Increasing price of rice to push up market index

THE prices of all varieties of rice and other essential kitchen items are soaring amidst the flash floods in the greater Sylhet region. The prices of all varieties of coarse and aroma rice increased by Tk 4 to Tk 10 per kg while the price of vegetables showed an upward trend at the end of the week on Friday, said a report of The New Nation. As haor areas in the northern Sylhet account for nearly 10 percent of the total cultivation area of about 4.8 million hectares this year and the flooding has adversely affected about 140,000 hectares land, the supply of rice and vegetables in the kitchen market is becoming severely hampered. Due to the unexpected flash floods in the harvest season, the millers could not keep adequate stocks and the old stock is running out quickly which has an upward pressure on the price in the capital and districts’ rice markets. As the heavy rainfall influenced by the N’wester suspended the supply of vegetables from nearby districts and destroyed the stock of old vegetables, the prices of the vegetables and other essential items have increased rapidly.

Although farmers in the north have sustained losses, by Department of Agriculture Extension (DAE) estimates, the loss of paddy is minuscule in terms of total paddy production. Then why are we seeing such a sharp increase in price? The shortage may be the outcome of hoarding and price manipulation since only a fraction of mills has enough paddy stock to be turned into rice. Whatever may be the case, it is imperative that the government take steps to stabilize the price of this essential commodity. If there is indeed any hoarding going on, authorities must act swiftly against these parties. There may be a need to reduce the import duty on rice in the short term to compensate for any crunch in supply.

As the floods affected the rice and vegetables supply in a negligible manner the increase of edible oil, fish, meat and spice prices can’t be accepted. As per several dailies, excusing the torrential rainfall, the traders have hiked the prices of essential commodities though Ramadan and the budget announcement is still one month away. Obviously, those who are responsible for such irrational increases in basic food stuff do not care about either the natural forces of demand and supply or the directives of the government. If the importers and producers are at fault they must be held accountable. If it is the wholesalers and retailers who are colluding to spike up the prices, they too have to be penalised.

Whatever the factors are, the government must get to the bottom of it and stop this illogical, artificial, hike in prices. Besides, the Consumers Association of Bangladesh should start drives to ensure the prices of essential commodities remain stable until the upcoming Eid festival.