50kg rice price dropped to N58,000 in Nigeria — Report

The price of a 50kg bag of rice has decreased to N58,000 in some parts of Nigeria, notably in remote areas, due to imports from the Republic of Benin, according to an S&P Global analysis.

According to the research, the West African parboiled rice market has fallen to a near two-year low as supplies flood regional markets following India's abolition of parboiled rice export duties.

A 50kg bag of rice has plummeted from N80,000 to N58,000 as a result of the commodity's entry into nearby Benin Republic, from which it enters Nigeria.

According to Platts, a division of S&P Global Commodity, the influx of lower-priced rice from India has filled Benin warehouses to capacity, according to industry participants.

Between September and December, India was anticipated to have delivered over 2.11 million metric tons of parboiled rice to West Africa, up significantly from 720,000 metric tons in the same period in 2023.

According to the Agricultural and Processed Food Products Export Development Authority, India's total exports of parboiled rice to West Africa will reach 5.35 million metric tonnes in 2024, up from 3.9 million in 2023.

Commenting, a Togo-based trader remarked that the current situation in virtually every region of West Africa is the same: quiet and bearish.

Nigeria, Benin's major rice market, has seen both domestic and imported rice prices fall in the last two weeks as the country continues to illegally import rice from Benin.

It was reported that the price of a 50kg local rice had reduced from N80,000 or N90,000 to N60,000, while the price of Indian imported rice had dropped to N80,000.

"Despite the price decrease, demand has not increased proportionally. With prices falling on a daily basis, customers are being cautious and waiting for prices to stabilize before making purchases, according to the research.

A Benin-based merchant predicted that demand would only rise once the Christmas season began in September.

According to our source, Nigeria is the largest consumer of rice imported into Benin Republic.

Due to their close proximity to the Benin Republic, border villages in Ogun sell the staple for less than N50,000.

Despite the restriction on rice imports, the item remains the most trafficked, with the Nigerian Customs Service spending sleepless nights chasing rice traffickers.