Rice price skyrockets as local production declines

A new report has revealed that rice consumption in Nigeria has been steadily increasing, surpassing the capacity of local supply and resulting in an annual supply gap of approximately two million metric tonnes.informationguidenigeria

As a consequence of this supply-demand mismatch, the price of rice has increased by over 37 percent in 2023.

The information was disclosed in the ‘AFEX Wet Season Crop Production Report for 2023.’ The rising demand for rice in Nigeria has put pressure on local production and supply chains, necessitating imports to meet the shortfall.

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These findings highlight the challenges faced by the country’s agricultural sector in keeping pace with the rising demand for staple foods like rice.JAMB Result

The firm said, “Rice consumption in Nigeria has been steadily increasing, aligning with the consistent growth of the rice market, nearly matching the annual population growth projection of 2.6 per cent at two per cent. This has led to a supply gap of about 2 million metric tonnes annually.”NYSC PORTAL

It noted, “A similar trend is observed in Nigeria, where the price of rice has increased by over 37 per cent year-to-date, driven by reduced production in 2022 due to the effects of flooding during the wet season of that year.”JAMB Portal

The firm also blamed the increase in prices on flooding and the ripple effect of the international market dynamics.

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