Nigeria, Africa’s most populous nation, is facing a looming food crisis as rice, vegetable oil, and other staples prices are expected to soar further this month. The main reason for this is the partial ban on rice exports imposed by India, the world’s largest rice producer and exporter, in July.
According to Meristem, a Nigerian asset management and financial advisory company, the ban has significantly impacted the global rice supply and triggered inflation fears across Asia and Africa. Nigeria is one of the major importers of Indian rice, especially the non-basmati white rice widely consumed by its 211 million people.
The ban also coincides with other factors contributing to the rising food prices in Nigeria, such as higher logistic costs, poor road networks, global energy and fuel prices, foreign exchange shortages, currency devaluation, and insecurity. According to the National Bureau of Statistics, Nigeria’s annual inflation rate accelerated for the sixth month to 24.08% in July 2023, the highest since September 2005.
The cost of a 50-kg bag of rice is expected to reach N60,000 ($145) in September, up from N45,000 ($109) in August, as paddy shortages and increased expenses hamper local production. Many small and medium-sized rice mills have closed down or reduced their capacity due to the scarcity of raw materials and the high cost of inputs.
The situation has sparked panic buying and hoarding among consumers and traders, especially in urban areas where rice is a staple food. Some Nigerians have resorted to alternative sources of carbohydrates, such as cassava, yam, and plantain, but these are also becoming more expensive and scarce.
The Nigerian government has not announced any official response to the food crisis, but some analysts have urged it to take urgent measures to boost local production, improve infrastructure, stabilize the exchange rate, and ensure security. They have also called for more regional cooperation and trade integration among African countries to reduce dependence on external markets.
India’s rice export ban is not the first time a major producer has restricted its shipments to protect domestic supplies and prices. In 2020, Vietnam, the world’s third-largest rice exporter, temporarily suspended its exports due to the Covid-19 pandemic. In 2008, several countries, including India, China, and Thailand, imposed export bans or quotas amid a global food crisis that sparked riots and protests worldwide.
Source: Business Day
