Rice prices have dropped drastically in several Lagos markets due to a surge in imports through the borders, easing the burden on consumers.\n<\/p>\n
The development, however, has raised concern among traders over reduced profits and business sustainability.\n<\/p>\n
The News Agency of Nigeria reports that 50 kg of rice in Lagos currently sells for between N55,000 and N70,000, depending on the brands.\n<\/p>\n
The traders and consumers who spoke with NAN in separate interviews in Lagos disclosed that the staple food has witnessed a sudden crash in price.<\/p>\n
They noted that both local and foreign rice brands have witnessed a steep drop in price, reversing the surge seen earlier in the year.\n<\/p>\n
In popular markets such as Oyingbo, Arena (Oshodi), Festac Town, and Mile 12, a 50kg bag of local rice that sold for around \u20a685,000 in January now goes for between \u20a660,000 and \u20a670,000.\n<\/p>\n
Similarly, foreign rice, which was \u20a695,000 at the beginning of the year, currently sells for between \u20a665,000 and \u20a675,000, depending on the brands and market location.<\/p>\n
At the Arena Market, Mrs Precious Okoro, a rice dealer, lamented that the recent crash had left many traders struggling to recover their investments.\n<\/p>\n
\u201cWe are selling at a loss. I bought several bags at \u20a680,000 and \u20a685,000 early this year, and now I have to sell them for as low as \u20a665,000. The fall came suddenly, and it\u2019s been tough for us,\u201d Okoro said.\n<\/p>\n
She added that while customers are excited about the new prices, traders are counting heavy losses.\n<\/p>\n
\u201cRice doesn\u2019t spoil easily like other food items, but when prices crash this way, our capital just ties down. Some of us can\u2019t even restock,\u201d she said.\n<\/p>\n
Okoro said that the government needed to be intentional in stabilising the price of rice in the country through regular support to local farmers to boost the supply chain.\n<\/p>\n
\u201cThe government needs to provide incentives for local farmers to increase production and improve the infrastructure for storage and distribution.\n<\/p>\n
\u201cThis will help to reduce the cost of production and make rice more affordable for consumers,\u201d Okoro said.<\/p>\n
At the FESTAC Town Market, a retailer, Mrs Edith Nwaruh, said a 50 kg bag of Pretty Lady rice sold for \u20a657,000, Mama Africa, \u20a662,000, Mama Gold, \u20a667,000, and Big Bull Premium for \u20a673,000.\n<\/p>\n
Nwaruh said the decline began around August, following reports of improved local harvests and increased rice supply from northern states. <\/p>\n
\u201cWe have more rice in the market now. Local production improved, and imports also increased. When there\u2019s too much supply, prices must drop,\u201d she said.\n<\/p>\n
Another trader at the Mile 12 Market, Mr Odion Michael, described the situation as a \u201cdouble-edged sword.\u201d\n<\/p>\n
\u201cConsumers are happy, but traders are weeping. We want prices to be stable, not jumping or falling suddenly. Price stability helps us to plan our business,\u201d he said.\n<\/p>\n
However, a rice farmer and stakeholder who pleaded anonymity attributed the price drop to the reopening of land borders, which has allowed an increased inflow of rice from neighbouring rice-producing countries.\n<\/p>\n
He disclosed that the development had caused a flooding of the market with both imported and locally produced rice, leading to a temporary fall in prices.<\/p>\n
He, however, cautioned that the decline might not be sustainable, warning that prices could surge again before December due to market instability and fluctuating supply levels.\n<\/p>\n
A trader at the Oyingbo Market, Mr Ben Chidi, attributed the development to improved supply and reduced market stockpiles.\n<\/p>\n
He said that the government\u2019s renewed support for local farmers and improved distribution channels contributed to the glut.\n<\/p>\n
This, he said, ensured that consumers, however, are relieved.\n<\/p>\n
Mrs Andriana Okoromaro, a consumer, said the drop was timely given the high cost of other food items.\n<\/p>\n
\u201cAt least rice is affordable again. I used to buy a half-bag because it was too expensive. Now, I can buy a full bag for the family. It\u2019s a big relief,\u201d she said.\n<\/p>\n
Another consumer, Mrs Oluwaseun Alade, said she hoped prices would remain low during the festive season.<\/p>\n
\u201cRice is essential during Christmas and New Year. This drop, if sustained, means more families can celebrate without worry,\u201d she said.\n<\/p>\n
Mrs Ngozi Okolie, a consumer, said the fall is not only linked to increased supply but also to reduced purchasing power among Nigerians, which has lowered demand.\n<\/p>\n
\u201cPeople don\u2019t have much money, even with lower prices. The economy is slow, so even when goods are cheap, sales are not what they used to be,\u201d she added.\n<\/p>\n
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