Rice miller commends CBN over Anchor Borrowers Programme

The Chairman, Ebony Agro Industry Limited, Engr. Charles Ugwu has commended the Central Bank of Nigeria (CBN) for sustaining Rice milling business in the country.

Engr. Ugwu made the commendation on Friday, September 29, 2016, when Finance Correspondents and Business Editors under the aegis of Finance Correspondents Association of Nigeria (FICAN) visited the mill in Ikwo Local Government Area of Ebonyi State.

Chief Ugwu told the visiting FICAN members the history of the mill. He recounted that Ebony Agro Industry was one of the 17 rice mills intended to be established by the Federal Government of Nigeria in 2008 due to the recorded food shortage occasioned by the global economic meltdown.

He added that due to policy reversal and challenges of infrastructure such as power, road and finance, only four of the mills were eventually established.

Ugwu further said that the stringent measures put in place by the Deposit Money Banks (DMBs)to obtain loans would have scuttled the project but for the intervention of the Central Bank of Nigeria. He commended the CBN for providing the start-up funds through the Commercial Agriculture Credit Scheme (CACS) and the Anchor Borrowers Programmed which he said was helping farmers to realise their dreams.

The Ebony Agro Industry Chairman lamented the inadequate paddy and high cost of running the mill as major challenges. He said these challenges threaten the existence of the mills. He said rice mills become profitable when it runs continuously without interruptions or shutting down operations. He, however, expressed optimism that with consistency with the policy restricting the importation of rice into the country, more investments in rice cultivation and production would be made, and there would soon be a drop in the current market price of rice.

He added that Ebony Rice is adjudged the best in the country at the moment.