Price of 50kg rice drops to N54,000 amid oversupply, rumoured poison

The cost of a 50-kilogram bag of rice has fallen to an average of N54,000, triggered by rumours about poisonous rice circulating in the market and an oversupply of the staple, especially from India, according to a recent S&P Global report.

Previously priced at around N58,000 in April, the price decline reflects reduced demand following widespread claims of deaths linked to rice purchased in Badagry, Lagos State, and Idiroko in Ogun State.

The demand for rice diminished sharply as parents and relatives circulated voice messages warning loved ones against buying or consuming rice, citing WhatsApp messages alleging that over 70 people had died after consuming the allegedly contaminated rice.

Despite the Nigeria Customs Service at Seme dismissing these claims, consumers largely avoided rice purchases, leading to a price dip. Near border areas, the price of a 50kg bag has dropped further to about N50,000.

READ ALSO:Customs reacts to alleged release of poisoned rice seized from smugglers in Seme 

Rice vendors in Badagry expressed frustration over falling sales, releasing videos on Thursday and Friday to refute the deadly rice rumours. The traders insisted, “Nobody died from buying or eating rice,” describing the claims as baseless.

Meanwhile, S&P Global’s recent report highlights a sharp decline in West African parboiled rice prices, attributed to weak demand and substantial oversupply in the region.

Importers in Benin reportedly voiced concerns over falling prices, linking the trend to an abundance of Indian parboiled rice imports.

“The oversupply issue is not limited to Benin. In Togo, importers are facing a similar situation, with abundant availability, yet demand for white rice remains virtually nonexistent.

“A Togo importer said containers were more expensive than breakbulks before, but now the price difference is narrowing, and people are preferring containers at lower volumes. Another trader said container and breakbulk freight prices had narrowed to $3-$4 per metric tonne,” the report stated.

S&P Global also revealed that between April 2024 and January 2025, India exported nearly 4.9 million metric tonnes of rice to West Africa, with Benin as the largest importer, followed by Guinea and Ivory Coast.

As Nigeria, the largest rice market for Benin, continues to import rice illegally from the country, prices for both imported and local rice in Nigeria have fallen in recent weeks.

“The price of Indian imported rice coming through Benin has dropped substantially, from N58,000 per 50 kg bag on April 23 to just N54,000 per 50 kg bag on May 13. Concurrently, local rice prices have also fallen by N10,000, reaching N62,000, according to another market participant,” S&P Global disclosed.

(PUNCH)