Prices Of Imported Rice Still Stable in Naija

Prices of imported rice which soared sharply between December last year and early January 2019 due to high demand started declining in late January, but fell further in February, remaining stable since then.

The commodity which had been banned  by the Federal Government three years ago to boost patronage of local rice, still find its way through smuggling  into the Nigerian market, despite the closure of surrounding borders.

The situation seemed not to be beneficial to traders as well as consumers as some of them especially the rice merchants had no option but to smuggle the commodity, paying through their noses to get it in to the Nigeria market, for the purpose of continuing with the business. And as such, consumers are made to bear the brunt, procuring the commodity at an exorbitant rate.

The decline in the prices of the commodity, according to most of the traders interviewed, had not translated into sales and increased purchases due to lack of money.

Findings from a market survey across some states by the Business and Market Intelligence Unit of DAILY INDEPENDENT revealed that prices of imported rice dropped by over 15 and 5 per cent in few markets from January to March 28, 2019.

Reasons for the decline as specified by the survey results were poor sales, availability and lack of purchasing power owing to the state of the economy.

During the week, at the Igbudu Market, Delta State, prices of the commodity were at a sliding trend, especially with a 50kg bag of imported rice still going for between N18,000 and N19,000 down from N21,000 sold previously, just as that of Ogbeogologo Market, Asaba.

Madam Felicia Nwagboi, who trades in the commodity at the Igbudu Market, Delta State, said the price was still on the high side despite the reduction, linking it to high cost of logistics and penchant for foreign goods which had also adversely affected the patronage of local rice.

For Ose Market, Onitsha, the situation was not different as a 50kg bag of imported rice which declined to between N17,500 and N18,000  last month from N19,500 formerly sold had not changed.

This, however, depends on the haggling power of the customer and the brand.

Most of the traders opined that the decrease in the prices of the commodity had not had a positive effect on sales as they connected the situation to lack of money.

That of Itam Market, Uyo, also dwindled to between N15,500 to N16,000 as against N18,000 earlier sold.

At the Nkwo Market, Nnewi, prices of a 50kg bag of imported rice dropped, currently ranging from N18,500 to N19,000  down from N21, 000 sold initially of which many of the traders attributed  to low patronage.

That of the Northern region also witnessed a downward trend especially when compared with what was previously sold. For example, at the Wuse Market, Abuja, prices of a 50kg bag of imported rice that initially went for as high as between N20,000 and N21,000 reduced to between N19,000 and N16,000  but this depends on the negotiating power of the buyer as well as choice of brand.

A lady who came to shop for food items at the Wuse Market, Abuja, in a chat with DAILY INDEPENDENT, said that, the reduction in the prices of the commodity had really not enhanced the purchasing power of the buyers because of the exorbitant prices at which the commodity still attracted.

In Dawanau Market, Kano, prices of the commodity appeared to be lower than that of Wuse Market, Abuja. For example, prices of a 50kg of imported bag rice that fell to 15,000 in January, from 16,500 previously sold still remained stable.

Many of the traders connected the situation to availability and poor sales.

The same could be said for Gboko Main, Market, Benue State, particularly with prices of a 50kg bag of imported rice decreasing slightly by over 5 percent, still currently selling for between N15,500 to N16,000 from N16,500 it earlier attracted.

Gabriel Olaniyi, a trader, at the Gboko main Market, Benue State, alleged that low patronage was principally the main cause of the decline, with the hope that it would   boost sales and encourage part ronage.

At the Lafenwa Market, Ogun State, prices of a 50kg bag of imported rice which dropped to between N12,500 and 13,000 from N15,000  formerly sold had remained unchanged.

The decline in the prices of the commodity at the Lafenwa Market, Ogun State seemed to be quite lower than what is obtainable in nearly all the markets visited owing to proximity to Seme Border.

That of Bodija Market, Ibadan, also still remained stable at between N13,000 and N13,500 since late January, as against N16,000 sold previously. Many of the traders connected the reduction in prices of imported rice to improved supply and low demand.

In Lagos, visits to popular markets such as Daleko, Iddo and Mile 12 indicated that prices of the commodity that dropped since late January 2019 had not changed.

For example, prices of a 50kg bag of imported rice that were initially sold for between N15,500 and N16,000 decreased, remaining stable at between N12,800 and N13,500, depending on the bargaining power of the buyer, brand and location.

Many of the traders, however, linked the situation to availability, poor sales and lack of purchasing power.

Source: Msn.com