‘Price hike in markets needs regulation’

An expert from Michigan State University, USA, Dr Michael Adetayo Olabisi, has harped on the need to establish regulations that will oversee price hikes in commodities across markets.

He made the call at the 7th monthly industry talk hosted by the Centre for Dryland Agriculture, CDA, Bayero University, Kano.

Speaking on the issues of volatility, Dr Olabisi described how market linkages and price volatility have ravaged the Nigerian grain markets and, in turn, contributed to the major issues faced by communities.

“Food price volatility has been linked to child malnutrition, hits the food budget of poor households harder, destabilises price shocks and many other factors,” he said.

“The problems associated with price hikes are enormous and for that reason, the need to apply the principles of volatility should be of utmost importance.

“Thus, the middlemen may suffer but the way out should be of great concern,” he said.

Volatility is a formal measure of price hikes. Options for measuring it are broad – the number of price shocks is over a 10% threshold, he explained.

Also speaking on why the centre is holding the monthly industry talk, the director of the centre, Professor Jibrin Muhammad Jibrin, said the centre for dryland agriculture thought it wise to have this monthly lecture where the management invites experts to come and digest issues that are important to society. Volatility often refers to the amount of uncertainty or risk related to the size of changes in a security value.