…overstocked warehouses force down prices
As activities for the festive period take shape, local rice millers and traders have been affected by large stock in warehouses, thereby forcing down prices. Findings by New Telegraph revealed that local production in the current year peaked at 5.77 million tonnes of milled rice valued at N5.2 trillion ($3.58 billion) based on global market price.
According to Thai Rice Exporters Association (TREA), the price of rice at the global market is $409 per metric tonne. Besides, Nigerian farmers have achieved 9.4 million tonnes of paddy rice worth N.7 trillion, leading to a 28 per cent decline in price.
The latest report from the National Bureau of Statistics puts the food inflation rate at 13.12 per cent, marking a 26 per cent decline from 39.16 per cent in October 2024. According to the United States Department of Agriculture (USDA), national consumption surged to 7.66 million metric tonnes in 2024 alone, with imports reaching 2.4 million metric tonnes, up from 1.89 million in 2023. Also, a global trade portal, Index Mundi explained that rice import by the country has soared by 2.5 million tonnes, following crash in price in the global market.
Findings from Thailand Rice Exporters Association (TREA) revealed that the prices of grain had crumbled from N37,575 ($25) to N30,675 ($20) per 50-kilogramme bag due to over supply in the global market.
Recall that the S&P Global Commodity Insights said that rice prices in West African countries had fallen to their lowest levels in a year, weighed down by sluggish demand and excess inventories across key import hubs as parboiled rice now cost $409 per metric tonne CFR Cotonou on October 1, 2025 for December shipments.
The figure, it was learnt, represents a sharp $161 per tonne decline compared to the same period in 2024, underscoring the pressure on import-dependent markets in the region. It noted that the Port of Cotonou in Benin had long served as a key transit hub for rice imports, supplying much of Nigeria’s consumption as rice sourced from India and Thailand typically enters Nigeria through Cotonou before being re-exported informally into Nigeria.
However, it added that the licensed traders were increasingly bypassing Benin, buying rice directly from Thailand. It added: “The vessels from BUA, Olam and TGI carry 40,000 metric tonnes each of regular parboiled milled rice. Nigeria, the region’s largest rice consumer, has entered its paddy harvest season, adding more downward pressure on retail prices.
“At the start of 2025, a 50 kg bag of rice cost N85,000, but it has now dropped to N55,000. As Nigeria continues its harvest season, prices may decrease further. This trend has been mirrored in Benin, where the cost of a 50 kg bag of rice fell to 14,500 CFA francs ($23) in October, down from 17,000 CFA francs ($27) in July.
