Agric businesses in south-east shut down over high cost of diesel, says NCCIMA

The Nsukka Chamber of Commerce, Industries, Mines and Agriculture (NCCIMA) says businesses in the south-eastern area of the country are dying due to the high cost of diesel.

Dan Ochi, director-general of the chamber, disclosed this in an interview with NAN in Enugu on Friday.

Ochi, who doubles as the managing director of Global Farms, said the worst affected were the tomatoes and pepper producers who depended on diesel for irrigation purposes.

He also said companies that were into the production of fresh tomatoes, yellow, and red pepper, popularly called ‘Nsukka pepper’, had closed their business and rendered many jobless.

“We have stopped the production of our tomatoes and pepper because we can no longer run our irrigation machines at the current pump price of diesel,” NAN quoted Ochi as saying.

“Our business started when the pump price of diesel was N200 but it is over N800 now and this does not in any way support business.

“We have a greenhouse farm with an irrigation system where we produce tomatoes and pepper both in rainy and dry seasons.

“We supply to processing organisations. Sometimes we dry them and sell them locally. We pump water from 650 feet deep because water is a major raw material for the production.”

According to Ochi, no amount of effort can make one break even at the current high cost of diesel.

“We were producing one metric ton every month but most of our workers have been asked to go home,” he added.

“The business environment in the south-east is poor. The road infrastructure is deplorable, coupled with extortion by various security agencies on the road.

“All these add up to increase the total cost of the goods.”