Cost of Rice Finally Crashes as Global Prices Hit Multi-Year Lows

• Nigeria is benefiting from a global slump in rice prices, with Indian, Vietnamese, and Thai rice export prices hitting multi-year lows
• Despite the price drop, industry leaders predict that prices will remain stable for the rest of 2025 due to surpluses in key exporting countries
• Nigeria continues to import rice, with a notable supply of brown rice from Thailand in 2025, despite tariff restrictions, as the country works to address rising food costs

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Nigeria, a major importer of rice, is currently benefiting from a significant drop in global rice prices, which have fallen to their lowest levels in several years.

Indian parboiled rice export prices hit a 22-month low in April, a month after Delhi lifted the final export restrictions on the grain imposed in 2022, according to data gathered from a Reuters poll.

In Vietnam, prices fell to almost five-year lows, while in Thailand, they dropped to their lowest point in almost three years.

According to traders and industry leaders, prices have found a floor after plunging by about one-third from their 2024 peaks. However, they are expected to remain at this level for the remainder of 2025, constrained by surpluses in all significant exporting nations.

“Even after the recent significant correction, we don’t expect a price rebound. The supply glut will likely prevent prices from increasing,” said B.V. Krishna Rao, president of the Rice Exporters Association.

For the remainder of the year, the group anticipates that prices for 5% broken rice will range between $10 and $390 per ton.

“Prices will remain around the current level unless the monsoon surprises and affects production,” said Himanshu Agrawal, executive director at Satyam Balajee, a leading rice exporter.

Meanwhile, a survey by Legit.ng found that the price of rice now sells between N75,000 and N85,000, depending on the brand. Some months ago, consumers had to have between N85,000 to N95,000 to afford a bag.

Africa to benefit from price decline

Price-conscious customers in Africa and other regions may benefit from decreased rice prices, according to reports.

However, farmers in Asia, who produce about 90% of the world's rice, will likely see their already low profits further diminished.

Nigeria imported $7.26 million worth of rice in 2023, ranking 158th in the world for rice imports. These imports came primarily from the United States, Thailand, Benin, the United Arab Emirates, and India.

India ($5.9M), the United Arab Emirates ($743k), Thailand ($307k), Benin ($101k), and the United States ($95.4k) were Nigeria's top rice importers in 2023.

Between 2022 and 2023, Nigeria's rice imports from India ($2.87M), the United Arab Emirates ($291k), and Thailand ($119k) grew at the fastest rates.

Vietnam, Thailand, and India's rice export prices are declining as a result of increased competition due to India's decision to permit exports of all grades.

In 2025, India's state-run weather bureau predicts above-normal monsoon rainfall for the second year in a row, which will increase output.

Brown rice still imported in Nigeria

The Nigeria Customs Service (NCS) announced on January 20, 2022, that the Federal Government had prohibited the importation of parboiled rice through the nation's seaports.

However, according to sources, the nation received a supply of brown rice in January 2025 as part of its efforts to address the rising costs of food that are putting pressure on consumers.

According to the logistics company DUCAT, which organised the transport, a consignment of 32,000 tons arrived in Lagos.

Following the imposition of a tariff embargo on wheat, corn, rice, and other food commodities last year, the grain from Thailand was brought in, according to DUCAT.

Purchases have generally remained restricted despite the tariff waiver out of concern for local producers.

“Nigeria has been working hard to find solutions to broaden and strengthen its food supply accessibility,” DUCAT Chief Executive Officer Adrian Beciri said in a statement.

Dealers crash price of rice by N20,000 per 50kg bag

Legit.ng previously reported that the price of rice, a staple food, crashed again after rising in March to over N80,000 per 50kg bag.

Findings by Legit.ng showed that sellers reduced the commodity price from N85,000 per 50kg bag to N65,000 as of Sunday, April 13, 2025.

Dealers who spoke exclusively with Legit.ng stated that the crash followed the general crash in cereal prices and other food items.

The article was updated with additional information by the head of the business desk, Victor Enengedi.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng