West African rice growers struggle as import flood undercuts prices

Local rice farmers across West Africa are facing mounting challenges in selling their harvests as cheaper imports from abroad undercut prices. In some countries, the government has intervened to ease pressure on local rice farmers through subsidies. Some market participants said there are deeper structural problems that have made local rice less competitive.

The Malian government announced on April 23 that it will buy 26,030 metric tons of unsold locally produced rice to stabilize the market and support farmers. Managed by the Agricultural Products Office, the operation will use public subsidies to cover logistics and distribution, helping clear excess stock that had previously had difficulty finding buyers. The government said it will buy the surplus rice stocks and resell them to consumers at affordable prices.

"This measure addresses the excess inventory caused by the limited competitiveness of local rice, which is less attractive to buyers due to high production costs compared to imported rice," a West African-based rice trader said.

The challenges facing Mali mirror a broader regional pattern across West Africa, notably in Nigeria, Senegal and Ghana.

In Senegal, authorities have recently introduced a series of measures to promote domestic rice consumption. These include a 50 CFA subsidy per kilogram, temporary import restrictions, and incentives for public institutions to prioritize the purchase of local rice.

Despite these efforts, market dynamics remain unfavorable for local producers, as imported rice—often cheaper and more price-competitive—continues to dominate. Local media reported that by late March 2026, rice millers and agro-industrial operators in the Saint-Louis region of the Senegal River valley held combined stocks of paddy and milled rice exceeding 50,000 mt.

Ghana faces an even more difficult situation. By November 2025, about one million metric tons of paddy rice remained unsold amid a market flooded with low-cost imports, some of which were smuggled. This surplus has led to the shutdown of several processing facilities and has significantly impacted farmers' incomes.

In response, President John Dramani Mahama announced in April 2026 that Cedis 200 million ($18 million) would be allocated to the National Food Buffer Stock Company (NAFCO). The funds are intended to purchase excess maize and rice from farmers and distribute them to public institutions such as secondary schools, hospitals, and prisons to stabilize the market.

A Nigerian-based miller said these measures provide temporary relief, but they also underscore the deeper structural challenges confronting West Africa's grains sector.

"High production costs, perceived quality gaps, and inefficient distribution networks continue to hinder the competitiveness of domestic rice, undermining the region's ambitions for food self-sufficiency," he said.

Platts assessed West African parboiled rice CFR Cotonou at $417/mt April 24. India Parboiled 5% was assessed at $333/mt April 27.