Report Predicts Price of Local Rice in 2025 as Dealers Sell at New Rates

• A recent report has predicted a sharp increase in the price of locally produced rice in 2025
• The report stated that paddy rice prices would surge by 55% due to several seasonal factors
• The astronomical rise was due to a drop in supply in the market and a surge in demand for the commodity, which surpassed the supply

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The price of locally produced paddy rice is expected to rise by about 55% during the 2024/2025 season, worsening high living standards.

A new report by Afex Wet Season Crop Production 2024 shows a steady increase in rice prices.

The report says that during the season under review, rice prices rose 78%, with the average price hitting N630,000/MT.

Price of rice per tonne to increase

The astronomical rise was due to a drop in market supply and a surge in demand for the commodity, which surpassed supply.

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Also, the Afex report predicts an additional seasonal price increase of about 55%.

The projected rise is caused by the high starting price for the season, estimated at N75,000 metric tons, showing a persistent shortage.

According to the report, paddy rice prices will rise by the third quarter of next year, hitting between N1.1 million and N1.3 million per metric tonne.

The report stated that several factors, such as low access to financing and inputs, delayed and excess rainfall, and insecurity, caused paddy rice to rise in 2024.

Rice hits N95,000 per bag in September

A previous report by Legit.ng shows that the price of a 50kg bag of local rice increased 152.9% per year to N95,738 in September 2024 from N37,853 in September 2023.

Data on selected food prices for September 2024 show that 1kg of local rice was sold for N1,914.77. 

The NBS report also indicated that the price of beans recorded a higher annual increase rate of over 200%.

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Data shows the cheapest, most expensive rice brands

Legit.ng earlier reported that the price of a 50kg bag of local rice increased yearly by 152.9% to N95,738 in September 2024 from N37,853 in September last year.

Data on selected food prices for September 2024 show that 1kg of local rice was sold for N1,914.77.

The NBS report also indicated that the price of beans recorded a higher growth rate of over 200% annually.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng