West African rice prices slump to one-year low amid weak demand, oversupply
Rice prices in West Africa have dropped to a one-year low due to weak demand and excess stocks. 5% broken parboiled rice fell to US$409/mt CFR Cotonou, down US$161 from last year. Nigeria’s harvest and direct imports from Thailand are reducing demand through Benin, while Madagascar also faces price pressures.
WEST AFRICA – Rice prices in West Africa have fallen to their lowest levels in a year, weighed down by sluggish demand and excess inventories across key import hubs, according to S&P Commodity Insights.
Platts, part of S&P Global Commodity Insights, assessed 5% broken parboiled rice at US$409 per metric tonne CFR Cotonou on October 1, for December shipments. The figure represents a sharp US$161/mt decline compared to the same period in 2024, underscoring the pressure on import-dependent markets in the region.
Benin’s port of Cotonou has long served as a key transit hub for rice imports, supplying much of Nigeria’s consumption.
Rice sourced from India and Thailand typically enters the region through Cotonou before being re-exported informally into Nigeria. However, this trade flow is facing disruption.
Traders reported that some Nigerian buyers are increasingly bypassing Benin, sourcing rice directly from Thailand. “The vessels from BUA, Olam and TGI carry 40,000 mt each of regular parboiled milled rice,” one market participant said, adding that this shift has stifled demand through Cotonou.
Nigeria, the region’s largest rice consumer, has entered its paddy harvest season, adding more downward pressure on retail prices.
“At the start of 2025, a 50 kg bag of rice cost Naira 85,000, but it has now dropped to Naira 55,000. As Nigeria continues its harvest season, prices may decrease further,” a trader in Lagos observed.
This trend has been mirrored in Benin, where the cost of a 50 kg bag of rice fell to 14,500 CFA francs (US$23) in October, down from 17,000 CFA francs (US$27) in July. “There are no buyers and stocks are overflowing. Prices in Cotonou are lower than those for new orders from India,” a buyer noted.
The weakness is not confined to West Africa. In Madagascar, another key rice market, recent civil unrest has disrupted demand, leading to even lower prices than those offered by Indian exporters. “The current prices are unmanageable and they are lower in Madagascar than in India,” an importer said.
The broader trend highlights both the vulnerability and the importance of rice trade flows in Africa.
West Africa remains heavily reliant on imports to supplement domestic production, with Nigeria, Senegal, Ghana, and Côte d’Ivoire among the top buyers. India and Thailand dominate supply to the region, though policy shifts, such as India’s occasional export restrictions, have historically influenced prices.
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Source : Milling MEA
