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Rice prices rise by 123%, dwarfing the new minimum wage

Nigerians now buy a 50kg bag of local parboiled rice for an average of N105,000, more than the country’s new minimum wage of N70,000, according to a market survey by BusinessDay.

Since the removal of petrol subsidies and the devaluation of the naira, the price of local parboiled rice, a key staple in the Nigerian diet, has risen 123 percent year-on-year, while a 50kg bag of foreign parboiled rice now sells will be N130,000.

The continued rise in the price of local parboiled rice is an indication that small farmers are currently unable to meet local demand for grains due to uncertainty, high production costs and logistical problems.

Currently, rice traders in Lagos – the country’s commercial hub – are hoarding the commodity in anticipation of a higher price during the festive season when demand for the product is usually higher.

“The price of local parboiled rice is rising because millers are struggling with high production costs,” said a trader at Daleko market in Mushin, Lagos, who gave her name as Bose.

Bose attributed the rise in foreign parboil rice to volatility in exchange rates while calling on the government to come to the aid of poor Nigerians.

In July, the federal government announced the suspension of import tariffs on rice and some other essential foods to address the country’s increasing food insecurity.

However, the policy is yet to be implemented as announcements and food prices continue to rise.

“We still do not grow enough rice to feed our population and the government has yet to address the issues of insecurity. Also, kidnappings pose a major threat to food security in the country,” AfricanFarmer Mogaji, managing director of X-Ray Consulting, said in a response to questions.

Also Read: FG withdraws plan to sell 50kg bags of rice to officials for N40,000

He further said the floods across the country had also impacted the country’s rice production this year, citing the recent ban on grain exports to Nigeria by the Nigerian government as another threat to millers.

“The Nigerian government has banned grain exports to Nigeria. This means millers will not have enough rice for their mills as most of it comes from neighboring countries,” Mogaji said.

He explained that millers cannot increase their production if farmers do not increase their production, stressing that many agricultural lands have been abandoned due to insecurity issues.

Mogaji’s claim is evident in the gross domestic product report for the second quarter of 2024, where the sector’s growth slowed to 1.4 percent compared to 1.5 percent in the corresponding quarter of 2023.

“How can I afford to buy a bag of rice for N105,000 when I only earn N100,000? What is left for me to feed my children and support ourselves,” said Chioma Okeke, a teacher who was at Ketu market to do some shopping.

“We have done it but how far can we go when prices are skyrocketing and the recent removal of subsidies means prices will rise even further,” Okeke said.

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