Rice Price Crash Hits Local Producers as Consumers Benefit — Peter Dama

 Peter Dama paused briefly, took a deep breath, and spoke slowly, choosing his words with care.

“Yes. Rice prices have crashed, and Nigerians are benefiting. But as local producers, we are losing big.”

Dama, a rice farmer and industry stakeholder, made the remark while reacting to the recent sharp drop in the price of rice across markets in Nigeria. While many households have welcomed the development as a relief amid economic hardship, local rice producers say the situation is threatening their survival.

According to Dama, the falling prices have significantly reduced profit margins for farmers who are still grappling with high production costs, including fertiliser, seedlings, transportation, and insecurity on farmlands.

“Consumers are happy, and that is understandable,” he said. “But most people don’t see the other side. Farmers invested heavily this season, and with prices dropping this fast, many of us may not recover our costs.”

He attributed the price crash to increased rice supply, import pressures, and weak purchasing power, noting that without adequate government support and protective policies, local producers could be forced out of business.

Agriculture experts warn that while short-term price reductions benefit consumers, sustained losses for farmers could discourage production in the long run, leading to shortages and higher prices in the future.

Dama called on the Federal Government to urgently intervene with policies that balance consumer relief with protection for local farmers, including access to subsidised inputs, storage facilities, and guaranteed minimum pricing.

“As a country, we must decide whether we truly want food security,” he said. “If farmers keep losing, the consequences will come sooner than we think.”