Stakeholders in the agriculture sector have raised concern over a looming glut in the cassava value chain, warning farmers and processors to desist from abnormal pricing, which is capable of plunging them into huge losses.

The Guardian learnt that currently, some of the industrial processors are already experiencing glut, by way of ‘supply lockage’ – stocks of cassava flour and cassava starch kept in their warehouses beyond usual, while many are now staggering production and others have stopped producing completely for now.

The main reason adduced to this development, according to investigations, is the fact that the demand for these products has reduced in the last few weeks, primarily due to the fact that buyers have found cheaper alternatives in importation of product substitutes, especially corn starch in particular.

Reports have it that the significant price reduction is majorly due to the zero import duty granted on importation of corn starch by the Federal Government. The Guardian learnt that a ton of corn starch previously sold for over N1, 000,000 is now going for N800, 000 across markets in the country, while cassava starch is still selling for between N1, 000,000 to N1, 200,000, primarily due to high cost of the raw material.

A Cassava Processor, based in Kajola, Obafemi Owode Local Council, Ogun State, Igangan and Elekokan, Ibarapa area of Oyo State, Mr. Kazeem Lamidi, who specialise in garri, fufu and Cassava chips processing, confirmed the development.

Lamidi said: “A 50kg bag of High Quality Cassava Flour (HQCF) is currently selling for N70, 000 and that of Wheat flour is around N65, 000. There is clear difference in the prices, it actually favours imported alternatives. How do we now expect the local products of cassava origin, which are supposed to be cheaper alternatives, thrive in this unfavorable pricing situation.

“When the prices of cassava starch and cassava flour that are supposed to be cheaper local alternatives/substitutes became unbearable for the user companies like pharmaceuticals, cubed seasoning producers and others, they had to cry to the government for importation of corn starch, which they have always preferred anyway. And the government in their own way of intervention granted this with zero tariffs, so as to keep the industry moving.

“Who is to be blamed? Is it the local processors of cassava starch and flour that could not supply the users at the price they wanted? Is it the user companies that clamored for importation of alternatives? Is it the government that granted the importation tariff free?”

He noted that with the ‘supply lockage’ local processors are experiencing, adding that their demand for raw cassava tubers will also reduce, which will have drastic ripple effect on the supplying market of the cassava farmers – having the knowledge that it is the increase in industrial demand for tubers that has been keeping the entire value chain exciting.

“It is better for us to retrace our steps as quickly as possible, so that we will not out of self-mindedness choke the industry with bad pricing of raw material. As a produce of national economic and industrial interest, pricing of cassava tubers has to be well guided, so that we will not rock the boat of the entire industry.

“There is a need for a roundtable discussion between Cassava Growers Associations and Cassava Processors Association, to find an enduring solution to the recurring issue of pricing imbalance in cassava trading.

“Even, if the farmers intend to make Return on Investment of 300 per cent on the 12 to 13 months investment, it should not be through abnormal pricing, but through working on increasing yield per hectare in order to overwhelmingly cover the cost of production,” he said.

On his part, a cassava farmer based in Badagry, Sebasi Menayon, said the glut is already forcing down the price of the tuber crop, noting that many of the cassava farmers are currently selling below the profit margin.

“Though this seems to be a good development for the country, especially on the high cost of staple foods, but for some of the farmers, especially those who switched to cassava planting this year because of the huge profit recorded last year, they are already biting their nails, as the price kept falling daily.”

Menayon disclosed that the price will drop further as the country moves into the raining season, advising those who are procrastinating their harvest not to hesitate in selling them, to avoid a colossal loss.