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West Africa’s rice import reliance disrupted by India’s export ban, Terra Firma Commodities steps in with local production initiatives

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Rice has long been a staple in West Africa, served with curries made from meat, vegetables, or seafood. However, nearly 40% of the rice consumed in the region is imported, primarily from India, Thailand, Vietnam, and Pakistan, despite West Africa’s abundant arable land and freshwater resources. This reliance on imported rice is driven by economic efficiency, as countries often prioritize cultivating high-value cash crops for export while importing rice to meet domestic demand.

West Africa has become the largest importer of rice globally, accounting for 20% of the world’s rice trade. Since 2014, Terra Firma Commodities, co-founded by Vivek Gahlaut, has played a significant role in supplying rice to markets in countries like Ivory Coast, Burkina Faso, Mali, and Ghana. The trade, which created jobs and ensured affordable nutrition for the region, functioned efficiently until a major disruption in September 2023, when India, the world’s leading exporter of rice, banned the export of all white rice varieties except basmati. This led to a sharp rise in global rice prices, with broken white rice prices spiking from $400 to $600-650 per metric ton in a single trading day.

The export ban has made imported rice significantly more expensive than locally grown varieties, exposing the vulnerability of West Africa’s heavy reliance on imports. In response, Terra Firma Commodities has begun shifting its approach to focus on building local agricultural capacity. The company has initiated collaborations with West African governments and cooperatives to support domestic rice production. Efforts include providing farmers with advanced tools, milling equipment, and training to enhance efficiency and productivity.

While achieving self-sufficiency in rice production may take years, Terra Firma Commodities is committed to working toward long-term solutions. The company aims to help West Africa reduce its dependence on imported rice and establish a resilient agricultural economy. By engaging with local communities and fostering innovation, Terra Firma hopes to address the current challenges and contribute to a more sustainable future for the region’s rice market.

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