The price of a 50kg bag of rice has fallen to N58,000 in some parts of Nigeria, particularly in remote areas, as imports from the Republic of Benin have surged, according to a report by S&P Global. The report highlights that the West African parboiled rice market has reached a near two-year low due to the influx of supplies into regional markets following India’s removal of export duties on parboiled rice.
The cost of a 50kg bag of rice has dropped from N80,000 to N58,000 because of increased imports of rice from Benin Republic, which receives rice from India. Platts, a part of S&P Global Commodity, reported that the influx of lower-priced rice from India has filled warehouses in Benin, according to market participants.
Between September and December 2024, India is said to have exported about 2.11 million metric tonnes of parboiled rice to West Africa, a sharp increase from 720,000 metric tonnes during the same period in 2023. The Agricultural and Processed Food Products Export Development Authority stated that India exported a total of 5.35 million metric tonnes of parboiled rice to West Africa in 2024, up from 3.9 million metric tonnes in 2023.
A trader based in Togo remarked that the current market situation in most of West Africa is quiet and bearish. As Nigeria, the largest rice market for Benin, continues to illegally import rice, prices for both local and imported rice have fallen in the past two weeks. The price of a 50kg bag of local rice has dropped from N80,000 or N90,000 to N60,000, while Indian-imported rice prices have fallen to N80,000.
Despite the price drop, demand has not increased accordingly. As prices continue to decline, buyers are adopting a cautious approach, waiting for prices to stabilise before making purchases. A trader in Benin noted that demand would likely increase around September, as the Christmas season approaches.
Nigeria remains the major consumer of rice imported into Benin, and in border communities in Ogun, rice prices are under N50,000 due to their proximity to Benin. Despite the ban on rice imports, the commodity remains the most smuggled product, with the Nigerian Customs Service struggling to control the situation.
