According to the World Bank Food Security Update released at the end of July 2023, prices of agricultural products, exports, and cereals increased by 6%, 4%, and 10% respectively by the end of the month. Additionally, the prices of Maize and Wheat rose, closing at 12% and 14% higher at the end of July 2023.
The report also highlighted that high food inflation was prevalent in most low- and middle-income countries, with inflation rates surpassing 5%. Africa, North America, Latin America, Southeast Asia, Europe, and Central Asia were the most affected regions, experiencing food price inflation exceeding 80% in real terms.
Subsequent investigations by Nairametrics revealed that the price of rice, a staple food in Nigeria, surged by 29% within two months, causing widespread concern among traders and consumers. Nairametrics tracked the price of rice in Lagos, noting an increase from N32,000 in June to N45,000 by the current date.
In the Federal Capital Territory, locally produced rice is currently priced at N37,000 per bag, while imported rice is selling for N48,000.
By the 20th of July, Nairametrics recorded the price of a bag of Mango rice in Port Harcourt at N39,000; Mama’s Pride at N38,000; and Cap rice at N42,000. By August 10, the price had risen to N48,000.
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With the ‘Ember Months’ looming, speculations are rife that the cost of a rice bag might escalate beyond the financial capability of average wage earners by December.
What is fuelling price increases?
Distributors who discussed the matter with Nairametrics attributed the price hike to an increase in transportation costs after the removal of the fuel subsidy on May 29, coupled with the escalating expenses associated with acquiring foreign exchange.
While rice importers were previously unable to access foreign exchange from the I&E window, they claim they obtained it at more favorable rates.
