Rice Prices Drop Nationwide as Traders Panic Over Falling Profit Margins

A growing number of food traders across Nigeria say they are becoming increasingly worried as the price of rice one of the country’s most consumed staples continues to fall in major markets.

While consumers are celebrating the lower prices, traders say the rapid decline is hurting their profit margins and destabilizing the local rice trade.

The concerns were highlighted in a discussion trending on Nairaland, where retailers reported that the downward price shift, though beneficial to households, has created uncertainty for those who recently stocked their shops at higher rates.

According to traders, the price of a 50kg bag of rice has dropped significantly in the past weeks, depending on brand and region. Some wholesalers say they are now selling at near-break-even levels.

“Rice is becoming cheap. Although we like it, as traders we are not happy,” one retailer lamented, noting that those who purchased large quantities earlier in the quarter are now facing losses.

Market analysts attribute the price drop to a combination of factors, including improved supply from local mills, better distribution channels, and increased imports that have eased scarcity. Seasonal harvests in key rice-producing states have also contributed to the surplus currently pushing prices down.

While consumers welcome the relief amid broader economic pressures, traders argue that the unpredictable fluctuations make it difficult to plan ahead. Several vendors are now reducing stock volumes to avoid further losses, while others are calling for more stable policies around rice imports and domestic production.

Economists say the situation reflects a typical market cycle, but warn that prolonged instability could discourage small-scale traders and potentially affect local rice farmers if prices fall too low.

For now, consumers are taking advantage of the unusual affordability, even as traders hope for a more balanced market in the coming weeks.