Market Dynamics: Prices of Paddy Drop in States as Dry Season Harvest Begins

As Nigeria’s agricultural sector experiences a significant shift in the market dynamics of paddy, the country is witnessing a notable decrease in the prices of this essential commodity.

The price drop is primarily attributed to the ongoing dry season harvest, which has increased the supply of paddy in the market.

This development is a much-needed relief for consumers and processors alike, as it follows a period of high prices and fluctuating market conditions.

In states like Kebbi, Niger, Jigawa, Taraba, and Katsina, the price of paddy has witnessed a significant reduction in recent weeks.

In Kebbi, for example, the price of a 100kg bag of paddy has dropped to between N43,000 and N45,000, from a previous range of N55,000 to N70,000.

Similarly, in Niger, the price of paddy has decreased to between N39,000 and N42,000 for a 100kg bag, compared to the earlier price of N45,000.

The decrease in paddy prices can be attributed to several factors, including the ongoing dry season harvest, the relative appreciation of the naira, and the reopening of the Niger Republic border.

This has led to a higher supply of paddy in the market, consequently driving down the prices.

However, despite the price reduction, the cost of processing and transportation remains a concern for rice millers.

The high cost of electricity and diesel, coupled with transportation expenses, has prevented the price of locally produced rice from dropping significantly.

As a result, the price of locally produced rice has remained relatively high, with a 50kg bag of Thailand rice selling for N66,500, compared to the previous price of N87,000 and above.

The government and other stakeholders must work together to address these challenges and support the agricultural sector’s growth.

This includes providing farmers with adequate protection and support, improving the supply chain, and making electricity more affordable for processors.

By doing so, the country can achieve a more stable and affordable rice market, benefiting both consumers and producers.

The recent decrease in paddy prices is a positive development for Nigeria’s agricultural sector.

However, the government and other stakeholders must continue to work together to ensure a sustainable and affordable rice market for all.