Dealers Crash Thailand Rice Price, 50kg Bag Sells For New Rate, Neighbouring Countries Pay Less

• The prices of Thailand parboiled rice have plummeted due to the global oversupply caused by India’s production.
• However, Nigerians pay about 79% more or N58,000, for a 50kg bag of rice from neighbouring countries such as the Benin Republic.
• Findings show that Thailand’s rice price in the Benin Republic dropped by 14% at an estimated landing cost of N21,600 per 50kg bag.

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The global rice glut has crashed the price of Thailand parboiled rice from $502 to $390 per tonne or N12.480 per 50kg bag, leading to a drastic drop.

However, Nigerian consumers reportedly pay about 79% or N58,000 per 50kg on smuggled parboiled rice from neighbouring countries such as the Benin Republic due to a N1.4 trillion shortage in local production.

India floods the market with rice

According to reports, export restrictions by India, the world’s largest producer, have been removed, leading to a glut in the global market.

Findings show that India’s rice stockpile totalled about 63.09 million in April, almost five times its government-approved target.

According to data from the Food and Agriculture Organisation (FAO), global rice production would reach 543.6 million metric tons between 2024 and 2025, with a total supply hitting 743 million tonnes, above the projected demand of 539.4 million tonnes.

Rice price crash, but Nigerians pay more

Reports say that rice prices began to crash in April 2025 due to India’s decision to lift the 2022 export embargo.

The move reportedly drove Indian grain prices to a 22-month low, with prices in Thailand and Vietnam declining to their lowest in three years.

The New Telegraph reports that Nigeria has continued to depend on the global market to meet its rice needs, despite the longstanding import ban.

Nigeria’s fastest-growing import routes included India, with a $2.87 million yearly increase.

Thailand and Vietnam ramp up exports

Thailand and Vietnam have reportedly scaled down exports due to a global glut, leading to Thailand’s exports falling by 30% in the first quarter of 2025, and are projected to fall by 24% in 2025.

Legit.ng earlier reported that in January, Nigeria received a 32,000-tonne cargo of brown rice from Thailand under the 150-day duty-free import window announced by the government to ease food inflation.

In March this year, Thailand’s rice export to the Benin Republic crashed by 14% from $502 to $432 per tonne, at an estimated landing cost of N21,600 per 50kg bag in the country.

Rice: Pakistan and Vietnam cut prices in West Africa

Additionally, Pakistan and Vietnam have cut prices to allow them to compete with Thailand in the West African market.

An investigation shows that dealers sell a 50kg bag of rice in Nigerian markets at N56,000 and N58,000 to consumers.

In April, the Nigeria Customs Service (NCS) in Lagos intercepted 3,832 bags of 50kg of foreign rice heading to the southeast.

Experts have said that rice production in Nigeria will decline from 5.60 million tonnes to 5.22 in the 2024/25 season, while paddy rice is also projected to decline to 8.30 million tonnes.

Declining rice production sparks concerns

Nigeria is facing the risk of a substantial rice supply gap, with estimates indicating a shortfall of approximately 2.18 million tonnes, valued at around N1.43 trillion, due to decreasing production levels.

For the 2024/2025 agricultural season, milled rice output is projected to fall from 5.60 million tonnes to 5.22 million tonnes, while paddy rice production is anticipated to decline from 8.90 million tonnes to 8.30 million tonnes.

According to the National Bureau of Statistics (NBS), rice consumption in Nigeria is expected to increase to 7.4 million metric tonnes by 2025, driven mainly by rising consumer preference as rice remains one of the more affordable staple foods.

Despite this growing demand, production difficulties are likely to push rice prices upward, with the cost of paddy rice forecasted to climb from N1.10 million to N1.30 million per metric tonne by the third quarter of this year.

Rice dealers crash prices by N20,000 per 50kg bag

Legit.ng previously reported that the price of rice has crashed by N20,000 as dealers reported a glut in the market after Christmas.

Legit.ng exclusively gathered that the price of the commodity, which sold for N85,000 in January, has crashed to N65,000 per 50kg bag.

A market survey conducted by Legit.ng shows that dealers also crashed the prices of other essential commodities.

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

Source: Legit.ng