Nigerians now buy a 50kg bag of local parboiled rice for an average of N105,000, higher than the country’s new minimum wage of N70,000, according to BusinessDay market survey.
Since the removal of petrol subsidy and devaluation of the naira, the price of local parboiled rice, a key staple in the Nigerian diet, has surged by 123 percent year-on-year, while a 50 kg bag of foreign parboiled rice now sells for N130, 000.
The continuous surge in the price of local parboiled rice is an indication that smallholder farmers currently do not have the capacity to meet local demand for the grain due to insecurity, high cost of inputs and logistics issues.
Currently, rice traders in Lagos – the country’s commercial center – are hoarding the commodity in anticipation of a higher price during the festive period when demand for the product is usually higher.
“The price of local parboiled rice is surging because millers are struggling with high production costs,” said a trader at Daleko Market in Mushin, Lagos, who gave her name as Bose.
Bose attributed the surge in foreign parboiled rice to foreign exchange volatility, while urging the government to come to the rescue of poor Nigerians.
In July, the federal government announced the suspension of import duties on rice and some other essential food items to tackle the country’s rising food insecurity.
However, the policy is yet to be implemented since the announcement and prices of food items have continued on an upward trajectory.
“We still do not grow enough rice to feed our population and the government is yet to fix issues of insecurity. Also, kidnapping has been a major threat to food security in the country,” AfricanFarmer Mogaji, chief executive officer of X-Ray Consulting, said in a response to questions.
Read also: FG withdraws plan to sell 50kg bag of rice at N40,000 to civil servants
He further said that the flooding issues across the country also affected the country’s rice production this year, citing the recent ban on grain exports into Nigeria by the Niger government as another threat to millers.
“The Niger government has placed a ban on grain exports to Nigeria. This means millers will not have enough paddy for their mills as bulk of it comes from neighboring countries,” Mogaji said.
He stated that millers cannot ramp up production if farmers fail to increase their production, stressing that lots of farmland was abandoned owing to issues of insecurity.
Mogaji’s assertion is evident in the 2024 second-quarter Gross Domestic Product report where growth in the sector slowed to 1.4 percent, compared to 1.5 percent in the corresponding quarter of 2023.
“How do I afford to buy a bag of rice for N105,000 when I earn only N100,000? What will I have left to feed my children and for our upkeep,” Chioma Okeke, a teacher who was at Ketu Market to make purchases, said.
“We have been managing, but how far can we go with the way prices are surging and the recent subsidy removal means the prices will surge again further,” Okeke said.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
