By George Mwangi

Special to Dow Jones Newswires

Nigeria's sugar production is forecast to remain flat in the marketing year beginning May 2022 through April 2023, compared with the prior year, according to the Agriculture Department.

"This is due to the country's ineffective crushing capacity over the past 12 months," the USDA said in its latest Nigeria annual sugar report.

Internal security across the country is a serious challenge to agricultural activities especially in the sugarcane production belt states, it added.

The cost of sugarcane production is higher in Nigeria due to the absence of infrastructure, the USDA said.

"Investors bear the cost of constructing roads, dykes, airstrips, and installing irrigation systems," it said. "Sugar companies are also challenged by their inability to access foreign exchange required for importing machinery and equipment."

In 2022-2023, Nigeria's sugarcane production is expected to increase by 23% to 1.62 million tons in the crop year beginning November 2022 to October 2023 compared with the current year, the USDA said late Thursday.

"The increment is due to maturation of new varieties and high-quality sugarcane," according to the department. "Currently, smallholder farmers produce a larger quantity of the sugarcane crop in Nigeria while commercial plantations are investing in new varieties and land acquisitions."

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(END) Dow Jones Newswires

May 24, 2022 05:17 ET (09:17 GMT)

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