Price of 50kg Rice Hits New High as FG Gives 20 Trucks of Rice Each to Governors
- The price of rice has jumped from N76,000 to N80,000 per 50kg bag, a market survey shows
- The dealers disclosed that the increase is due to a high interest rate and freighting costs
- The National Bureau of Statistics has disclosed that Nigeria’s food inflation for June 2024 jumped to 40.87% from 15.63% in May
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
Rice sellers and dealers are quoting a new price for a 50kg bag, despite recent moves by the Nigerian government to crash the food prices nationwide.
A market survey conducted by Legit.ng shows that the price of a 50kg bag of rice has risen from N76,000 to N80,000 as of Tuesday, July 16, 2024.
Source: Getty Images
The Naira’s crash leads to high price
The sellers attributed the increase to scarcity and high foreign exchange used to import the product.
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Most of the dealers disclosed to our reporter that they could not import due to the volatility of the exchange rate, leading to scarcity.
Chidi Ibeh, a dealer in the Ogba area of Lagos, said that as of Friday, July 12, 2024, a 50kg bag of rice was sold for N76,000. However, when they contacted their agents, they were told the price had increased due to the naira crash.
Shipping firms increase cargo fees
He said freighting costs rose as shipping firms increased cargo charges heading to Africa, especially Nigeria.
“Most of my customers who purchased the product last week were lucky because it added more money a few days later.
“Our shipping agents informed us that the cost of bringing the product from Thailand and other Asian countries has increased. We have no choice but to increase prices. Despite having relatively old stocks, we need to add some money so we don’t run at a loss,” he said.
FG gives truckload of rice to governors
The development comes as the Nigerian government distributed 20 trucks of rice each to the 36 states and the Federal Capital Territory (FCT), Abuja.
The minister of Information and National Orientation, Mohammed Idris, disclosed this on Monday, July 15, 2024, after the Federal Executive Council meeting.
According to reports, the minister said the move is the first step as the government aims to address food shortage and inflation in the country.
Idris asked the governor to ensure the effective distribution of the grains to the society’s most vulnerable.
Food inflation rises in June
Meanwhile, a recent report by the National Bureau of Statistics (NBS) has put Nigeria’s inflation rate for June 2024 at 34.19%.
The report noted that food inflation jumped 40.87% monthly from 15.62% compared to the same period in May.
The NBS said.
“On a month-on-month basis, the Food inflation rate in June 2024 was 2.55% which shows a 0.26% increase compared to the rate recorded in May 2024 (2.28%).”
Rice price soars again
Legit.ng earlier reported that the price of rice had spiked again after falling marginally in April 2024 to N72,000 per 50kg bag as the naira strengthened against the US dollar.
A previous report by Legit.ng revealed that the price of parboiled rice dropped for the first time this year in April, which relieved families and reduced living standards across the country.
A market survey across Lagos and significant cities shows that in four months, the price of a 50kg bag of rice has decreased by 20%, from an average of N90,000 to N72,000.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
