Nigeria Rice Production to Contract by 7%, Price Spikes

Nigeria Rice Production to Contract by 7%, Price Spikes

Nigeria’s rice production is estimated to fall by 7% in the marketing year beginning October through September 2023 mainly due to insecurity and floods in rice-growing regions, the United States Agriculture Department said.

Households have started to see a substantial increase in the average price of bags of rice, up by about 50% in some cases to N45,000 from N31,000, according to channel checks.

USDA reported that production is expected to decline to 7.8 million metric tons from 8.4 million tons in 2021-22, the USDA said in its Nigeria grain and feed update.

Area harvested is expected to shrink by 7% to 3.4 million hectares (a hectare equals 2.47 acres) in the current marketing year, it said.

Floods in September washed away thousands of hectares of rice farms at the maturing stage, the USDA said, citing extension officers and farmers.

In 2021-2022, yield increased marginally due to good weather, improved management practices, and improved varieties, it said. Rice imports are estimated to fall to 1.5 million tons, down from 2.2 million tons the prior marketing year due to a partial ban.

In 2022-23, rice consumption is estimated at 6.9 million tons, a decline of 5% due to higher prices amid dwindling consumer purchasing power, it said. READ: Perspective: Is there Food Crisis in Nigeria?

The USDA said that the price of 50-kilogram of rice has increased more than 50% over the last 12 months amid the devaluation of the Nigerian currency and rising inflation. Across the market, the average price of bags of rice increased by about 20% amidst heavy flood records in the country.

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