A new report has found that the price of locally grown paddy rice is predicted to increase by almost 55% in the 2024β2025 season, further driving up the already high cost of living.
Β Rice prices have been steadily rising, according to the Afex Wet Season Crop Production 2024 report that THE NEWS CHRONICLES viewed.
According to the research, the average price of rice increased by 78% during the 2023β2024 season, reaching N630,000 per metric tonne.
The market’s limited supply and rising demand for rice, which outstripped supply, were blamed for this dramatic increase.
Additionally, a further seasonal price increase of about 55% is predicted by the report.
The high beginning price for the 2024β2025 season, which is anticipated to be around N750,000 per metric tonne and reflects ongoing supply difficulties, is the main cause of the anticipated increase.
Prices for paddy rice are expected to rise even further by the third quarter of 2025, hitting N1,100,000 to N1,300,000 per metric tonne.
Factors Contributing To The Price Increase
The paper states that the following significant factors affected the price of paddy rice in 2024:
- Low Access to Financing (38%): Farmers’ capacity to invest in productivity was constrained by their inability to obtain reasonably priced loans.
- Low Access to Inputs (31%): Overall yields were lowered when vital supplies like seeds and fertiliser were unavailable.
- Slow, Inadequate Rainfall (10%): Crop growth was adversely affected by late rains, which also interfered with planting schedules.
- Overwhelming Rainfall (6%): In certain regions, flooding ruined crops and decreased yields.
- Insecurity (3%): Due to safety concerns, farmers in areas prone to violence were unable to fully utilise their holdings.
- Low Access to Farmland (2%): The growth of rice agriculture was constrained by the scarcity of reasonably priced farmland.
The price of rice increased in 2024 as a result of these issues.
What To Note
Some Nigerians think that the federal government’s restrictions on rice imports could contribute to a decrease in food costs.
According to data from Nigeria’s National Bureau of Statistics (NBS), food inflation has increased to 39.16% annually.
To combat rising food prices, the government responded by waiving import charges on a number of foods, including beans, brown rice, wheat, and maize.
As of 2023, Nigeria produced approximately five million metric tonnes of rice, which is just about 60% of what the nation needs for consumption.
Due to the shortage, rice has been illegally imported, which has caused a sharp rise in market prices.
Despite significant government investments in rice production, including the N1.1 trillion Anchor Borrowers’ Programme, rice prices have skyrocketed between 2016 and 2023.
