A 50kg bag of locally parboiled rice now costs, on average, N105,000. According to THE NEWS CHRONICLES market survey, this is more than Nigeria’s new N70,000 minimum wage.
A 50 kg bag of imported parboiled rice currently costs N130,000. In contrast, the price of local parboiled rice, a mainstay in Nigerian cuisine, has increased by 123% annually since the petrol subsidy’s elimination and the naira’s depreciation.
Due to instability, high input costs, and logistical challenges, smallholder farmers cannot supply the local demand for parboiled rice, as seen by the ongoing price increase.
In Lagos, the nation’s commercial hub, rice dealers are already stockpiling the item in hopes of a price increase during the holiday season, when demand for it is typically stronger.
“The price of local parboiled rice is rising because millers are struggling with high production costs,” explained Chioma Precious, a trader at Wuse Market in Wuse, Lagos.
Bose urged the government to help the impoverished Nigerians, attributing the spike in foreign parboiled rice to fluctuations in foreign currencies.
In July, the federal government announced that import taxes on rice and a few other staple foods would be suspended to address the nation’s growing food insecurity.
However, while food item announcements and prices have been steadily rising, the strategy has not yet been implemented.
“The government has not yet addressed the problems of insecurity, and we still do not grow enough rice to feed our population.” African Farmer Mogaji, CEO of X-Ray Consulting, responded to inquiries by saying, “Kidnapping has also been a major threat to food security in the country.”
He added that this year’s flooding problems nationwide also had an impact on the nation’s rice output, pointing to the Niger government’s recent ban on grain exports to Nigeria as an additional danger to millers.
“The Niger government has banned grain exports to Nigeria. This means millers would not have enough paddy for their mills because the majority of it originates from neighbouring nations,” Mogaji explained.
He emphasized that a lot of farmland was abandoned because of insecurity and said that millers cannot raise production if farmers do not improve their produce.
The 2024 second-quarter GDP data showed that sector growth fell to 1.4 percent from 1.5 percent in the same quarter of 2023, demonstrating Mogaji’s claim.
“How can I afford to buy a bag of rice for N105,000 when I only make N100,000? What will I have left to feed my children and provide for our needs?” Peter, a Customer Experience Manager shopping at Suleja Market, remarked.
Peter stated, “We have been managing, but how far can we go with the way prices are surging and the recent removal of subsidies means the prices will rise further.”
