The local price of rice recorded a significant drop after weeks of price hikes following the closure of Nigerian land borders. Latest Nairametrics Food Price Survey reveals more brands of local rice have now flooded major markets in the country helping to drive down prices of local rice.
The latest household survey conducted by Nairametrics Research Team showed that some new brands of local rice now sell for as low as N17,000. Also, the prices of other items like round shaped tomatoes, bags of onions dropped from what was reported two weeks earlier.
Despite the price drops recorded, some major items such as palm oil, groundnut oil, and foreign rice increased in price. The report includes details on items that witnessed increase in price, items that reduced, special market/items as well as market insights.
Items that recorded an increase in price
- A 50kg bag of Caprice increased by 0.16% to sell at an average of N26,167 compared to an initial N26,125.
- A big bag of Garri (Yellow) now sells for an average of N6,250 from an initial N6,125 indicating a 2.04% increase.
- The price of 5 litres of locally made palm oil spiked significantly by 14.9% as it now sells for an average of N2,125 from an initial average of N1,850.
- 25 litres of locally made palm oil also increased by 17.1% to sell at an average of N11,125 compared to N9,500.
- The price of locally made groundnut oil witnessed significant change, as the 25-litre gallon increased by 25% to sell at a current average of N13,125 from an initial N10,500.
Items that maintained initial price
Below are the items that maintained initial prices over the past two weeks:
- Household cooking gas maintained the same price as recorded last time out; 12.5kg of gas cost an average of N3,900, while 5kg costs N1,525.
- The various noodle brands still sell for the same prices as they did two weeks ago. A carton of Indomie (Hungry man) sells for an average of N3,200, while Chikki (100g) sells for an average of N2,100.
- The price of 50kg bags of brown beans (Oloyin) and white beans still sell for an average of N13,000 and N21,250 respectively.
- A bag of Ijebu Garri and white Garri currently sell at an average of N6,700 and N6,125 respectively.
- Juice brands such as 5 Alive and Chivita cost an average of N500.
Items that recorded price reductions
- A 50kg bag of Royal Stallion rice reduced slightly by 1.56% to an average of N26,333 compared to a previous N26,750.
- The price of a big basket of round shaped tomatoes reduced by 10% as it now sells for N9,000 compared to an initial N10,000.
- The price of a medium and small basket of round shaped tomatoes also reduced by 14.3% and 33.3% to sell at N6,000 and N4,000 respectively.
- A big basket of oval-shaped tomatoes now costs N7,000 compared to an earlier cost of N8,000. This change indicates a 12.5% reduction in price, while a small basket of the same type of tomatoes reduced by 10% to sell at N4,500.
Special Item/Markets
Daleko market now has a new stock of locally made rice. Some new brands of locally made rice in the market include “Arinze”, “Mama Emeka”, “Crown Gold”, “Big Bull”, “Patriot”, “Usir”, LGS” and many others. These items sell between the range of N17,000 and N21,000.
As a follow up to an earlier report, the price of a big bag of new onions crashed by 16.7% as it now sells for an average of N25,000, while a bag of dry onions now cost an average of N22,000, indicating 45% reduction.
The price of maize still varies largely across various markets. However, a bag of yellow maize dropped significantly at Mile 12 market to sell at an average of N14,000 compared to N21,000 recorded two weeks ago. This change indicates a 33.3% decrease.
[READ MORE: Prices of tomatoes, frozen foods, onions, others jump, as low demand hits imported rice]
However, a bag of yellow maize continues to sell at N13,000 at the Mushin market while a bag of white maize costs N11,500.
Market Insights
Poultry owners are stocking broiler chickens as they prepare to do the Christmas business. This is according to a chicken seller who suggested that the commodity is expected to slightly increase in price going into the Yuletide period. Meanwhile, layers are currently sold for N2,000 each while breeders sell for N5,000 each. Another brand of chicken called “Aguntan Ologan” is sold for an average of N4,000.
Nairametrics Research also found out that the price of pepper dropped again in the last two weeks as it now sells for an average of N10,000 compared to N14,000 recorded last time. The price of the item reduced by 28.6% within 15 days.
However, Mr. Babangida, a seller at Mile 12 market, enlightened the Research team, “The price varies according to time. A bag of pepper was sold for an average of N11,000 in the morning, while it costs N10,000 in the afternoon.”
Commenting on the crash in the price of tomatoes, a major tomatoes trader in Mile 12 market said, “The change in the price of tomatoes is not influenced by border closure, rather it is affected by supply in the market, as prices are easily raised when the commodity is not available.
“The price of tomatoes is not constant, it could sell at N15,000 tomorrow and drop to N6,000 the day after if there is a surplus supply of tomatoes in the market.”
Rice dealers at Daleko market confirmed to Nairametrics that there is no foreign rice currently in Nigerian markets. According to a major dealer, “There are various brands of locally made rice, some of which are processed to the standard of imported rice while some are stony. The better quality sells for an average of N21,000 while the latter costs an average of N17,500.
“The only issue is that many dealers now bag these locally made rice into foreign bags as a strategy for marketing, to attract customers to their shops. Retailers now sell local rice in place of foreign rice to consumers at the rate of foreign rice.”
[READ ALSO: Household Survey: Nigerians dump imported rice, others, as prices jump high]
About Nairametrics Food Price Survey
The Nairametrics Food Price Watch is a bi-weekly household market survey that covers the prices of major food items, with emphasis on five major markets in Lagos – Mushin Market, Daleko Market, Oyingbo Market, Idi-Oro Market and Mile 12.
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