Nigerians may experience some reprieve again in the prices of foreign parboiled rice following a global glut in major producing countries.
The price crash is due to oversupply in India, the world’s largest producer. For the second season, this has increased global stockpiles, forcing rice prices to their lowest in 15 years.
Since February, prices of local and foreign rice have reduced and remained relatively stable.
Findings show that a 50kg bag of foreign parboiled rice has crashed to N65,000 from N93,000 in January, showing a 28% decline year-to-date.
According to a BusinessDay report, India’s five per cent broken parboiled variety was sold at $500 to $510/mt as of Monday, April 21, 2025, up from $530 to $536 last week
Thai’s 100% broken rice, which was sold at $413/mt in March, crashed to $405 in April, representing an $8 price drop.
Experts say they expect further price drops due to the current glut in the global rice market.
Chairman of the Federation of Agricultural Commodity Association of Nigeria (FACAN), Victor Iyama, said the global price crash means that Nigeria will witness a drop in prices.
He asked Nigeria to boost its local production instead of depending on a global market for cheaper prices.
According to reports, India experienced extreme weather conditions caused by El Nino, which drove the country to stop rice exports, causing the commodity’s price to surge during that period.
However, with export restrictions lifted, an increase in rice supply is expected to enter the international market, which may lead to a further price drop.
The Food and Agriculture Organisation (FAO) said the decline in rice prices began in September last year when India lifted export restrictions, including a 20% duty on Thai broken white rice and parboiled rice.
The country also pegged rice prices at $950 per ton as the minimum export price for basmati rice to end food inflation.
The organisation disclosed this in its latest rice update, noting a decline in export prices for Indica rice from major exporters in December, attributing the drop to a slowdown in fresh sales and strong competition for market share.
Also, the currency crash against USD contributed to price reduction, causing the downward pressure already set by India’s abundant Kharif crop supplies.