial constraints for the season.
It was also resolved that there will be no extension of the time limit for the completion of each contract.
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