BusinessDay... the voice of business: ACGS faces daunting task as world food crisis deepens

ACGS faces daunting task as world food crisis deepens
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BLESSING ANARO on 29 April, 2008 02:00:00
 
With the looming food crisis becoming more apparent and sacry, the task before
the Agricultural Credit Guaranteed Scheme (ACGS) has been brought to the fore.
Experts say more funds have to be churned out for farmers to meeting
expectation.
Before, now players in the agriculture industry were seemingly satisfied with
loans granted to farmers to boost agriculture.
They expressed hopes that funding would now be strategically directed so as to
meet the short fall of what will be lacking in Nigeria’s import.
After making provision of over N813 million to farmers as loans between January
and November last year, experts had said food might become cheaper and available
to consumers.
Statistics made available by the Central Bank of Nigeria (CBN) in its monthly
report for November, 2007, a total of N813.2 million was guaranteed to 7,140
farmers under the Agricultural Credit Guarantee Scheme (ACGS) during the month.
This represented an increase of 55.5 and 57.9 per cent over the levels in the
preceding month and the corresponding period of 2006, respectively.
A sub-sectoral analysis of the loans guaranteed indicated that the food crops
sub-sector had the largest share of N682.3 million or 83.9 per cent guaranteed
to 6,582 beneficiaries, while the livestock sub-sector received N92.8 million or
11.4 per cent guaranteed to 406 beneficiaries.
Also, the fisheries sub-sector obtained N16.2 million or 2.0 per cent
guaranteed to 44 beneficiaries.
The cash crops sub-sector was granted N8.2 million or 1.0 percent guaranteed to
32 beneficiaries. Other sub-sector got a balance of N13.7 million or 1.7 per
cent guaranteed to 76 beneficiaries.
Analysis by state showed that 24 states benefited from the scheme, with the
highest and lowest sums of N143.7 million (17.7 percent) and N0.5 million (0.1
per cent) guaranteed to Kebbi and Benue states, respectively.
Agricultural activities during the month of November 2007 in the Southern
States consisted of harvesting of tubers, fruits and vegetables, while in the
Northern states, most farmers were engaged in harvesting of late maturing
grains, as well as pre-planting operation in preparation for dry season
planting.
However, in the Livestock sub-sector, farmers were engaged in fattening and
other management activities in anticipation of the end of year sales.
Retail price survey of most staples by the CBN showed that the prices of major
staples recorded mixed developments in November 2007.
Eleven of the fourteen commodities monitored, recorded price increases ranging
from 3.4 per cent for yellow maize, to 19.8 per cent for vegetable oil, over
their levels in the preceding month.
The remaining three however, recorded price declines ranging from 0.9 for white
garri to 9.3 percent for yam flour. This development was attributable to the
early cessation of rains experienced in most northern states, as well as
increase demand due to the end of year festivities.
Similarly, at 293.6 (1990=100), the All-Commodities price index in dollar
terms, increased by 1.7 and 168.6 percent over the levels in the preceding month
and the corresponding period of 2006, respectively.
Further analysis showed that the six commodities monitored, recorded price
increases ranging from 0.8 per cent for cocoa to 32.2 per cent for soya bean
over their levels in the preceding month. Also, the apex bank said available
data showed that the all-items composite Consumer Price Index (CPI) for the
month of November,
2007 was 166.5 (May 2003=100), representing a decline of 0.1 per cent from the
level in the preceding month.  The development was attributable to the decline
in the price of some food items.
The urban all-items CPI for the end of November, 2007 was 188.6 (May 2003=100),
indicating an increase of 1.3 per cent over the level in the preceding month.
The rural all-items CPI for the month was 156.9 (May 2003=100), and represented
a decline of 0.8 per cent from the level in the preceding month. The end-period
inflation rate for November 2007, on a year-on-year basis, was 5.2 per cent,
compared with 4.6 per cent recorded in the preceding month.