The price of a 50kg bag of rice has dropped significantly to N58,000 in parts of Nigeria, following a surge in rice imports from the Republic of Benin, according to a new report by S&P Global.
The West African parboiled rice market has plunged to a near two-year low after India removed export duties on its parboiled rice, leading to an influx of cheaper rice into West Africa. Consequently, the price of a 50kg bag of rice in Nigeria has fallen from between N80,000 and N90,000 to as low as N58,000, particularly in remote areas and border communities.
Platts, a division of S&P Global Commodity, reported that warehouses in Benin are filled to capacity due to the heavy arrival of lower-priced Indian rice. Between September and December 2024, India exported approximately 2.11 million metric tonnes of parboiled rice to West Africa, compared to 720,000 metric tonnes in the same period in 2023. For the full year 2024, exports rose to 5.35 million metric tonnes, up from 3.9 million metric tonnes the previous year, according to the Agricultural and Processed Food Products Export Development Authority.
A trader based in Togo described the West African rice market as “quiet and bearish,” a sentiment echoed across the region as prices continue to slide. In Nigeria, both local and imported rice prices have dropped sharply in the past two weeks, with local rice now selling for about N60,000 for a 50kg bag, and Indian imported rice at about N80,000.
Despite the price reductions, demand has remained subdued, with buyers reportedly adopting a wait-and-see approach amid expectations of further price drops. Traders anticipate that demand could rebound around September as preparations for the Christmas season begin.
Border communities in Ogun State have seen even steeper price drops, with rice selling for under N50,000 per 50kg bag, due to their close proximity to Benin.
Meanwhile, despite the federal government’s continued ban on rice importation, rice remains the most smuggled commodity into Nigeria. The Nigerian Customs Service continues to struggle against rampant rice smuggling, even as local markets experience an oversupply of the staple food.
Nigeria remains the largest consumer of rice entering the Republic of Benin, underlining the persistent challenges facing the nation’s agricultural and trade policies.
