Rice prices surge amid ample supply
Staff Reporter :
Both wholesale and retail prices of rice in the markets have experienced an upward spike, leaving consumers and traders bewildered.
Last week, the popular Miniket rice, priced at Tk 65, has abruptly surged to Tk 70 this week, stoking concerns among both consumers and traders.
Apart from the rice price surge, the prices of vegetables and other essential items are also on the rise despite being the peak season of winter vegetables.
The dollar crisis and the food inflation have badly affected the consumers, especially the ordinary people and the fixed income group of population. Life is being hardened every day for the large segment of the population.
Even banking sources said that many of their clients are withdrawing their savings to survive in these hard days of economic slowdown.
Meanwhile, wholesale traders, baffled by the sudden price escalation, point to the unprecedented record production of Aman rice in the recently concluded year. Country’s 40 percent of rice production springs from the Aman season.
According to reports from the Ministry of Agriculture and Food, the target production for the last Aman season was an impressive 1 crore 71 lakh 78 thousand tonnes, based on a cultivation area of 58 lakh 74 thousand hectares.
According to Department of Agriculture Extension (DAE), so far 57.27 lakh hectares of land have been harvested and resulted in a production of 1 crore 70 lakh 93 thousand tonnes of rice.
The average yield is 98 tonnes per hectare. Due to various reasons, 40,000 hectares of rice fields have been damaged, DAE said.
Despite the apparent abundance in rice supply, traders are quick to lay blame on a suspected syndicate, accusing them of artificially inflating prices.
A visit to Mahakhali Kachabazar on Saturday unveiled alarming figures – Miniket rice selling at Tk 70, BRRI-dhan-28 at Tk 55, Nazirshail fluctuating between Tk 75 to Tk 80, coarse rice at Tk 50, and Polao rice commanding prices ranging from Tk 130 to Tk 135. Furthermore, the cost per sack for all rice varieties has surged from Tk 250 to Tk 300.
Sources suggest that millers may be contributing to the problem by selling rice at higher prices, which then trickles down to affect wholesale rates, creating a ripple effect in the rice market.
Some even speculate that the looming impact of upcoming elections could be a contributing factor.
Shakil Ahmed, proprietor of Yeasin Traders said, “There is no crisis of rice in the
market.
The supply chain is also alright, yet the prices have been surged. There is no possibility of decreasing price in the next two to three months.”
Despite the government’s efforts to maintain stability in the market, rice traders argue that their pursuit of additional profit margins is driving them to increase prices.
Abdul Kuddus, proprietor of Selim Rice Bhandar, said, “The prices of rice has spiked due to the syndicate’s manipulation.
The millers try to show various reasons, but they have increased the price willingly. We have nothing to do. The syndicate will continue until the government intervenes.”
In response, the government has initiated various programmes, distributing rice at subsidised rates to citizens with low incomes.
The Trading Corporation of Bangladesh (TCB) has collaborated with different initiatives to achieve this objective, with rice being distributed by the government at prices lower than usual.
In the current fiscal year, the government has refrained from importing rice from abroad. However, in the FY 2022-23, around 10.56 lakh tonnes of rice was imported.
The prices of coarse and medium-sized rice increased to some extent, but it decreased by December. The prices have again started increasing. According to the Food Ministry, approximately 14 lakh tonnes of rice are now in the stockpile.
The Ministry of Food assures the public that measures are being taken to monitor the situation closely, and they remain committed to ensuring a stable and affordable rice market for consumers.