FACAN cries against agricultural export ban

Cross Section

The Federation of Agricultural Commodities Association of Nigeria (FACAN )has sent a passionate plea to the all concerned government quarters to take speedy action against the United Nation’s decision to ban any agricultural produce that is not bagged in a hydrocarbon-free bag so that the umbrella body for all the commodities association could embark on importing jute bags made of kenaf pending when they will be available in mass production in the country.

This call, according to our source who spoke on condition of anonymity,  is coming on the heels of United Nation’s plan to execute its ban of agricultural produce that is not properly bagged in jute bag, which the association feels might hinder the FG policy decision to diversify the economy from oil to commercial agriculture with accelerated crops and livestock production that will sufficiently feed the nation and give room for export to the other parts of the world, especially where premium prices are paid for a standard produce.

 Said the source:“The United Nations have wrapped up plans by January 2018 to do away with any agricultural produce  not bagged with jute bag ( that is internationally certified as hydrocarbon free bag with ability to absorb fresh air that will reduce heat or moisture on the produce before arrival  at destination of need) coming from Nigeria. This is why our association is calling on the Federal Ministry of industry, Trade and Investment to allow FACAN to start embarking on importation of jute bags pending the time when the nation would have been able to produce enough that will checkmate import”

It was further gathered that FACAN has entered into an agreement with two international jute bag corporations in partnership with Jaiz bank, so as to ensure availability and that about N350, 000,000 would be provided by the partnering bank while FACAN is to provide N20, 000,000.

It was gathered that series of letters and interactions between the FG and FACAN on the need for Nigeria to start preparation for the 2018 deadline through sourcing from a cheaper alternative source for jute bags that will checkmate the proposed ban.

In one of the letter sent to Federal Ministry of  Industry, Trade And Investment which a source in the ministry confirmed was said to have intimated  the government on the need to expedite action that would ensure the availability of jute bags stating that: “ the current international standard and practices in the use of hydrocarbon free jute bag for packaging of agricultural commodities, leaves Nigeria with no option but to start the implementation of the policy before the commencement of the 2018 deadline”

“There is the need for FACAN to take advantage of the implementation policy through the importation and distribution of jute bags to members as there are no credible sources of the bag at a fair price currently in the country. The importation of the jute bags by FACAN will provide the following benefits and advantages in general. It will afford Nigeria to comply with international standard on packaging of commodities and bring about improvement on the quality of export produce; improve the shelf life of agricultural produce produced locally as jute bags extend the shelf life for one month beyond that of polypropylene bags. Revenue of farmers will be increased as wastages will be reduced by about 5%”

Likely to be affected if immediate actions were not taken are cocoa beans, soybeans, ginger, cashew seeds, sesame seeds, gum Arabic, cotton and coffee, according to our source who said the government must be prepared against this action before it becomes too late.