Nigerians can expect more reprieve in the coming months 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 rural areas.
This development, according to a new report by S&P Global, comes amid increased rice imports from the Republic of Benin.
The report said that the West African parboiled rice market has gone down to a near two-year low as supplies flood into regional markets following India’s removal of export duties on parboiled rice.
A 50kg bag of rice, News Band understand, has dropped from N80,000 to N58,000 as a result of the influx of the commodity to neighbouring Benin Republic, from where it enters Nigeria.
S&P Global Commodity, reports that the influx of lower-priced rice from India has filled warehouses to capacity in Benin.
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.
But speaking, 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.
In border communities in Ogun, the staple sells at prices below N50,000 due to the proximity of their communities to the Benin Republic.
Meanwhile, 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.
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