Local rice price rise 73% in 12 months

The significant increase in the price of local rice in Nigeria, despite substantial financial support from the Central Bank of Nigeria for the rice value chain, is a notable economic development reported by The PUNCH. This increase is attributed to the rising costs of production, transportation, and other factors.InformationGuideNigeria

According to data analyzed by The PUNCH from the National Bureau of Statistics (NBS), the price of one kilogram of local rice escalated by 73.2% from N500.80 to N867.20 between November 2022 and November 2023.

The price hike is noteworthy even when compared to foreign imported rice, which also saw a substantial increase of 61.53% in the same period. Despite these trends, local rice remains more affordable than imported rice, though the gap is narrowing.

In Lagos State, local rice reached its highest price at N1,122.42 per kilogram, despite the presence of the 32-tonne per hour Lagos Rice Mill producing the Eko Rice brand. Conversely, the lowest price was recorded in Kebbi State at N688 per kilogram.

Governor Babajide Sanwo-Olu of Lagos State had previously expressed confidence that the Lagos Rice Mill would significantly contribute to addressing rice importation challenges, with its annual production capacity expected to meet a substantial part of the local demand.

Kabir Ibrahim, the National President of the All Farmers Association of Nigeria, commented on this issue in an interview, attributing the high price of local rice to inflation and the consequent increased costs of production. He noted that logistics, packaging, and labor costs are also significant factors. However, Kabir contested the NBS figures, suggesting they might not accurately reflect the market situation.JAMB Result

He said, “The cost of production has always been very high due to various factors. Transportation is a factor and it became a very serious threat to pricing after the removal of the fuel subsidy. If you are buying a bowl of milled rice, the miller has to provide its own power, pay workers’ salaries and discount the cost of his machinery. He has to do packaging alongside transportation costs. so it’s definitely going to be costlier than imported rice that’s not edible in Thailand.

“Two, the farm gauge price is far different from the prices in the market and three markets stand out and should not be used as parameter for pricing. The price you get in Lagos, Abuja and Port-Harcourt, they are not good indices. There is already an apathy against imported rice because people have now realised the one with better quality and those countries selling it cheap are doing so just to get rid of it.JAMB Portal

Read Other News:

“However, I think a 70 per cent increase by the NBS is not realistic and too high. The bureau may be carrying out these information but I tell you the prices are bit cheaper than what is reported. If you go to real markets and ntoit artificial ones. to put things correctly, there is definitely food inflation and it is skyrocketing but if we go by these commodities, we are likely to be lying to our selves and the general public.”NYSC Portal

“The past administration invested a lot in rice production and i think they should be applauded. We used to import rice to the tune of trillions but that has changed,” he added.

Check JAMB Result

Check and Confirm: How much is Dollar to Naira