Dealers track farmers door-to-door to buy grains

Since the beginning of harvest weeks ago, various grains markets across the country have continued to witnessed increased trading activities.

Weekend Trust gathered that in some instances, grains dealers, merchants and their agents track farmers to villages and peri-urban areas to purchase produce from them.

In Niger State, findings by Weekend Trust revealed that maize which is the most accessible grain in most markets due to the fall in the price was sold for N42,000, N45,000 and N48,000 per 100kg bag in various markets.

In Gunu market on Tuesday, traders told our correspondent that buyers trooped in from various places to buy in large quantities at the cost of N45,000 and N48,000 depending on how dried it was while a mudu cost N750 and N800, also depending on how dry it was.

One of the traders, Lami Iliyasu, told Weekend Trust that old maize was no longer in the market, saying “All the maize we see now are new ones. What makes the price vary is how the farmer dried it before bringing it to the market.”

Though they declined talking to our correspondent, some middlemen were seen loading bags of maize in pick-up vans while some were seen stopping farmers at the market gate to buy directly from them at Gunu market on Tuesday.

Some traders, however, told Weekend Trust that there was also panic buying from households for fear that the price may go up  in the coming weeks due to high demand, following the rising cost of other alternative food items such as semovita, rice, guinea corn and millet.

Checks at the Kure Ultra-Modern Market Minna showed that the price of a bag of semovita was N17,500, which many households claimed was beyond their reach.

Also, local rice went for N150,000 per 100kg bag while sorghum was sold at Gunu market on Tuesday at the cost of N84,000 per 100kg bag.

Poultry farmers who engage in local production of feeds are also reportedly rushing to the markets, with some depositing money with traders who in turn buy for them from farmers on market days.

Middlemen reportedly come from states like Sokoto, Kano, Zamfara, among others.

A trader in Lapai Market, Mahmud Adamu, told our correspondent that buyers come mostly from states experiencing insecurity to take home to resell.

“I know that buyers come from Zamfara State to buy in bulk. Some buyers do not actually intend to hoard but to go and resell. In Zamfara for example, you know most farmers have been denied access to their farms by bandits and this is causing scarcity of foods. So, the buyers from Zamfara buy to resell at home immediately,” he said.

In Agaie weekly market, traders told our correspondent that buyers come from Sokoto and Kano to buy directly from farmers at N700 per mudu and N42,000 per 100kg bag to take back home to resell.

Checks in Bida, Zungeru, Batati and Lemu markets in Bida, Wushishi, Lavun and Gbako LGAs revealed that farmers sell directly to middlemen at N800 per mudu and N48, 000 per 100kg bag on market days.

Weekend Trust also gathered that the price of pepper has not reduced despite the harvest.

At Tungan-Goro Market in Minna, farmers sell 50kg bag of pepper to middlemen from Lagos and other states at the cost of N22,000.

In Kano State, reports indicated that processors and grain merchants are trying to outshine each other in mopping up grains from markets and farms.

The state chairman All Farmers Association of Nigeria (AFAN), Alhaji Abdulrasheed Magaji Rimingado, told our correspondent that major grain marketers and some processors have deployed their agents to some major grain markets in the state to buy off farm produce from farmers.

“They trace farmers to their farms and buy off everything from them at a very cheap price. Reports show that some of these business people even pay for produce before harvest,” he said.

A grain merchant at Dawanau International Grain market, Alhaji Usman Bello Gwagwarwa, told our correspondent that many of his colleagues have travelled to Taraba, Benue and Adamawa states to buy fresh farm produce from farmers. He explained that most of them are working for bigger marketers who have disbursed huge amounts of money to them.

“The reason we wouldn’t have a reasonable drop in prices of food items because merchants have invaded grain markets and farms to buy directly from the farmers, thereby creating artificial scarcity in most of the markets,” he said.

In Katsina State, grains merchant say there is no business as profitable as dealing in farm produce.

Muhammad Awaisu, a produce merchant who transports his goods to Niger Republic, said the middlemen in the markets are classified into two – brokers and dealers.

“The brokers mostly have no capital; they only bargain with the farmers when they bring produce to the market and afterwards call the merchants to pay and they get their commission. On the other hand, the dealers have their capital and buy goods directly from the farmers or through brokers; they may store it for some time or sell instantly to the merchants,” he said.

This, according to Awaisu, is applicable to almost all the grains in the markets, especially paddy, soybeans, maize and beans.

He added that the activity of the middlemen in the markets is one of the factors affecting the prices of the produce, especially with their numbers increasing every year.

“A broker, who has no capital and earns commission per bag after he facilitates its sales, can go home with at least N10,000. That of dealers depend on their capital and on what produce they deal in,” said Muhammad Awaisu.

Mohammed Tarzana, a produce broker at Bakori market, said some merchants who operate in different markets within and outside the state rely on brokers to purchase goods from them.

“At the eve of harvest, if a broker is trustworthy, a merchant can give him millions of naira to purchase grains for him. There is this notion that brokers know bag sizes better and can easily detect ones that are less than 100kg no matter how they are manipulated,” he said.

Tarzana added that lack of employment opportunities in different sectors of the economy made youths to troop into local markets and operate as grains brokers.

“The trend has resulted in the high cost of the produce and prevented farmers from selling their goods at premium price. However, one cannot completely go against it as the youth have found an avenue to make a living,” Muhammadu Tarzana stated.

Sani Adam, a produce dealer in Funtua, said at the market’s prime period, a farmer sells his goods to a broker, a broker then sells to the dealer who will decide whether to sell to merchants or store it for future sale.

“It is clear that farm produce would not be as cheap as most people think in this harvest period because many of us are out to stockpile the produce in order to maximise profit in future; this trend can only be altered if government sets up agric produce marketing boards which will set the price limits of essential farm produce,” he said.

In Jos, the Plateau State capital, middlemen who said they have been in the business in Katako market for long, said they are not responsible for the hike in price of the grains, explaining that availability of the grain often determines their prices.

Abdullahi Sani Hassan, a middleman in the market, said “People always say bad things about us but it is not true. If we are doing that, it means that the seller will bring the grains and sell it himself without waiting for any middlemen.

“There is a way our business works. It is when the grain is sold that we will be paid. So, we cannot just cause price hike because of our selfish interest. The number of bags sold determines how much money you earn. We have rules and regulations as well as a union in the market. We also follow our laid down principles and the union will never allow any middleman to increase prices anyhow. If you insist that the grain must be sold at a high price, people will not buy. People should say what they know,” he added.

Sani Waziri, another middleman in the market said, “A middleman cannot determine the price of the grain. The price is always determined by the market itself. Last month, a bag of maize was sold at the rate of N90, 000 but today, with the arrival of the new one, a bag is sold for between N55,000 and N57,000. Who now reduced the price? Is it the middleman or it is the market that determined that?” he asked.