Traders, consumers groan over soaring price of rice

Vendors and consumers have questioned the rationale behind the soaring price of domestic rice in comparison to foreign brands. While calling for immediate intervention from the government and stakeholders, many demand the importation of foreign brands. They point out that this would neutralise the price hike of local rice.

In September, experts projected fresh indications on the imminent hike in the price of rice in the weeks following, going by the closure of mills in major rice-producing states in the country due to several factors including; a shortage of paddy supplies majorly caused by the closure of the Niger Republic border, where a large chunk of the cereal is procured to service the mills, insecurity, cost of inputs, electricity, flooding, payment of workers among others.

However, the closure of borders by the previous government in a view to tackling the high rate of smuggling, as well as the apex bank’s decision in 2015 to list rice among the 42 items classified as “not valid for foreign exchange in the Nigerian forex market”, to support local rice millers, led to a spike in the prices of local parboiled rice owing to production shortfall seeing its demand is growing faster because of population growth, urbanization and changes in consumer preferences.

Between June and September 2023, the price of paddy increased from N330,000 per tonne to N400,000 per tonne according to the Chairman, Northern Chamber of Commerce, Industry, Mines and Agriculture, Dalhatu Abubakar.

With the development, the price of rice was projected to increase to N50,000 or more in the weeks to come as more mills got shut down.

A market survey carried out in major markets in Lagos State, showed that a 50kg bag of rice, which sold for between N30,000 and N35,000 December 2022 and February 2023, has spiraled to over N60,000, depending on the brand across markets in the metropolitan city.

Vendors, consumers groan:

A supervisor of a popular supermarket along Ire Akari, Isolo area of Lagos State, called for immediate intervention in not just reducing the cost of rice, but for other food items in general. The sales outlet overseer who craved anonymity, revealed their store sold strictly locally produced rice since foreign rice was considered “contraband” in the country.

Revealing the selling price of Nigerian rice at the store, she argued it was expensive conpared to the locally produced one.

She insisted that low-income earners couldn’t even afford it, as a bag sold for N55,000 at their store, calling on the government to allow the importation of rice, maintaining that would checkmate the high rate of homegrown rice.

“A month ago Nigerian rice was 48,000 but as of now, it is over N60,000. The rate at which things are increasing is so heartbreaking. Since it’s our homemade rice, the price shouldn’t be this much.

“Generally, the prices of food items and others are high. The government and stakeholders should look into it because people are crying. Prices of foodstuffs change daily. Today you might buy something for N50 and when you come tomorrow, it’s gone up to N200.

“Assuming importation of rice was allowed, the price of the local rice will not be this high so they should just open the border to make life easier for the Nigerians because the people are suffering”, she stated.

Another vendor, Monny’s Store in the Daleko area of Mushin noted said: We have Mama Gold, Family, Eko, Big Bull, Umza, Amarava, Pretty Lady, and others. And these names I mentioned, they do not have stones and they are clean. The difference between these and foreign brands of rice isn’t that much.”

“Nigerian rice is more expensive than foreign sometimes. They give different reasons for the high price. This foreign now, we sell it at the rate of N47,000 per 50kg bag. We have Nigerian rice that is N49,500, that is the Big Bull; why is it like that? We have Mama Gold which is N48,500, why is it like that? And these brands I mentioned are the same short grains as the foreign ones. So, why are they more expensive?”

A food vendor emphasised that there was variation in the quality and neatness of the locally grown rice compared to foreign ones which she noted was generally clean, stone-free, and often less expensive.

She said: “While some local rice is stone-free and requires less time to prepare, others require time-for the removal and sorting from the rice before cooking. Since there would be commotion when customers eat rice with stones, I just settle for foreign rice because I want the satisfaction of my customers and also because it’s the same amount and sometimes it is cheaper than the local ones, according to Madam Grace in the Olodi Apapa neighborhood of Lagos.

A resident of the Apapa/Wharf area of Lagos, lamented the ‘outrageous’ price of local rice, claiming a recent visit to a popular supermarket within the vicinity, showed that a 50kg bag of “Big Bull”, Nigerian rice, sold for N68,400.

The Nation also observed the staggering amount of domestic rice sold at online sales outlets. On Jumai for example, the price of a 50kg bag of Big Bull rice was pegged between N74,490 and N84,490, while at the official store, it sold for N56,756.

On Konga, the same domestic rice sold for N63,900, while its foreign counterpart, Royal Stallion sold for between N62,500 and N69,900.

On Jiji, the same domestic rice brand sold for N62,000 in Lagos, while Royal Stallion went for N67,000.

Government Intervention:

Meanwhile, in January 2022, the former President, Muhammadu Buhari assured Nigerians that prices of food items, especially rice would soon come down.

He gave the assurance during the official unveiling of the Central Bank of Nigeria (CBN)/Rice Farmers Association of Nigeria (RIFAN) Rice Paddy Pyramids in Abuja, where he urged Nigerians to exercise some patience, saying the growing food production in the country, especially the expansion in rice farming would eventually bring down prices of food, making it more affordable for all.

Similarly, in March 2023, the Central Bank of Nigeria (CBN) said it disbursed N12. 65 billion to farmers under its Anchor Borrowers’ Programme (ABP) in the first two months of the year.

This was made known by the former apex bank governor, Godwin Emefiele while reading the communiqué issued at the end of the 290th meeting financial institution’s monetary policy committee (MPC) in Abuja on Tuesday, March 21, 2023.

Emefiele mentioned that since the ABP’s establishment in 2015, a total of N1.09 trillion had been disbursed.

Former president Muhammadu Buhari introduced the ABP on November 17, 2015, with the goal of establishing a connection between smallholder farmers (SHFS) and anchor companies that process the necessary major agricultural commodities.

He claimed that the programme had benefited 4.6 million smallholder farmers cultivating, or rearing 21 different agricultural commodities.

“Between January and February 2023, the bank disbursed N12.65 billion to three agricultural projects under the ABP.”

“It brings the cumulative disbursement under the programme to N1.09 trillion to more than 4.6 million smallholder farmers cultivating or rearing 21 agricultural commodities on an approved 6.02 million hectares of farmland”, Emefiele stated.

Despite the previous administration’s efforts to bring down the price of rice, it has continued on the rise.

All efforts to speak with the president of the Rice Farmers Association of Nigeria (RIFAN), Aminu Goronyo, proved abortive.

Opening of borders, rice importation imminent:

With the increasing difficulty in meeting the expanding demand for rice in Africa’s most populous nation, the government may need to heed the calls of the citizenry to open up its borders as well as embrace the importation of rice.

This may just be underway as the Central Bank of Nigeria (CBN) governor, Dr. Olayemi Cardoso, on October 12, 2023, disclosed the forex ban on 43 items, including rice has been lifted and also promised to intervene in the FX market from “time to time”.

A report by the United States Department of Agriculture (USDA) projects Nigeria to become the top rice buyer globally in 2024 with an import of 2.1 million metric tons of rice.

According to the latest Rice Outlook report by the Economic Research Service of the (USDA), global rice trade is expected to hit about 52.85 million tons (milled basis) by 2024, with more exports expected from Brazil and South Korea, and more imports from Burkina Faso, Indonesia, and Nigeria.

It indicated that a record 517.8 million tonnes of rice will be produced worldwide in 2023-2024, down 340,000 tonnes from the previous month’s estimate, that is but 4.4 million tonnes more than the previous year.

Nigeria is expected to produce roughly 5.23 million tonnes of rice, out of the total projected production figure.

It further highlighted both “high prices for domestic rice and quality concerns” for “stronger-than-expected demand for imported rice”.

Given the data presented in the report, Nigeria is anticipated to emerge as the primary importer of rice in 2024.

With a projected import of two million and 900,000 metric tonnes respectively, Indonesia and Brazil are expected to trail Nigeria respectively.