The Impact of Transportation Cost on the Price of Agricultural Commodities in Delta and Rivers States, Nigeria

The unabated increase transportation costs and its impact on agricultural commodity prices in Delta and Rivers States, Nigeria has been a source of concern to the stakeholders in the agricultural sector who believed that increase in price of agricultural commodities poses a threat to individual purchasing power and subsequently, could lead to low standard of living and poverty. Therefore, this study is to examine the impact of transportation cost on price of agricultural commodities in Delta and Rivers States Nigeria. The study employed survey research design using a structured questionnaire and key informant interview to source and analyzed for both qualitative and quantitative data on the subject matter. The sampled population of this study was 348. The primary data collected was analyzed using Multiple regression analysis. Findings of the study revealed that transportation cost has positive and statistically significant relationship with price of agricultural commodities. More so, that increases in government multiple tax, levies and unauthorized fee, bribery pay by drivers and cost of repairs and maintain vehicle have statistically significant impact on the price of agricultural commodities. Based on findings of this study, the following recommendation are suggested; that Nigeria Governments at all level in collaboration with drivers and market men and women leaders should formulate policies to discourage government multiple tax, levies and unauthorized fee, bribery pay. More so, policy measures focusing on maintenance of road and water ways should be implemented in order to reduce transportation cost and subsequently reduces price of agricultural commodities.