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Rice prices in Asia jumped near the highest level in almost 15 years on Wednesday after India slapped more curbs on parboiled and basmati over the previous weekend.
The benchmark price is currently at $646 a ton.
Rice is vital to the diets of billions and contributes as much as 60% of the total calorie intake for people in parts of Africa.
Nigeria depends on rice imports to meet part of its food security needs as domestic production remains insufficient to meet demand.
USDA forecasts 2023/24 rice consumption at 7.3 MMT, a 2 percent decrease from the previous year. Market sources attribute this decline to low consumer purchasing power and the high price of rice.
Rice import for 2023/24 is forecast to increase by 4 percent as flooding curbs domestic production and increases imports, according to the United States Department of Agriculture, USDA.
The quality of most locally produced rice brands is low – due to many impurities such as rocks, dirt, and rice husks. As a result, Nigerian consumers choose imported brands from Thailand, Vietnam, and India, among others.
Nigerians generally prefer long-grain- parboiled rice. Meanwhile, market sources in urban areas indicate an increasing shift in consumer preference by the middle class toward basmati rice.