Price of rice drops again by 28%, Traders confirm new prices

• More nutrient prices are dropping successful Nigeria owed to a operation of factors, ranging from authorities involution to smuggling activities
• Reports amusement that the terms of Nigeria's astir fashionable staple food, rice, has crashed again
• The traders besides confirmed this driblet successful terms and commented connected the request for the merchandise amid the terms decline

Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.

Nigerians can expect much reprieve successful the coming weeks arsenic marketplace surveys amusement that prices of cardinal nutrient items are inactive going down.

Rice, touted to beryllium 1 of the astir commonly eaten foods successful Nigeria, is becoming much affordable again, and reports amusement that the terms has crashed by up to 28%.

According to a study by S&P Global, a 50kg container of atom present sells for astir N58,000 successful immoderate parts of Nigeria, peculiarly the distant areas.

As much of the products enters the market, forces of request and proviso travel into play, pushing prices lower. Photo credit: Picture alliance/Contributor
Source: Getty Images

This is simply a large driblet from the N80,000 it sold for successful March, and the N65,000 it sold for a mates of weeks ago.

India’s removal of duties triggers terms crash

According to the S&P Global report, West Africa’s markets person been flooded with parboiled atom pursuing India’s removal of export duties connected parboiled rice.

With the lack of duties connected the commodity, the state is massively exporting the merchandise into West Africa, with warehouses successful the republic of Benin reported to beryllium filled.

Reports amusement an export of 2.11 cardinal metric tonnes (MT) of parboiled atom from India to West Africa successful Q4, 2024, astir a 200% summation from the 720,000 MT exported successful Q4, 2023.

Agricultural and Processed Food Products Export Development Authority reports that for the full of 2024, India exported 5.35 cardinal MT of parboiled atom to West Africa, a important summation from 3.9 cardinal MT successful 2023.

Meanwhile, Nigeria's authorities is acceptable to present the National Agribusiness Policy Mechanism (NAPM) to boost cultivation output, stabilize food prices, and stimulate economical growth.

Traders talk astir the terms drop

The traders property this driblet successful terms to a precocious influx of the commodity from neighboring countries, including the Republic of Benin.

A Togolese atom trader confirmed to the PUNCH that the concern extends beyond Nigeria to astir each countries successful West Africa.

As Nigeria continues to import atom from the Republic of Benin, some legally and illegally, the prices of section and imported atom stay connected the decline.

The traders explained that section atom present sells betwixt N58,000 to N60,000 for a 50kg bag, portion Indian imported atom sells astir N80,000 per bag.

For borderline communities similar Ogun state, the terms of the 50kg atom is beneath N50,000 present owed to the influx from the Republic of Benin.

Demand remains debased contempt driblet successful price

Amid the terms drop, request has remained low, raising concerns astir the diminution successful purchasing powerfulness of Nigerians and their inability to spend bully meals.

A caller study suggested that Nigerians whitethorn beryllium presently spending each their income connected food, with immoderate families present skipping meals to get by.

The smugglers determination these commodities crossed Nigerian borders from Benin republic into Nigerian markets. Photo credit: Nigeria Customs Service
Source: UGC

The S&P Global study postulated that buyers whitethorn beryllium waiting for prices to stabilise earlier making their purchases.

Traders besides stay optimistic that request volition summation by the 4th fourth of the twelvemonth erstwhile Christmas comes into focus.

Rice remains the astir smuggled merchandise successful Nigeria

In related news, Legit.ng reported that atom was fig 1 connected the Nigeria Customs Service database of smuggled items.

For the archetypal 4th of 2025, implicit 135,000 bags of rice valued astatine astir N1 cardinal were seized from aggregate smuggling operations.

The work has intensified efforts to clamp down connected atom smugglers and springiness section producers a warring chance.

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Source: Legit.ng