Madagascar’s rice imports pressure local farmers as tax relief awaits new shipments
Madagascar has temporarily suspended taxes on imported rice, but retail and wholesale prices remain largely unchanged because current inventories were purchased under the previous tax regime. Imports are securing supply during the lean season while increasing pressure on domestic producers.
Tax suspension has yet to reach consumers
Madagascar has temporarily suspended customs duties and taxes on imported rice to support households during the approaching lean season. However, one week after the measure was announced, consumers had seen almost no change in market prices, according to AllAfrica. Imported premium rice was still selling for 2,700 ariary per kilogram at a grocery store in Ampasampito.
Wholesale prices in Anosibe have shown only a limited decline. A 50-kilogram bag of standard imported rice rose from 96,000 ariary to 120,000 ariary after the application of a 20% customs duty and 5% value-added tax, before easing to 114,000 ariary. Premium rice increased from 105,000 ariary to 130,000 ariary and later stabilized near 125,000 ariary. Wholesaler Jean-Baptiste Randrianimanana told AllAfrica that current merchandise came from stocks purchased while the taxes were still in force, preventing a larger immediate reduction.
New arrivals will determine the price impact
Rufin Zafimihary, director of competition and market regulation at the Ministry of Trade and Consumption, said the suspension would apply to future arrivals rather than cargo already on the market. Those shipments are expected in one or two months, around the end of September or October, although authorities were still awaiting applications from importers.
The government intends to align import volumes with available domestic inventories. AllAfrica reported that Madagascar had imported nearly 350,000 tonnes of rice since January and could require another 330,000 tonnes through the end of the year. The suspension is designed to cover the lean season. Authorities expect local rice to become more abundant again in March, when the taxes are due to return.
Import growth intensifies pressure on farmers
The immediate supply concern sits alongside a sharp increase in Madagascar’s dependence on foreign rice. Anadolu Agency reported, citing the General Directorate of Customs, that the country imported approximately 800,700 tonnes of rice for consumption in 2025, an increase of 205% from 2024. The bill reached about 1,626.7 billion ariary. Trade and Consumption Minister Haingotiana Andriamadison said imports remain necessary because local output does not yet cover total demand and additional supplies reduce the risk of shortages.
The government is targeting 5 million tonnes of paddy in the 2026 season, up from 4.7 million tonnes a year earlier, supported by modernization programs and improved farming techniques. The stakes are broad: INSTAT data show that 78% of Malagasy households practice agriculture and 69% grow rice. Yet imported supplies are weighing on farm income. In Ambohibary, north of Antananarivo, producer Domoina Ranaivo Rasamba said farmers sometimes sell paddy for around 2,000 ariary, or $0.46, per kilogram, well below the average. Tax-free imports may protect consumers during the supply gap, but their timing and volume will be critical for producers when domestic availability recovers.
