West Africa rice importers decrease purchases amid oversupply, low demand

Rice importers in West Africa have reduced purchases because of low demand and price volatility, worsened by an oversupply in the market at the start of 2025.

Platts, part of S&P Global Commodity Insights, assessed the price of parboiled 5% STX CFR Cotonou rice at $509/mt on Jan. 22

A Cotonou-based importer said the market is oversupplied, causing considerable congestion at the port with many ships. The depreciation of the West African CFA franc against the dollar, along with market instability, led to a significant downturn, particularly impacting local prices. While the price for a 50 kg bag was CFA 21,000 in December, it has not changed, but its purchasing power has diminished considerably, he added.

Importers from Ivory Coast and Togo expressed similar concerns, anticipating an increase in demand by March due to the Easter and Ramadan seasons.

Market participants largely attributed the oversupply to significant exports from India, with many cargoes ordered when Indian rice prices were low.

According to the Agricultural and Processed Food Products Export Development Authority, India's rice exports were 2.08 million mt in 2018-19, increasing to 3.25 million mt in 2020-21 and reaching 4.10 million mt in 2023-24, marking a 36% postpandemic rise.

"This growth aligns closely with population growth, as the consumption of food staples typically does not increase significantly beyond population growth in the long term," an importer said.