Nigerian local rice prices rise due to lower supply of local paddy

Nigerian local rice prices increased amid rising local paddy prices, which were affected by a lower supply of local paddy, sources said. The availability was short since the paddy from the last season depleted and consumers await the next season, which is in June-July.

"In a year, the production is at 2.7 million mt head rice but the consumption is 6 million mt. Usually, it used to sell off within three to four months," a miller said.

The West African rice market has been weak since January due to surplus stocks and low demand. Platts, part of S&P Global Commodity Insights, assessed the price for parboiled 5% STX CFR Cotonou rice at $447/mt on March 10, $71/mt lower from January and down by $32/mt month over month.

"In 2015, when the Nigerian government banned rice importing, Benin has been acting as the transit market, for almost 10 years now," a Benin-based importer mentioned.

"The Indian imported rice will not reach the north and southeast regions of Nigeria because it is far from the Cotonou-Nigeria border. The lengths of Indian imported rice and Nigerian rice are comparatively the same, millers rebag it in the name of Nigerian rice and sell it under the Nigerian rice price" a Nigerian miller said.

"The local Nigerian rice price is at Naira 85,000 for a 50 kg bag, whereas the foreign rice is at Naira 65,000 per 50 kg bag," another miller noted, adding, "but nobody is willing to buy local rice at a higher price since there is an availability of imported rice in the market".

According to reports, the naira has depreciated by 2.20% against the dollar over the last month and 2.15% over the past week.