The cost of a 50kg bag of rice in Nigeria has dropped significantly to around N58,000 in some areas, particularly in remote locations, according to a new report by S&P Global.
The report highlighted that the West African parboiled rice market is currently facing a major slump, reaching its lowest point in nearly two years, due to an oversupply of rice from India.
India’s recent decision to lift export duties on parboiled rice has triggered a surge in supply across West African markets, leading to a sharp decline in prices.
Previously, a 50kg bag of rice sold for approximately N80,000 in Nigeria. However, the influx of cheaper rice through the Benin Republic has caused a notable price crash.
According to Platts, a division of S&P Global Commodity, warehouses in Benin are now packed with Indian rice.
Between September and December 2024, India exported around 2.11 million metric tonnes of parboiled rice to West Africa, compared to 720,000 metric tonnes during the same period in 2023.
For the entire year 2024, India’s exports to the region reached 5.35 million metric tonnes, up from 3.9 million metric tonnes the year before.
A trader in Togo described the West African market as “quiet and bearish,” pointing out that despite lower prices, many buyers are holding back, waiting for further stabilisation before making large purchases.
In Nigeria, where rice remains a staple food, both local and imported rice prices have dropped over the past two weeks.
Local rice now sells for between N58,000 and N60,000 per 50kg bag, while imported Indian rice is priced around N80,000.
In border communities like those in Ogun State, prices are even lower, with some areas offering a 50kg bag for less than N50,000, thanks to their proximity to the Benin Republic.
