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The main reason pointed out in the report for the gnawing gap is the increasing rice consumption in the country. The fluctuations in prices, dealers say, are daily
Nigeria is facing at least a supply gap of 2 million tons of rice annually, according to a report released by APEX West Season Crop Production Report of 2023. The main reason pointed out in the report for the gnawing gap is the increasing rice consumption in the country. The fluctuations in prices, dealers say, are daily.
Between last year and this year, the price increase was appreciable. A bag of rice, which cost only N28,000 last year, retailers say, is going at N42,000. The increased prices have kept the buyers’ number low, complaints dealers and those who have been buying in bulk have considerably cut down their purchases. Added to this, there are supply constraints. Nigeria is currently not self-sufficient in rice production compared to what it was in 2015. In 2016, Nigeria was meeting 84% of its local demand. The production was about 5.4M metric tonnes. A part of the rice deficit is due to the higher growth of the population.
Farmers are not cultivating rice because of the higher input cost. The input price has increased by about 30-40% due to inflation. This has considerably affected the ability of smallholder farmers to produce, unlike in countries like China and Vietnam, two rice-producing hubs. Nigeria is the largest producer of rice in West Africa. Yet, it is an irony that the West African country has to import rice.
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Globally, rice prices reached their highest point in nearly twelve years in 2023. The main reason pointed out is India’s ban on rice exports and the potential impact of El Nino on production in key regions. Rain-induced disruptions are another reason for the fall in global production. Rice production in Vietnam was considerably affected due to excessive rains. The report points out that Nigeria has spent over US$15 billion in the past decade to meet its expanding rice consumption, despite its potential to be a net rice exporter.
