N10.7bn Rice Mill: FG Signs Pact with MV Agro Engineers

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From: AgroNature Admin

 

The Federal Government on Monday signed N10.7 billion agreement with MV Agro Engineers Ltd to manufacture and supply 10 integrated rice milling machines to 10 states across the country.

The machines are expected for delivery in 18 months.

Minister of Agriculture and Rural Development, Chief Audu Ogbeh, at the agreement signing in Abuja said the credit to fund the project would be repaid by the Bank of Agriculture in 10 years.

He said the the benefitting states would are expected to make 10 percent payment and should indicate technical capacity to own and operate a mill.   

The 10 participating states include Kaduna, Anambra, Kogi, Benue, Bayelsa, Niger, and Bauchi. Others are Kebbi, Ogun, Zamfara while the mills are expected to produce 100 tons per day.

The Bank of Agriculture (BoA) is expected to take over the loan repayment in the next 10 years.

“As these people arrives, they will install these mills and the BoA will take over the loans repayment over a period of 10 years,” Ogbeh said.

He noted that there are about 16 existing large rice mills from the procured 100 mills.

The Minister of State for Agriculture and Rural Developement, Heineken Lokpobiri, Agriculture Minister, Chief Audu Ogbeh, the Permanent Secretary, Bukar Hassan among other dignitaries at the agreement signing in ABUJA

The minister said 16 large machines would mill 100 tons of rice paddy daily while others could mill about 300 tons daily.

“Dangote just brought in 10 milling machines which will produce 1 million tons of rice per annum but there are smaller ones we gave out, about 200 mills of 10 tons and 20 tons per annum operating in villages and small corners equipped with the stoners.

“We are buying smaller mills and giving them out because the smaller mills produce more rice than the big mills added up but they are scattered all over the country. Virtually every state has small rice mills somewhere, Niger, Bayelsa, Benue, Taraba, Adamawa, Ebonyi, Katsina and Jigawa,” he stated.

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