Indian Firm to Open US$15m Rice Factory in Nigeria

The Managing Director of Ofada Veetee Company, Mr Devinder Mehan, Sunday said that the US$15-million rice milling factory located at Itori, Ewekoro Local Government Area of Ogun State in southwestern Nigeria, would go into operation by September this year.

Mehan, an Indian expert, told journalists in Abeokuta, about 700km from Abuja that the firm would source paddy, the major raw material, from local farmers.

“On sourcing of paddy, Veetee will provide the group of farmers with an assured market for the selected varieties of rice and we will encourage them by guaranteeing purchase of their produce at best market price.”

Mehan said that the factory was set up under a tripartite arrangement involving the Nigerian federal government, the Ogun state government and the Veetee Group with the majority shares.

According to him, the factory, when fully operational, will provide job for about 500 persons.

Construction work at the factory is at an advanced stage as milling machines have been moved in for installation.

The Technical Manager, Mr Amarjeet Chaudhary, said that the factory would start production with a turnover of 200 tonnes of polished rice daily and that production would be expanded to 400 tonnes and later to full capacity of 600 tonnes daily.

Source African Press Agency

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