Anisul Islam Noor :
Rice prices are soaring across the country, although Boro crops harvesting has begun.
Usually, the prices fall after the start of harvesting period but this year the situation has turned reverse.
Experts attribute such a surge in the rice prices to higher import duty, drop in production and syndication of a section of traders.
The government’s decision to procure an all-time high volume of food grains has also put an impact on the paddy market, they said.
Newly harvested Brridhan-28 variety was selling on Monday
at Tk 1,010-Tk 1,020 per maund (40 kilograms) in parts of Dinajpur, Rangpur, Bogra, Kushtia, Rajshahi and Mymensingh regions, according to the local market sources.
The Jeerashail variety of paddy, widely consumed as Miniket, was selling at Tk 1,070-1,080 per maund in Bogra and Dinajpur. It is 5-11 per cent higher than the government-fixed purchase price of Tk 960 per maund (Tk 24 a kg). Azharul Islam, Proprietor of Sarker Rice Mill in Bogra, told this reporter that they were yet to start milling Brridhan-28 due to rain and less supply of the crop.
Milling of Miniket had started earlier and the new rice was being traded at Tk 47.5-Tk 48 a kg in the last one week, he said. “The season began with selling it at Tk 42 a kg last year.”
The coarse rice was selling at Tk 40-Tk 43, medium quality at Tk 45-Tk 48 and finer variety at Tk 54-Tk 62 a kg in Dhaka for the last three weeks, according to key city kitchen markets.
The price is 25 per cent higher than it was a year ago, TCB data showed. Md Abdur Rashid, President of Bangladesh Auto, Major and Husking Mills Association, said the government has taken a decision to procure 1.5 million tonnes of paddy and rice.
“It will purchase the highest-ever amount of paddy which is impacting the market,” he pointed out.
Towfiqul Islam Khan, research fellow of think-tank Centre for Policy Dialogue (CPD), said three factors are now influencing rice prices, such as fundamental laws of supply and demand, higher import duty and fear about a plunge in production.
He said the government has a stock of only 0.35 million tonnes of rice which is the lowest comparing to those of the last few years.
Islam also pointed out that traders fear local production might fall due to flash flood causing damage to more than 70 per cent crops in the haor region. He said the government should take into account the domestic supply and demand and review (if needed) the existing 25 per cent custom duty on rice import after completion of Boro harvest.
The prices of some local varieties of rice are now 27-29 per cent higher than those in West Bengal in India, he added.
During a visit to Babubazar, Karwan Bazar rice wholesale markets, it is found that prices of some key varieties of rice increased slightly.
Basir Uddin Sarder, Proprietor of Brothers Rice Agency at Babubazar wholesale, said the prices of Miniket, Brridhan-28, Paijam and Swarna varieties increased by Tk 0.5- 0.75 a kg in the last one and a half weeks.
The millers are yet to hint at any fall in its prices in the next few days. Consumers, Association of Bangladesh (CAB) Secretary Humayun Kabir Bhuiyan said limited-income people are bearing the brunt of high prices of rice and other essentials.
He said a syndication of big millers and importers might have a role in the rice price hike. The government should gear up its monitoring further to prevent any artificial shortage of rice, he suggested.
According to the Department of Agriculture Extension (DAE), the country has set a target to produce 34.98 million tonnes of rice, including 19.1 million tonnes of Boro, this Fiscal Year (FY’17).
About 8 per cent of Boro harvest has completed by April 20 while it will continue till mid-July.
However, the Food Ministry data showed that private importers have so far brought in 84,500 tonnes of rice in the current fiscal year.
The government has now a stock of only 0.359 million tonnes of rice which was 0.803 million tonnes during the corresponding period a year earlier. Bangladesh produced over 34.57 million tonnes of rice in the FY’16, according to Bangladesh Bureau of Statistics.
Rice prices are soaring across the country, although Boro crops harvesting has begun.
Usually, the prices fall after the start of harvesting period but this year the situation has turned reverse.
Experts attribute such a surge in the rice prices to higher import duty, drop in production and syndication of a section of traders.
The government’s decision to procure an all-time high volume of food grains has also put an impact on the paddy market, they said.
Newly harvested Brridhan-28 variety was selling on Monday
at Tk 1,010-Tk 1,020 per maund (40 kilograms) in parts of Dinajpur, Rangpur, Bogra, Kushtia, Rajshahi and Mymensingh regions, according to the local market sources.
The Jeerashail variety of paddy, widely consumed as Miniket, was selling at Tk 1,070-1,080 per maund in Bogra and Dinajpur. It is 5-11 per cent higher than the government-fixed purchase price of Tk 960 per maund (Tk 24 a kg). Azharul Islam, Proprietor of Sarker Rice Mill in Bogra, told this reporter that they were yet to start milling Brridhan-28 due to rain and less supply of the crop.
Milling of Miniket had started earlier and the new rice was being traded at Tk 47.5-Tk 48 a kg in the last one week, he said. “The season began with selling it at Tk 42 a kg last year.”
The coarse rice was selling at Tk 40-Tk 43, medium quality at Tk 45-Tk 48 and finer variety at Tk 54-Tk 62 a kg in Dhaka for the last three weeks, according to key city kitchen markets.
The price is 25 per cent higher than it was a year ago, TCB data showed. Md Abdur Rashid, President of Bangladesh Auto, Major and Husking Mills Association, said the government has taken a decision to procure 1.5 million tonnes of paddy and rice.
“It will purchase the highest-ever amount of paddy which is impacting the market,” he pointed out.
Towfiqul Islam Khan, research fellow of think-tank Centre for Policy Dialogue (CPD), said three factors are now influencing rice prices, such as fundamental laws of supply and demand, higher import duty and fear about a plunge in production.
He said the government has a stock of only 0.35 million tonnes of rice which is the lowest comparing to those of the last few years.
Islam also pointed out that traders fear local production might fall due to flash flood causing damage to more than 70 per cent crops in the haor region. He said the government should take into account the domestic supply and demand and review (if needed) the existing 25 per cent custom duty on rice import after completion of Boro harvest.
The prices of some local varieties of rice are now 27-29 per cent higher than those in West Bengal in India, he added.
During a visit to Babubazar, Karwan Bazar rice wholesale markets, it is found that prices of some key varieties of rice increased slightly.
Basir Uddin Sarder, Proprietor of Brothers Rice Agency at Babubazar wholesale, said the prices of Miniket, Brridhan-28, Paijam and Swarna varieties increased by Tk 0.5- 0.75 a kg in the last one and a half weeks.
The millers are yet to hint at any fall in its prices in the next few days. Consumers, Association of Bangladesh (CAB) Secretary Humayun Kabir Bhuiyan said limited-income people are bearing the brunt of high prices of rice and other essentials.
He said a syndication of big millers and importers might have a role in the rice price hike. The government should gear up its monitoring further to prevent any artificial shortage of rice, he suggested.
According to the Department of Agriculture Extension (DAE), the country has set a target to produce 34.98 million tonnes of rice, including 19.1 million tonnes of Boro, this Fiscal Year (FY’17).
About 8 per cent of Boro harvest has completed by April 20 while it will continue till mid-July.
However, the Food Ministry data showed that private importers have so far brought in 84,500 tonnes of rice in the current fiscal year.
The government has now a stock of only 0.359 million tonnes of rice which was 0.803 million tonnes during the corresponding period a year earlier. Bangladesh produced over 34.57 million tonnes of rice in the FY’16, according to Bangladesh Bureau of Statistics.
