Rising Rice Consumption Spurs 37% Price Surge, Reveals AFEX Report

A recent report by AFEX, the agricultural commodity trading firm, has brought to light the surge in rice consumption in Nigeria.

The AFEX Wet Season Crop Production Report for 2023 indicates that the country’s rice consumption has been steadily increasing, contributing to a consistent growth in the rice market.

The report highlights a 37% year-to-date increase in the price of rice in 2023.

According to AFEX, despite Nigeria’s potential to be a net rice exporter, it has spent over $15 billion in the past decade to meet the expanding demand for rice.

Globally, rice prices have reached their highest point in nearly 12 years due to factors such as India’s ban on rice exports and potential production disruptions from El Nino in key regions.

In Nigeria, the 37% price surge is attributed to reduced production in 2022 caused by flooding during the wet season.

The report anticipates a 4% increase in rice production and expects the price of paddy rice to rise by around 32%.

While the Northwest region accounts for 72% of the total rice production in Nigeria, the report underscores the need for strategies to bridge the supply gap and ensure sustainable rice production to meet the growing demand in the country.