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Price Hike in Rice Tied to Sabotage, Artificial Scarcity – Farmers’ Associations

Local Rice Farmers Accused of Manipulating Prices as 50kg Bag Hits N80,000

byFemi Adeboye
August 17, 2025
in Business, News
Rice farm to portray price hike

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…price hike can be linked to a cartel that wants to frustrate the government’s effort.

LAGOS, NIGERIA – The iNews Times | Leading figures in Nigeria’s rice farming community have blamed the recent spike in the price of the staple food on a network of unscrupulous actors, ranging from manipulative farmers to profiteering middlemen, accusing them of deliberately undermining government efforts to stabilize prices.

The allegations surfaced during separate interviews with the News Agency of Nigeria in Lagos on Sunday, as the price of a 50kg bag of local rice rose to between ₦65,000 and ₦80,000, up from ₦45,000–₦55,000 just two months ago.

Mr. Sakin Agbayewa, Vice Chairman of the All Farmers Association of Nigeria (AFAN), described the situation as a “one step forward, five steps backward” crisis, citing deliberate manipulation in the rice value chain.

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“The price hike can be linked to a cartel that wants to frustrate the government’s effort,” Agbayewa said.

“While the waiver on rice importation was in effect, the price dropped, but even then, some players were warehousing. Now that the waiver has expired, they’re creating artificial scarcity.”

He explained that although the Federal Government provided input support to select farmers, including 75% subsidies on production costs and free fertilisers, many recipients allegedly failed to cultivate any rice at all.

“There is a high level of insincerity and dishonesty among our people. Some unscrupulous farmers, middlemen, and even retailers can be blamed,” he said.

“Some are repackaging local rice in foreign bags to deceive buyers and inflate prices.”

Echoing these concerns, Mr. Raphael Hunsa, Chairman of the Rice Farmers Association of Nigeria (RIFAN), Lagos Chapter, urged the government to bypass gatekeepers and engage directly with “real farmers” to address the persistent price hikes.

“If the government fails to support local rice farmers effectively, the price will keep rising,” Hunsa warned.

“They should invite us to the policy table. We know our problems and how they can be solved.”

He emphasized that while the government’s current efforts are commendable, their interventions must reach genuine grassroots farmers to make an impact.

“Farmers must also act responsibly. Inputs given by government should not be sold off. They were meant for continuity, not profit,” he added.

At the retail end, market dealers corroborated the effect of the waiver’s expiration. At Oja Oba Market in Agege, a rice dealer, Mr. Mustafa Aliu, said:

“The price of rice is currently between ₦70,000 and ₦80,000 for a 50kg bag. I sell only local rice, and there’s no foreign rice in my store. We simply sell it the way we bought it.”

Meanwhile, Mr. Temitayo Hakeem, a trader in Iddo, pointed to consumer preference for foreign rice as another pressure point.

“There are bags that sell for ₦145,000 or ₦150,000, depending on taste. Nigerians still chase foreign rice even when we have clean local options.”

The spiraling price of rice has intensified food inflation nationwide, with industry experts warning that unless structural issues are tackled, especially hoarding, lack of monitoring, and poor farmer engagement, Nigeria may face worsening food insecurity.

Femi Adeboye

Femi Adeboye

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