Jubilation As Rice Prices Fall Massively
Nigerians are seeing some relief at the market as the price of a 50kg bag of rice has dropped to as low as N58,000 in certain parts of the country, especially in remote areas.
This development comes amid increased rice imports from the Republic of Benin, according to a new report by S&P Global.
The report highlights that the West African parboiled rice market has slumped to its lowest point in nearly two years. This follows India’s decision to remove export duties on parboiled rice, leading to a surge of supply into regional markets.
As a result, the price of a 50kg bag of rice, which previously hovered around N80,000, has now fallen significantly. Much of the imported rice enters Nigeria through neighbouring Benin Republic, offering a temporary ease for consumers grappling with high food prices.
Experts, however, caution that while the price drop brings short-term relief, Nigeria’s reliance on imported staples could pose challenges for local rice farmers and long-term food security
Platts, part of S&P Global Commodity, reports that the influx of lower-priced rice from India has filled warehouses to capacity in Benin, according to market participants..
Between September and December, India was said to have exported approximately 2.11 million metric tonnes of parboiled rice to West Africa, up sharply from 720,000 metric tonnes in the same period of 2023.
According to the Agricultural and Processed Food Products Export Development Authority, in 2024 as a whole, India exported 5.35 million metric tonnes of parboiled rice to West Africa, up from 3.9 million metric tonnes in 2023.
Commenting, a trader based in Togo said the current situation in almost every region of West Africa is the same, quiet and bearish.
As Nigeria, the largest rice market for Benin, continues to illegally import rice from Benin, both local and imported rice prices in Nigeria have plummeted over the past two weeks.
It was said that the price for a 50kg local rice had dropped from N80,000 or N90,000 to N60,000, while Indian imported rice prices have dropped to N80,000.
“Despite the price decline, demand has not risen correspondingly. With prices continuing to slide daily, buyers are adopting a cautious approach, waiting for stabilisation before making purchases,” the report said.
A trader based in Benin said demand was only likely to increase once the Christmas season comes into focus around September.
Our correspondent reports that Nigeria is the major consumer of rice imported into the Benin Republic.
In border communities in Ogun, the staple sells at prices below N50,000 due to the proximity of their communities to the Benin Republic.
Despite the ban on the importation of rice, the commodity remains the most smuggled product, even as the Nigerian Customs Service has sleepless nights battling rice smugglers
