‘Inefficient supply system crushes rice consumers’

Al Amin :
Anup Kumar Saha is working as Chief Operating Officer (COO) of Nabil Group, an agriculture-based industry. He completed BBA and MBA from Dhaka University and Flour Milling course from the International School of Milling Technology (Mysore). He also received training in Total Quality Management (TQM) from AOTS in Japan and Global Food Commodity Trade from CIGI (Canadian International Grain Institute) in Canada. Amid the ongoing volatility in rice price in the local market, Anup talked to The New Nation on Saturday.
He said Bangladesh achieved self-sufficiency in rice production and is now third position in the world. Rice production has reached close to four crore tonnes in the country. On the other hand, people’s rice consumption has decreased by around 50 grams in a decade, despite the increase in rice production.
All the people need more or less rice. But the major buyers of rice are the middle class group, whose number is about 5 crore. The demand of the upper class for rice is comparatively less as they are consumers of fine rice and do not require more than 20 kg of it per month, he said.
But the middle class group needs over 40 to 50 kg per month depending on family members as they eat rice three times a day and the high rice price affects them and the low income group and when the prices of coarse rice go up to Tk 60 or more, then their suffering increases severely, Anup added.
Now the question is who is behind the price hike and how the rice market is regulated or managed, he questioned.
He said rice market depends on paddy market and when the paddy market does not remain in right track, then the rice market become unstable.
Besides, uncontrolled movement of middlemen in the market is also destabilizing the market and the rice price is going up gradually due to having no control over the market of paddy, rice and other issues, he added.
On the other hand, having no correct statistic of demand and production of rice in the country, the policymakers are doing mistake in making plan, he observed.
Anup Kumar Saha further said that the country’s rice market has not yet improved systematically and efficiently and a large portion of the supply of paddy is being managed through scattered and unlicensed hoarders.
As a result, they are increasing the price of paddy, even in the full season, although they are purchasing paddy at a low price from farmers, he added.
Basically, they are taking advantage of the weakness of the farmers and by collecting paddy at a low price they are selling it at a high price by keeping that paddy in stock for a few months, he opined.
But if the farmers could keep the paddy in stock, they could get more prices. So, now is the time to implement the ‘Reservation Act’ properly, he said.
Regarding the allegations that corporate companies are controlling the rice market, Saha said, “I can say that the corporate companies have maintained competition in the rice market as rice is still being supplied properly in the rice market.”
“Product pricing is highly dependent on supply management. If overproduction and inventory are adequate and supply or distribution management is inefficient, the benefits of the increased production don’t reach to the consumers,” he said.
“Most of the famines that have occurred in the world are due to the weakness of supply and food distribution systems. So far the production situation in the country is quite good. But there is a lot of weakness in the supply system,” the COO added.
The role of millers in hiking rice prices is negligible. It will be cleared, if you take into account the difference between today’s mill gate rice price and retail rice market, he said.
He further said usually 68 per cent of rice is obtained from one grain of paddy, but in the country it is available at 62-63 per cent as a large portion of the rice is being wasted for the lack of advanced technology in rice crashing. Besides, if the production cost reduces, the price of it will also decrease and the market monitoring will be easier if accurate statistics of production cost of agricultural products are available, he said.
In order to keep the rice market at the right pace, it is necessary to have accurate statistics on the production costs, he added.
On the other hand, if farmers are not paid good prices, the production of rice may be hampered. So, the prices of paddy and rice should be balanced by considering all aspects, he opined.