The price of a 50kg bag of rice has dropped to as low as ₦58,000 in parts of Nigeria, particularly around border communities, amid increased imports through the Republic of Benin, a new report by S&P Global has revealed.
The report said the West African parboiled rice market has slumped to a near two-year low as supplies flood regional markets following India’s removal of export duties on parboiled rice.
According to Platts, part of S&P Global Commodity Insights, warehouses in Benin are filled to capacity with lower-priced rice from India.
Between September and December 2024, India reportedly exported approximately 2.11 million metric tonnes of parboiled rice to West Africa, compared to 720,000 metric tonnes during the same period in 2023.
Overall, India’s parboiled rice exports to West Africa surged to 5.35 million metric tonnes in 2024, up from 3.9 million metric tonnes in 2023, according to the Agricultural and Processed Food Products Export Development Authority.
Nigeria’s Market Hit by Price Crash
The influx has had a notable impact on Nigeria, the largest rice consumer in West Africa.
Prices for a 50kg bag of local rice have dropped from ₦80,000–₦90,000 to around ₦60,000, while imported Indian rice now sells for about ₦80,000 per bag.
In border communities, particularly in Ogun State, rice is reportedly selling for less than ₦50,000 per bag due to the easy flow of smuggled goods from Benin.
Demand Remains Weak Despite Price Fall
Despite the sharp decline in prices, demand has remained sluggish.
“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 S&P Global report stated.
A rice trader based in Togo also noted that markets across West Africa are generally quiet and bearish at the moment.
Market watchers predict that demand could pick up closer to the Christmas season, around September, when household consumption traditionally rises.
Smuggling Continues Despite Ban
Although Nigeria maintains a ban on rice importation, the commodity remains the most smuggled item into the country, with the Nigerian Customs Service continuing to battle rice smugglers across border areas.
