FG, Stallion Group Strike N165bn Rice Deal
- By Henry Iortim
- Published March 15th, 2009
- News
- Unrated
The federal government and the Stallion Group last week in Abuja entered into an agreement for the massive production of rice in the country. BusinessWorld Intelligence can disclose that the deal which will cover about 10 states in the country with comparative advantage in rice production is valued at over N165 billion.
BusinessWorld Intelligence can disclose that the initiative involving the investment of $35 billion by Stallion group into rice production, processing and fertilizer is aimed at actualizing part of the goals of the National Food Security Programme (NFSP) and making agriculture a major foreign exchange earner for Nigeria. Rice has in the last two decades risen to become a stable food in Nigeria.
Mahesh Vaswani, group managing director of the Stallion Group, expressed optimism that the government of Nigeria would at this stage of the agreement scale up effort and effectively deal with the major obstacles towards rice production which includes access to rural infrastructure.
Vaswani said Stallion Group would in the future explore commercial farming of other crops under similar current arrangements with government. However, in order not to become a jack of all and a master of non, the Group would be focused to see to the success of the massive investments into rice production and make the country a major exporter of the product to other parts of the world.
Earlier Sunil Vaswani, chairman of Stallion Group, disclosed that the Memorandum of Understanding (Mou) signed with the government would further increase rice production in the country by 1.5 million metric tones per annum. He said the Group on its part would deploy the best modern farm practice including irrigation to deliver hybrid seeds to improve the country’s production capability and to also achieve export status within the West African sub region.
Vaswani said the Group viewed the partnership as a challenge and that it is determined to see the objective realized. While emphasizing the timely approach by farmers that would be involved in the initiative, he harped on the need for farmers to be availed the opportunity to access funds early enough.
Dr. Sayyadi Abba Ruma, minister of agriculture and water resources, while speaking at the ceremony in Abuja, noted that the present administration had resolved to deliberately promote rice production and flood the cities and villages with the product at the end of this year’s farming season.
Ruma disclosed that government had kick-started immediate revamping of infrastructure as a way of addressing the failure of its small scale businesses including cluster of rice mills in the country. According to him, government is committed to the provision of infrastructure for the country to achieve real agricultural development.
Also speaking, Tanimu Kurfi, chief economic adviser to President Umaru Yar’adua described the MoU as a welcomed move adding that it would save the country a huge some of money from the $5.5 billion spent annually on food importation.
BusinessWorld Intelligence can disclose that the initiative involving the investment of $35 billion by Stallion group into rice production, processing and fertilizer is aimed at actualizing part of the goals of the National Food Security Programme (NFSP) and making agriculture a major foreign exchange earner for Nigeria. Rice has in the last two decades risen to become a stable food in Nigeria.
Mahesh Vaswani, group managing director of the Stallion Group, expressed optimism that the government of Nigeria would at this stage of the agreement scale up effort and effectively deal with the major obstacles towards rice production which includes access to rural infrastructure.
Vaswani said Stallion Group would in the future explore commercial farming of other crops under similar current arrangements with government. However, in order not to become a jack of all and a master of non, the Group would be focused to see to the success of the massive investments into rice production and make the country a major exporter of the product to other parts of the world.
Earlier Sunil Vaswani, chairman of Stallion Group, disclosed that the Memorandum of Understanding (Mou) signed with the government would further increase rice production in the country by 1.5 million metric tones per annum. He said the Group on its part would deploy the best modern farm practice including irrigation to deliver hybrid seeds to improve the country’s production capability and to also achieve export status within the West African sub region.
Vaswani said the Group viewed the partnership as a challenge and that it is determined to see the objective realized. While emphasizing the timely approach by farmers that would be involved in the initiative, he harped on the need for farmers to be availed the opportunity to access funds early enough.
Dr. Sayyadi Abba Ruma, minister of agriculture and water resources, while speaking at the ceremony in Abuja, noted that the present administration had resolved to deliberately promote rice production and flood the cities and villages with the product at the end of this year’s farming season.
Ruma disclosed that government had kick-started immediate revamping of infrastructure as a way of addressing the failure of its small scale businesses including cluster of rice mills in the country. According to him, government is committed to the provision of infrastructure for the country to achieve real agricultural development.
Also speaking, Tanimu Kurfi, chief economic adviser to President Umaru Yar’adua described the MoU as a welcomed move adding that it would save the country a huge some of money from the $5.5 billion spent annually on food importation.
