Rice Prices in Nigeria Fall to N58,000 as Indian Imports Flood Benin Republic, Fueling Smuggling Despite Border Ban
The price of a 50kg bag of rice has dropped to N58,000 in parts of Nigeria, especially in remote areas, following a surge in rice imports from the Republic of Benin, according to a report by S&P Global.
The report stated that the West African parboiled rice market has slumped to near a two-year low as regional markets are flooded with supplies after India removed export duties on parboiled rice.
As a result of the influx into neighbouring Benin, from where rice finds its way into Nigeria, the price of a 50kg bag of rice has fallen sharply from N80,000 to N58,000.
Platts, a division of S&P Global Commodity, reported that warehouses in Benin are filled to capacity with cheaper rice from India. Between September and December, India reportedly exported about 2.11 million metric tonnes of parboiled rice to West Africa, a sharp increase from 720,000 metric tonnes in the same period in 2023.
Overall, in 2024, India exported 5.35 million metric tonnes of parboiled rice to West Africa, compared to 3.9 million metric tonnes in 2023, according to the Agricultural and Processed Food Products Export Development Authority.
A trader based in Togo described the regional market as “quiet and bearish,” noting that Nigeria’s continued illegal imports of rice from Benin have forced both local and imported rice prices downward in recent weeks.
The price of a 50kg bag of local rice has fallen from between N80,000 and N90,000 to about N60,000, while imported Indian rice now sells for around N80,000.
“Despite the drop in prices, demand has not picked up. Buyers are waiting for prices to stabilise before making purchases,” the report added.
A trader in Benin predicted that demand would likely rise as the Christmas season approaches in September.
Our correspondent reports that Nigeria remains the major consumer of rice imported into the Benin Republic. In border communities across Ogun State, the staple food is selling for less than N50,000 due to proximity to Benin.
Despite a ban on rice importation, rice remains the most smuggled commodity into Nigeria, keeping customs officials on high alert.
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