Increase that affects purchasing power

Consumers are disappointed by the increase in the price of a local variety of rice, which has reached 3,700 ariary, or 0.72 EUR per kilo. This variety is considered a high-quality rice and is very popular in the markets. However, this type of rice runs the risk of being snubbed by consumers due to low purchasing power.

At market stalls, only « Tsipala » rice can be bought in shops and grocery stores at 3,600 MGA per kilo. « Makalioka » costs 3,650 MGA per kilo and the famous « Dista » costs 3,500 MGA. Indeed, price increases during the year are nothing new. However, in the current economic climate, the rising cost of this staple food for the Malagasy population, as well as that of other foods in general, is putting a further strain on consumers’ purchasing power.

Madagascar is increasing its rice imports and reselling them in popular markets. This is a system put in place by the government to combat rising rice prices so that rice shortages are not on the agenda or a concern. However, the ability to import much more remains limited due to the depreciation of the national currency against foreign currencies such as the dollar or the euro. The situation is likely to worsen in the coming days and weeks due to the threat of severe weather and rapid inflation caused by global economic conditions.

The Ministry of Agriculture and Livestock (MINAE) has set its projections for achieving total food self-sufficiency. For the 2023-2024 season, the Malagasy authorities hope to produce 4.081 million tons of white rice.