The price of rice has fallen by 20-30% within two months on major markets, amid rising food price inflation in Nigeria.
This will be a relief to Nigerian households that spent N88,000 on a 50 kg bag of rice as recently as February.
The report noted that analysts surveyed some markets in Lagos and found that a 50kg bag of rice now costs between 50,000 and 65,000 in Oshodi, Ikotun, Ikorodu, and other parts of the states, according to nairametrics.
Similarly, the market survey showed that a 25 kg bag of rice sells at between N25 000 and N32,500 depending on its brand.
A trader who sells various food items on the outskirts of Oshodi, Mrs. Bosun Adeyeye, said she reduced the price of her “long rice” to less than N70,000 last Wednesday, as a result of a reduction in price from her her distributor to N60,000.
In addition, She noted that “short rice,” with different varieties, is priced between N55,000 and N65,000, depending on the customer’s preference.
Adeyeye said “Since Wednesday, we have been selling between N55,000 to N65,000 depending on the type of rice you want to buy. The bags are different, and some are more expensive than others.”
Another trader, who sells various food items at Abule Egba in Lagos Mainland, Chima Emeka, stressed that the market price for foreign rice has dropped to N65,000, attributing it to the appreciation of the naira.
“I think importation is cheaper now unlike before when the dollar was around N1,600 to N1,800. Then, we couldn’t get foreign rice for less than N80,000, but as of today that dollar is N1,100, and traders are bringing down their prices. You know, foreign rice is first priced in dollars,” Emeka said
Analysts reported a similar pattern in Abuja, with traders in various markets selling below N70,000 for a 50kg bag of rice.
This shows a significant reduction of about 26.14% in price compared to the last market survey price in February.
In his remark, the President of All Farmers Association, Kabir Ibrahim said that rice is far cheaper in places like Kano, Kebbi, and Sokoto.
“These rural areas are the places the rice is being produced, like most places in the world.
“All these urban states employ middlemen to transport the rice to their places for trade. They are traders, not farmers,” Ibrahim noted.
Meanwhile, the President of the Allied Farmers Association of Nigeria, Dr Austin Maduka, explained that the price decrease can also be ascribed to to entry of players into the sector, rice processors in particular.
“Many people are going into the business of rice processing now than ever before. I think if the government can continue to do more to support local farmers, especially in the production of food items, the prices will go down even further,” Maduka noted.
He continued “The price of rice may rise in the future if the dollar rate is not stable. For example, if you look at the purchase of equipment used in processing factories, you’ll realize that those machines are not assembled in Nigeria.
“Power is also a huge factor. When you don’t have light, you need to use generators, and that costs more because these are heavy machinery.
“The Federal Government needs to do everything it can to mitigate against a possible boost and bust. I will say with constant supply of electricity, the prices will crash even more in the coming months,” Maduka added.
