The decision by the Indian government in July to halt the exports of non-basmati rice is having far-reaching effects on Nigeria and other West African countries that heavily rely on Indian rice imports to meet local demands. While Nigeria has made substantial progress in reducing its rice imports over the years, it still depends on imports to supplement domestic production. In 2021 alone, Nigeria imported $5.78 million worth of rice from India.
The ban on rice exports from India has led to a shortage of the popular commodity in Nigeria, causing local rice millers to suspend their production due to scarcity of raw materials. Muhammad Salisu Kuna, a rice mill owner in Kano, expressed the impact of the ban, stating, “The Indian rice export ban affected us. The absence of Indian rice has led to a shortage of locally grown rice. It is not sufficient to meet the number of mills, and that has caused the price of rice to soar.”
Despite efforts by the Central Bank to enhance local rice production capacity, the scarcity of rice due to the absence of Indian imports has led to the closure of approximately fifty rice mills in Kano state alone. Muhammad Sani of the Rice Farmers Association of Nigeria highlighted the compounding challenges, including the closure of the border with the Niger Republic and farmers’ difficulties accessing their farms due to security concerns.
Over the past few months, the price of rice has surged significantly in the local market. According to Nairametrics, the price of rice has increased by 29% within a two-month period. The National Bureau of Statistics also reported that the cost of a kilogram of rice rose from N555.18 in May to N608.20 in June 2023.
Various factors have contributed to the rise in food prices, particularly grains, over the past three years, including the conflict in Ukraine, security challenges, the 2022 flooding, and more. To address the escalating food prices, the Nigerian Federal Government declared a state of emergency on food production and initiated the distribution of grains across the country.
As Nigeria navigates these challenges, stakeholders in the rice industry are closely monitoring developments and exploring strategies to stabilize the supply and prices of rice in the local market.
