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Nairametrics
Home Sectors Agriculture

Rice mills in Nigeria closedown after India’s ban on rice exports

Aghogho Udi by Aghogho Udi
August 30, 2023
in Agriculture, Business News, Sectors
milled rice
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The decision of the Indian government in July to halt the exports of the popular non-basmati rice as a measure to keep prices low in the country is having ripple effects far away from Nigeria.

This is according to a report from VOA.  

Nigeria and other West African countries are most reliant on rice imports from India to meet local demands. Although Nigeria has made huge efforts in cutting down its rice imports over the past few years, it still relies on imports to augment local production. In 2021, the country imported $ 5.78 million worth of rice from India.  

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Following the ban on rice exports in India, local rice millers have been forced to shut down production oversupply scarcity.  

Rice mill owners speak 

  • Speaking to Voice of America (VOA), Muhammad Salisu Kuna, a rice mill owner in Kano stated thus, “The Indian rice export ban affected us. The absence of Indian rice has led to a shortage of locally grown rice. It is not sufficient to the number of mills and that has caused the price of rice to soar”  

The Central Bank’s effort to ensure the country meets its local demand for rice saw the processing capacity rise from 350 thousand metric tonnes in 2015, to almost 3 million metric tonnes in 2022.  

Speaking further, Muhammad Sani of the Rice Farmers Association of Nigeria noted that about fifty rice mills have been forced to shut down in Kano state alone over the scarcity of rice.  

  • In his words, “The absence of Indian rice coupled with Nigeria’s border closure with the Niger Republic because of sanctions and farmers’ inability to access their farms because of bandits is hitting hard on rice mills” 

The recent increase in rice prices  

In the past few months, the price of rice has increased significantly in the market. According to an investigation by Nairametrics, the price of rice in local markets increased by 29% within two months.  

The latest food price watch by the National Bureau of Statistics reveals that the price of a kilo of rice increased from N555.18 in May to N608.20 in June 2023.  

For the past three years, a slew of factors has seen food prices, especially grains, increase beyond the reach of the poor. The war in Ukraine, insecurity, flooding of 2022 and others can be attributed to being responsible for food price increase.  

To stem this increase, the Federal government has declared a state of emergency on food production and recently ordered the distribution of grains across the country.  


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Tags: Rice mills
Aghogho Udi

Aghogho Udi

My name is Aghogho Udi, a writer, journalist, and researcher, deeply intrigued by the political economy of Nigeria and the broader African context. My focus lies in shedding light on the intricate connections between macroeconomics and politics, offering valuable insights that foster comprehension of Africa's prevailing economic landscape and the world in general.

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Comments 6

  1. Travis says:
    August 30, 2023 at 10:18 pm

    How can Nigeria depends on indian for Rice?
    They want to tell us that all the effort former president Buhari’s effort is a wast?

    Reply
    • Nathaniel Igba says:
      August 31, 2023 at 9:23 am

      Why not? Have you forgotten that here in Nigeria, many farmers fear to go to their farms due to fear of the bandits, boko haram and the other terrorist groups..Some of the farmars that were bold and went to their farms never returned alive.
      Without adequate security, almost all economic activities, not just farming, will be paralyzed.

      Reply
  2. Enquirer says:
    August 31, 2023 at 12:37 pm

    Any link to the original news piece? Any links to the VOA piece?

    Reply
  3. Dr Bunmi Binitie says:
    August 31, 2023 at 6:57 pm

    This headline is misleading!! From the article, it is clear that our rice mills closed down becos of insufficient supply of raw rice from our rice fields simply becos farmers are endangered by insurgents and not becos of ban of rice imports from India….OMG!!

    Reply
    • Sirxbit says:
      September 1, 2023 at 7:39 pm

      Oga seems you are the one misleading the public. It is clearly stated there that mills depend on rice from India because farmers in Nigeria can’t meet the demand due to insecurity and the rest.

      Reply
  4. Olalekan says:
    September 1, 2023 at 11:54 am

    So rice farmers in Nigeria just started to experience security challenges in accessing their farmlands?

    Pls get serious.

    Reply

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