Global rice price slump brings economic relief to Nigerian market

• Nigeria is benefiting from a planetary slump successful atom prices, with Indian, Vietnamese, and Thai atom export prices hitting multi-year lows
• Despite the terms drop, manufacture leaders foretell that prices volition stay unchangeable for the remainder of 2025 owed to surpluses successful cardinal exporting countries
• Nigeria continues to import rice, with a notable proviso of brownish atom from Thailand successful 2025, contempt tariff restrictions, arsenic the state works to code rising nutrient costs

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Nigeria is 1 of the main importers of atom and is present benefiting from a planetary slump successful atom prices, which person reached multi-year lows.

For the remainder of 2025, analysts foretell that the terms of atom volition enactment astatine this level. Photo Credit: FG
Source: UGC

Indian parboiled atom export prices deed a 22-month debased successful April, a period aft Delhi lifted the last export restrictions connected the atom imposed successful 2022, according to information gathered from a Reuters poll. In Vietnam, prices fell to astir five-year lows, portion successful Thailand, they dropped to their lowest constituent successful astir 3 years.

According to traders and manufacture leaders, prices person recovered a level aft plunging by astir one-third from their 2024 peaks. However, they are expected to stay astatine this level for the remainderof 2025, constrained by surpluses successful each important exporting nations.

“Even aft the caller important correction, we don’t expect a terms rebound. The proviso glut volition apt forestall prices from increasing,” said B.V. Krishna Rao, president of the Rice Exporters Association.

For the remainder of the year, the radical anticipates that prices for 5% breached atom volition scope betwixt $10 and $390 per ton.

“Prices volition stay astir the existent level unless the monsoon surprises and affects production,” said Himanshu Agrawal, enforcement manager astatine Satyam Balajee, a starring atom exporter.

Meanwhile, a survey by Legit.ng recovered that the terms of atom present merchantability betwixt N75,000 and N85,000 depending connected the brand. Some months ago, consumers had to person betwixt N85,000 to N95,000 to spend a bag.

Africa to payment from terms decline

Price-conscious customers successful Africa and different regions whitethorn payment from decreased atom prices, according to reports. However, farmers successful Asia, which produces astir 90% of the world's rice, volition apt spot their already debased profits further diminished.

Nigeria imported $7.26 cardinal worthy of atom successful 2023, ranking 158th successful the satellite for atom imports. These imports came chiefly from the United States, Thailand, Benin, the United Arab Emirates, and India.

India ($5.9M), the United Arab Emirates ($743k), Thailand ($307k), Benin ($101k), and the United States ($95.4k) were Nigeria's apical atom importers successful 2023. Between 2022 and 2023, Nigeria's atom imports from India ($2.87M), the United Arab Emirates ($291k), and Thailand ($119k) grew astatine the fastest rates.

Vietnam, Thailand, and India's atom export prices are declining arsenic a effect of accrued contention owed to India's determination to licence exports of each grades. In 2025, India's state-run upwind bureau predicts above-normal monsoon rainfall for the 2nd twelvemonth successful a row, which volition summation output.

Brown atom inactive being imported

The Nigeria Customs Service (NCS) announced connected January 20, 2022, that the Federal Government had prohibited the importation of parboiled atom done the nation's seaports. However, according to sources, the federation received a proviso of brownish atom successful January 2025 arsenic portion of its efforts to code the rising costs of nutrient that are putting unit connected consumers.

According to the logistics institution DUCAT, which organized the transport, a consignment of 32,000 tons arrived successful Lagos. Following the imposition of a tariff embargo connected wheat, corn, rice, and different nutrient commodities past year, the atom from Thailand was brought in, according to DUCAT.

Nigeria ranked 158th successful the satellite for atom imports successful 2023, bringing successful $7.26 million. Photo Credit: Contributor
Source: Getty Images

Purchases person mostly remained restricted contempt the tariff waiver retired of interest for section producers.

“Nigeria has been moving hard to find solutions to broaden and fortify its nutrient proviso accessibility,” DUCAT Chief Executive Officer Adrian Beciri said successful a statement.

Dealers clang terms of atom by N20,000 per 50kg bag

Legit.ng reported that the terms of rice, a staple food, has crashed again after rising successful March to implicit N80,000 per 50kg bag.

Findings by Legit.ng showed that sellers reduced the commodity terms from N85,000 per 50kg container to N65,000 arsenic of Sunday, April 13, 2025.

Dealers who spoke exclusively with Legit.ng stated that the clang followed the wide clang successful cereal prices and different nutrient items.

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng