Rice price to surge by 32% in 2024 – Report

Bisola David
Bisola David
Rice price to surge by 32% in 2024 – Report

The AFEX Wet Season Crop Production Report for 2023 projects that the price of paddy rice will rise by 32% in the 2023–2024 crop production year, while the production output is expected to grow by 3.6%.

According to The Times, the report clarified in its outlook for rice production that, in contrast to 2022, when farmers lost about 100,000 hectares of rice farms, rice production in 2023 was stable due to the absence of flooding.

Nevertheless, it also noted that the absence of floods in 2023 contributed to stable production as farmers gave in to lower fertilizer prices.

According to the report, “In 2022, flooding negatively impacted over 100,000 hectares of paddy rice, resulting in a decline of over 300,000mt.

“However, there was minimal to no flooding throughout the 2023 crop season, which contributed to its stabilization. The area of land used for rice production significantly increased as farmers looked to take advantage of the favourable market conditions.

“Our estimates show a 3.6% rise in paddy rice production volume in light of these positive changes, translating into an expected 8.3 million metric tonnes of total output in 2023.”

According to the research, a 32% increase in rice prices is anticipated as a result of a drop in production brought on by the flooding in 2022 and India’s restriction on exporting paddy rice.

The statement read, “We anticipate a potential surge in the price of paddy rice by up to around 32%, while there is an expected increase in production of approximately 4%.”

Apart from rice, the research provided forecasts for the production and price trends of significant agricultural commodities like soybean, sorghum, maize, and cocoa.

According to the survey, there will be a 5% increase in the average price of maize going forward, as high demand is expected to drive up production by 6.9% in the upcoming year.

According to the survey, cocoa prices would rise by almost 70% annually, while sorghum prices would rise by 20% in the upcoming planting season.

In Nigeria, the cost of food, particularly rice, has been rising quickly in recent years. In the latest inflation report by the NBS, food inflation reached 31.5%.

On the other hand, rice is a commodity that has appreciated significantly. The average increase in rice prices during the most recent NBS food price watch for September was 60.59%.

Even though Nigeria is now the continent’s top producer of rice thanks to CBN efforts in recent years to boost output, Nigerians have not seen a decrease in the price of their staple grain.

In order to guarantee irrigation for all year-round agricultural, the federal government announced a state of emergency in July, stating that the ministries of agriculture and water resources needed to work together.

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