The Economic Effects of The Rise And Fall Of Rice Production In Nigeria

Abstract

The world experienced a dramatic increase in food prices during the first half of 2008. According to FAO (2008), international nominal prices of all major food commodities reached their highest levels in nearly 50 years while prices in real terms were highest in nearly 30 years. The FAO food price index increased by 53.0 percent for the first three months of 2008 compared to the same three months in the previous year. The rising prices of food are led by vegetable oils which increased by more than 97.0 percent followed by grains which increased by about 87.0 percent (Ehui, 2013) The current agricultural market is characterized by the increase in international prices of not just a few but of nearly all major food and feed commodities. The increase in prices is expected to have adverse effects on poverty and is worrisome precisely because it is expected to hurt the poor the most.