Due to the recent flooding that has ravaged some states in the country, Nigerians are advised to brace themselves as a possible surge in the price of rice will likely hit N50,000 before the end of the year.
The surge in the price of rice will no doubt affect a lot of Nigerians, as the staple crop is heavily consumed by so many households in the country. Traders at various markets have disclosed that suppliers keep adding money, attributing it to the recent flood and hike in transportation prices.
They have therefore urged Nigerians to buy now and stock unless they will have to buy it at an exorbitant amount before the year runs out, as there is a continuous increase in the price.
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Currently, reports disclose that a 50kg bag of locally produced parboiled rice sells for an average of N35,000 as against N28,000 which was sold a month ago. A 50kg bag of foreign parboiled rice now sells for N43,000 as against N31,000 a month ago, indicating a 38.7 percent rise in price.
In Nigeria, 33 out of the country’s 36 states have been ravaged by flood, which has caused transportation costs to further surge as tankers conveying petroleum products to the northern states are unable to move as the incidents cut most road networks in the region.
So far, the flood witnessed in the country has crippled so many businesses as experts have estimated that over 70,566 hectares of farmlands and 44,249 houses have been damaged. Also, over 1.4 million Nigerians have been displaced, with about 600 persons reportedly dead.
It might interest you to know that one of Nigeria’s largest farmland of 10,000 hectares located in Nasarawa owned by Olam, which is worth about $140 million has been submerged by floods. Also, thousands of hectares of rice farms in Kano, Jigawa, Taraba, Benue, Niger, Kogi, and Kebbi, among other states, have reportedly been washed away.
There is currently a rising fear among stakeholders in the rice value chain, stating that the recent flooding ravaging farmlands will wreak havoc on rice farms in rice-producing areas which will take a heavy toll on harvest. The average Nigerian also fears that rice, the most consumed food in the country, may surge during the festive season which will lead to increased spending during the period.
The recent flooding in many parts of the country is expected to worsen which has continued to lead to inflation in prices of food and commodities in the country.
The National Bureau of Statistics disclosed that food inflation accelerated in September for the seventh straight month to 23.34 percent, caused by increases in prices of bread and cereals, food products, potatoes, yam, and other tubers, as well as oil and fats.