Rice consumption has been on the steady rise beyond the reach of local supply, leading to a supply gap of about two million metric tonnes annually. This is according to to new report. This has led to the rise of over 37 percent increase in the price of commodity in 2023.

AFEX Wet Season Crop Production Report 2023 said ‘Rice consumption in Nigeria has been steadily increasing, aligning with the consistent growth of the rice market, nearby matching the annual population growth projection of 2.6m metric tonnes annually. So far, Nigeria has spent over $15bn in the past decade to meet its expanding rice consumption despite its potential to be a net rice exporter”.

Globally, rice prices reached their highest point in nearly 12 years this year, primarily due to India’s ban on Rice exports and the potential impact of El Nino on production in key regions. These factors along with rain-induced disruptions and variations in quality during vietnam’s summer-autumn harvest have further contributed to the price surge.

In Nigeria, the price of rice has increased by over 37% driven by reduced production in 2022 due to the effects of flooding during wet season and also due to ripple effects of the international market dynamic.

culled from PUNCH