The price of a 50kg bag of rice has dropped to N58,000 in some parts of Nigeria, particularly around remote areas, amid imports from the Republic of Benin, a report by S&P Global has said.
The report said that the West African parboiled rice market has slumped to a near two-year low as supplies flood into regional markets following India’s removal of export duties on parboiled rice.
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.
Our correspondent reports that Nigeria is the major consumer of rice imported into the Benin Republic.
In border communities in Ogun, the staple sells at prices below N50,000 due to the proximity of their communities to the Benin Republic.
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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