Rising rice consumption in Nigeria has outpaced local production, leading to a significant annual supply gap of approximately 2 million metric tonnes, according to the latest AFEX Wet Season Crop Production Report for 2023. As a consequence, there has been a staggering 37% surge in the price of rice since the beginning of the year.
The increased prices have deeply impacted rice dealers, with fluctuations on a daily basis affecting their business prospects. Many dealers have experienced a decline in customers, attributing it to the substantial rise in prices.
犀利士 – /wp:paragraph –>One dealer expressed concern about losing customers due to the steep increase in prices. “Sometimes I do get customers from various hotels, but now I have lost most of my customers because of the increase,” shared the dealer.
Another dealer highlighted the noticeable difference in customer demand compared to the previous year, emphasizing the challenge in attracting buyers amid the significant price hike.
Customers, too, are feeling the strain of increased prices, resulting in altered buying patterns. Some individuals mentioned buying smaller quantities of rice due to the escalation in prices, leading to widespread complaints among Nigerians about the soaring cost of this staple.
The AFEX report indicated a steady rise in rice consumption in Nigeria, nearly aligning with the annual population growth projection. The 37% year-to-date price increase has been attributed to reduced production in 2022, mainly due to the adverse effects of flooding during that year’s wet season.
Agricultural business expert Richard Ogundele highlighted Nigeria’s struggle to achieve self-sufficiency in rice production, citing challenges such as population growth, security issues, increased input prices due to inflation, low yields, and limited mechanization compared to countries like Vietnam and China.
Despite Nigeria being the largest rice producer in West Africa, it still relies on imports to meet its domestic consumption needs, spending over $15 billion in the past decade to fulfill the rising demand for rice.
Globally, rice prices have surged significantly, reaching a twelve-year peak in 2023. Factors such as India’s ban on rice exports, potential weather-related impacts from El Nino in key production regions, disruptions caused by rainfall, and quality variations during Vietnam’s harvest have contributed to this price hike.