N80,000 for 50kg: Cost of Rice to Further Increase by 32% as Christmas Approaches

• A recent AFEX Wet Season Crop Production report found that rice increased by 37% this year
• This was caused by varieties of factors, including the long-lasting consequences of the 2022 floods
• The report suggested that the price will increase by 32% during the 2023/2024 crop production year

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

AFEX Wet Season Crop Production Report for 2023 has revealed that the cost of rice saw a 37% increase this year alone.

According to the report, this was caused by various factors, including supply chain interruptions, increased global demand, and the long-lasting consequences of the 2022 floods, contributing to the substantial gap between price and output increases.

It highlighted that the increasing rice consumption in Nigeria has led to a supply gap of about 2 million metric tonnes.

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Cost of rice

According to Daily Independent findings, the present rates of a bag of rice in Nigeria depend on the brand and come in four different weight categories—50kg, 25kg, 10kg, and 5kg.

These have skyrocketed, making the situation untenable.

The average cost of a 50kg bag of imported rice is currently N55,000, whereas the average price of a 25kg (half) bag is N28,000.

Brand-specific prices indicate that 50kg bags of My Food brand cost N60,000; My Choice brand N55,000; Caprice N60,000; Royal Stallion N55,000; and Mama rice N55,000.

For Nigerian rice brands, however, 50kg of Abakiliki rice costs N50,000, a similar amount of UMZA rice costs N50,000; Big Bull rice costs N69,000; Elephant rice costs N50,000; and Ofada rice costs N80,000, respectively.

Price to continue increasing

The new report has shown that paddy rice will further skyrocket by 32% in the 2023/2024 crop production year, which already kick-started on November 25.

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This means that Nigerians may soon buy a 50kg bag of rice of foreign rice between N66,000 and N80,000 or more.

The AFEX report noted that the increase will be influenced by India's export ban on paddy rice and the lingering effects of the 2022 floods.

As Nigerians look forward to the Christmas celebration, this has raised uncertainty among consumers already burdened by the high cost of living in the country.

"Lagos N45,000/50kg": Nigerian states with highest and lowest prices of rice

Legit.ng also reported that the World Food Security Update revealed that at the end of July 2023, the prices of agricultural products, exports, and cereals spiked by 6%, 4%, and 10%, respectively.

Also, the prices of maize and wheat increased to close at 12% and 14% at the end of July 2023.

Per the report, high food inflation was noticeable in most low-and middle-income countries, with inflation rates exceeding 5%.

Source: Legit.ng