Rice prices dropped as imports from Benin flood Nigerian markets, see new price

The price of a 50kg bag of rice has dropped significantly to around N58,000 in parts of Nigeria, particularly in remote areas, according to a new report by S&P Global.

The drop follows a surge of rice imports from the Republic of Benin, fueled by India’s recent removal of export duties on parboiled rice, which has flooded regional markets and sent prices plummeting to near two-year lows.

According to the report, the influx of lower-priced rice from India has overwhelmed warehouses in Benin Republic. Between September and December 2024 alone, India exported approximately 2.11 million metric tonnes of parboiled rice to West Africa — a massive jump compared to 720,000 metric tonnes recorded during the same period in 2023. For the full year, India’s parboiled rice exports to the region hit 5.35 million metric tonnes, up from 3.9 million metric tonnes the previous year.

In Nigeria — Benin’s largest rice consumer — both local and imported rice prices have sharply fallen over the past two weeks. Reports indicate that local rice prices dropped from between N80,000 and N90,000 to around N60,000, while Indian-imported rice now sells for as low as N58,000. In some border communities in Ogun State, where access to smuggled rice is easier, prices have even dipped below N50,000.

Despite the decline, traders report that demand has not risen significantly. “With prices continuing to slide daily, buyers are cautious, waiting for the market to stabilise before making large purchases,” the report stated.

Meanwhile, despite the official ban on rice importation into Nigeria, rice remains the most smuggled commodity into the country. The Nigerian Customs Service continues to battle smugglers, often at great effort, especially along border communities.

Nigeria, Africa’s largest rice market, continues to rely heavily on smuggled rice, complicating efforts to boost local production.