Wide Thailand-India price gap draws Nigerian demand to Indian parboiled rice
Fresh Nigerian demand for Indian parboiled rice has emerged as Thai rice prices rise amid supply constraints. India’s 5% broken parboiled rice remains significantly cheaper, prompting importers to seek Indian supplies under reduced Nigerian import duties. Market participants expect India to capture most new demand due to its strong price advantage.
The Indian rice market is seeing fresh Nigerian demand for parboiled rice on firmer Thai rice prices amid a supply crunch and rising local costs, market sources told Platts June 17.
The fresh demand from Nigeria could support Indian export prices and increase trade activity. The buying interest comes after Benin imposed import restrictions and Nigeria reduced import duties, moves that market sources said could help boost Indian rice exports.
Platts assessed Indian 5% broken parboiled rice at $340/mt FOB June 17, compared with Thai 100% parboiled rice at $474/mt FOB, leaving Indian origin at a $134/mt discount.
A Nigeria-based importer said some importers have already started sourcing rice from India and are likely to import duty-free milled rice under recently granted concessions.
Most milled rice, particularly Indian parboiled rice, has traditionally entered Nigeria through cross-border trade via Benin. However, industry sources said importers are now required to obtain licenses to import rice directly into Nigeria.
A Gurgaon-based trader said that amid rising Thailand prices, Nigerian demand for imports has moved to India. The trader added that there is demand for about 30,000-35,000 mt of parboiled rice for now.
A Nigerian importer has secured a duty-free license to import around 150,000 mt to Nigeria, a Delhi-based trader said. Negotiations are underway regarding payment terms with a Nigerian importer, and demand is strong for a full vessel cargo load; however, despite high Thai rice prices, Nigeria is likely to still purchase some volumes from Thailand due to Thailand’s premium quality, the trader said.
Market participants said the wide price gap is likely to keep Nigerian demand focused on India.
“We have supplied Nigeria in the past when Thai parboiled rice was priced competitively against India. At current levels, Thai rice is around $130/mt higher than Indian origin, so Nigerian buyers are unlikely to switch. Any new demand generated by lower import tariffs is expected to favor Indian rice because of its price advantage,” said Anurak Deesirisathien, sales head at Asia Golden Rice Co., Ltd.
Another Thailand-based exporter echoed the view, noting that India remains the most competitive supplier to the Nigerian market.
“India is likely to be the primary beneficiary of Nigeria’s lower rice import tariffs, as Indian rice remains significantly more competitive on both price and freight. Thailand effectively lost the Benin market several years ago, and Nigeria has not been a meaningful destination for Thai rice exports recently. Even if Nigerian import demand increases, the current price gap means Indian origin is expected to capture most of the business,” said another Thailand-based rice exporter.
According to data from the Thai Rice Exporters Association, Thailand exported 102,890 mt of rice to Nigeria in 2025, up 195% year on year. However, no Thai rice exports to Nigeria were recorded during January-March 2026.
India’s direct rice exports to Nigeria were 12,948 mt in FY 2025-2026 (April-March), down by 89,740 mt year over year, according to data from the Agricultural and Processed Food Products Export Development Authority, amid a rise in cross-border trade through Benin.
Market participants expect Indian exporters to remain Nigeria’s preferred suppliers as long as the current price advantage persists, though the pace of purchases will depend on the rollout of import licenses and payment arrangements.
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Source : S P Global
