This study was carried out to analyses the marketing margin for rice among participants in the marketing of rice in Adani Uzo-Uwani Local Government Area. A purposive sampling technique was used in the selection of respondents. The study identified and described the marketing of rice in the study area, the participants and their activities in the marketing of rice. It determined the cost of perfuming the physical functions of transportation, storage, processing and margin accruable to the participants (producers, wholesales and retailers). Problems of agricultural marketing were also identified to include production conditions, transportation and communication, handling packaging and processing, storage and warehousing institutional support input distribution; urban food supply system and price stabilization. This work sets out elements which make up an efficient marketing system to include functions and services, agencies and channels, the enterprises of which they are composed and the institutional framework within which they operate. The analytical tools used in this work included descriptive statistics such as frequency, percentage, mean, rage and market margin analysis. From he results it was affirmed that 28% of the producers have no formal education and 5% have HND/B.Sc. certificates. The age renege of producer and retailer is between 40 and 50 years and household size of between 6 and 10. Farming and marketing experiences of the respondents ranged from 40-50 years and they were mostly married. It was also found out that the marketing margin for 50kg bag of milled rice sold in the study area for the village merchant is N26, for the retailer N29, for the wholesaler N10, and for the producer N 68. The study identify source of supply (large numers of very small farms, each operating independently), Igrge number of middlemen, transportation, inadequate storage and warehousing facilities, forced sales, grading and standardization, adulteration and instability of prices as problems to the participants in the study area. Among the reduction of high cost of processing by provision of machinery and machinery spare parts, to increase farmers yield, maintenance of rural feeder roads using the mill for other purposes like cassava processing and the need proper grading and standardization.

Background of the Study
Agriculture has contributed immensely to the nation’s development. According to the Central Bank of Nigeria (1995), the contribution of agriculture to the nation’s gross domestic product in 1985 was 54.4%. Its role in food production, provision of raw materials for industries, as a major source of employment and income to a great number of the citizens of the country cannot be overemphasized. In recognition of this crucial role of agriculture in economic development, past governments have sought ways to increase domestic food production so as to alleviate food shortage and excessive high cost of food items, which have been a prevalent feature of many development countries.

The basic problem of Nigeria’s agricultural sector is high and rapidly increasing food prices, which are symptomatic of some deeply rooted structural problems. For example, the all cities composite consumers price index for food with 1960 as base rose from 216.6 in 1972 to 670.0 in December 1977 (Central Bank of Nigeria, 1980 and 1979). Thus food registered a higher rate of price increase than other items in the consumer’s budget. In 1979, the Federal Government spent the sum of N83,225,940, that is about 15% of her annual budget on agriculture out of the N5.2 billion capital expenditure. Out of N2.8 billion for current expenditure, Agriculture and rural development received N1,971, 170 that is about 69%, (Central Bank of Nigeria Annual Report 1986). In spite of this big amount allocated to agriculture, when compared to other sectors, there is no visible progress to justify the expenditure.

In order to attain agriculture policy objectives, programmes such as the National Accelerated Food Production Programme, the Agricultural Development Projects, River Basic and Rural Development Authorities, Operation Feed the Nation, the Green Revolution, Back to Land and Operation Food for All were launched. Associated with these programmes were support facilitates such as 18 agricultural commodity research institutes, 44 agricultural inputs and services units and the National Seed Services (Ogunrende, 1988).

Mention should also be made of the Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB). The Supervised Agricultural Credit Guarantee Scheme and Rural Banking Scheme Obeta, 1990. Yet agricultural policy objectives have not be achieved as evidenced by the general food scarcity in the country. Advancing reasons for this, Nnadozie (1983) stated that the declining contribution of agricultural sector is not is not a consequence of development; rather, it is as a result of neglect of agricultural Development.

Nigeria is endowed with rich agricultural land, estimated at about 71.2 million hectares, out of which 34 million hectare are under cultivation. The manpower and climate are adequate to support a variety of crops. But in spite of all these potentials, there is considerable gap between the estimated food supply and projected demand of major food items (Olayemi, 1985). Because of this shortage, Nigeria imports major food items.

Nigeria spends huge sum of money estimated at about N15 billion annually on importation of food (Newsletter publication 1985). T he same source reported that in 1975, the sum of N21.71 million was used to import....

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