The global rice glut has crashed the price of Thailand parboiled rice from $502 to $390 per tonne or N12.480 per 50kg bag, leading to a drastic drop.

However, Nigerian consumers reportedly pay about 79% or N58,000 per 50kg on smuggled parboiled rice from neighbouring countries such as the Benin Republic due to a N1.4 trillion shortage in local production.

India floods the market with rice

According to reports, export restrictions by India, the world’s largest producer, have been removed, leading to a glut in the global market.

Findings show that India’s rice stockpile totalled about 63.09 million in April, almost five times its government-approved target.

According to data from the Food and Agriculture Organisation (FAO), global rice production would reach 543.6 million metric tons between 2024 and 2025, with a total supply hitting 743 million tonnes, above the projected demand of 539.4 million tonnes.

Rice price crash, but Nigerians pay more

Reports say that rice prices began to crash in April 2025 due to India’s decision to lift the 2022 export embargo.

The move reportedly drove Indian grain prices to a 22-month low, with prices in Thailand and Vietnam declining to their lowest in three years.

The New Telegraph reports that Nigeria has continued to depend on the global market to meet its rice needs, despite the longstanding import ban.

Nigeria’s fastest-growing import routes included India, with a $2.87 million yearly increase.

Thailand and Vietnam ramp up exports

Thailand and Vietnam have reportedly scaled down exports due to a global glut, leading to Thailand’s exports falling by 30% in the first quarter of 2025, and are projected to fall by 24% in 2025.

Legit.ng earlier reported that in January, Nigeria received a 32,000-tonne cargo of brown rice from Thailand under the 150-day duty-free import window announced by the government to ease food inflation.

In March this year, Thailand’s rice export to the Benin Republic crashed by 14% from $502 to $432 per tonne, at an estimated landing cost of N21,600 per 50kg bag in the country.

Rice: Pakistan and Vietnam cut prices in West Africa

Additionally, Pakistan and Vietnam have cut prices to allow them to compete with Thailand in the West African market.

An investigation shows that dealers sell a 50kg bag of rice in Nigerian markets at N56,000 and N58,000 to consumers.

In April, the Nigeria Customs Service (NCS) in Lagos intercepted 3,832 bags of 50kg of foreign rice heading to the southeast.

Experts have said that rice production in Nigeria will decline from 5.60 million tonnes to 5.22 in the 2024/25 season, while paddy rice is also projected to decline to 8.30 million tonnes.