The price of rice has risen again after a brief fall in December 2024 and January 2025 as dealers blame various factorsFindings show that a 50kg bag of rice, which dropped to between N65,000 and N67,000 in December has risen to N75,000Importers blame exchange rate volatility and uncertainty of import duty for the rise in prices
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The price of rice has risen again after crashing during the Christmas and New Year holidays.
Feelers show that the price of the commodity, which sold for between N65,000 and N67,000 per 50kg bag, rose again, causing panic in many households after a brief respite.
Rice dealers hike prices again after Christmas, blaming exchange rates.
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Rice prices skyrocket again
Findings show that the price of a 50kg bag of imported Indian short grain, which crashed from N90,000 in December to N65,000 and N67,000 has risen to about N75,000, with traders speculating further rise.
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Imported Thai grain, which sold for as high as N100,000 during the December period dropped to N88,000 and N89,000 in January.
However, the price has skyrocketed to N92,000 and N105,000, depending on the brand.
Locally produced rice has also risen in price as 50kg Bull rice sells for N85,000 to N90,000, while Abakaliki rice sells for N85,000 and N90,000 in major cities across Nigeria.
Several Nigerians attributed the crash in prices in January to the naira’s value, which surged from N1,600 per dollar to N1,475.
Surveys around popular markets in Lagos show that importers attributed the brief fall in rice prices to the strengthening of the local currency and better land border conditions.
Rice production drops
The Nation reports that rice production dipped in the 2024/2025 season to 5.23 million metric tons from 5.61 million metric tons experienced in the 2023/2024 season.
That is according to data from the United States Department of Agriculture (USDA), with one report estimating that the dip could be between 15 and 23%.
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The data shows that figure is the lowest Nigeria has seen since 2020 when the COVID-19 pandemic halted farming.
Farmers disclosed that rice earnings and profits are affected by the rising cost of inputs, with insecurity, climate change, and the import of cheaper foreign grains affecting agro-based companies from making a profit.
In 2024, the Nigerian government suspended the Anchor Borrowers Programme, which was touted as an initiative that boosted rice production in the country.
Importers blame exchange rates
The government alleged fraud as the reason for halting the initiative, saying farmers were not repaying their loans.
According to reports, millers blamed the shortfall in production and rising input costs as paddy rice prices soared by 10% to N70,000 and N80,000 per 80kg bag.
Chiwendu Chikwere, a rice wholesaler in Lagos said the current crash in exchange rates is affecting importers.
He disclosed that sourcing forex for imports is as hard as paying Customs levy which fluctuates daily due to exchange rate volatility.
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“Importers are in limbo regarding the exchange rate. Most times, you don’t know how you can get the exchange rate for imports. So, importers are left speculating and that leads to inflated prices.
Also, import duties are not pegged. Import duties are tied to exchange rate volatility, making it difficult for importers to plan,” he said.
Report predicts the price of local rice in 2025
Meanwhile, Henzodaily.ng earlier reported that the price of locally produced paddy rice is expected to rise by about 55% during the 2024/2025 season, worsening high living standards.
A new report by Afex Wet Season Crop Production 2024 shows a steady increase in rice prices.
The report says that during the season under review, rice prices rose 78%, with the average price hitting N630,000/MT.
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Source: Henzodaily.ng