Prices in parts of Nigeria, especially border communities, have fallen by 58,000 times in part of Nigeria due to increased imports from the Republic of Benin, a new report by S&P Global shows.
The report said the wandering rice market in West Africa fell to its nearly two-year low as India revoked export taxes on rice.
According to Platts, part of S&P Global Commodity Insights, Benin’s warehouses are filled with low-priced rice from India.
It is reported that between September 2024 and December 2024, India exported about 2.11 million tons of millet to West Africa, while in the same period of 2023, India exported 720,000 metric tons.
Overall, India’s rice exports to West Africa increased to 5.35 million tons in 2024, up from 3.9 million tons in 2023, according to data from the Agriculture and Processed Food Export Development Bureau.
Nigeria’s market suffers from price collapse
The influx has had a significant impact on Nigeria, the largest rice consumer in West Africa.
The price of a bag of 50kg of local rice dropped from 80,000 –₦90,000 to about 60,000, while imported Indian rice is now sold for about 80,000 per bag.
In border communities, especially in Ogun State, Rice is reportedly selling for under 50,000 bags due to the flow of smuggled goods in Benin.
Despite falling prices, demand remains weak
Despite the sharp drop in prices, demand remains slow.
“Despite the price drop, demand has not risen accordingly. As prices continue to decline every day, buyers are taking a cautious approach, waiting for stability, and then making a purchase before,” said the Standard & Poor’s Global Report.
Rice traders based in Togo also pointed out that the market in West Africa is usually quiet and bearish at present.
Market observers predict that demand may be near the Christmas season around September, when household consumption traditionally increases.
Despite the ban, smuggling continues
Despite Nigeria’s ban on rice imports, the commodity remains the most entry into the country, and the Nigerian Customs Services Department is continuing to fight rice smugglers in the border areas.
