NEWS report in a national daily said prices of rice has soared by more than 20 percent or Tk 6 to 8 per kg in September to shock buyers at all levels. What puzzles many is the fact that when the government is offering rice at Tk 10 per kg to selected poor essentially on political consideration, how others have been left to buy rice at an exorbitant price between Tk 40 and 50 per kg in a highly monopolistic rice market. The entire nation is now hostage to unruly rice traders’ syndicate.
In fact rice prices started to soar ahead of Eid-ul-Azha adding to sufferings of the people. Many in the retailers market want to justify the rise at this time saying it is a lean period and one has to wait for arrival of Aman rice to market for more than one month. Rice price goes up at this time. But others say a nexus of powerful traders and local politicians often create the situation. In our view Boro is just over and there is enough stock in the government silos and in the hands of private millers and dealers. There is no justification of the price hike at this moment.
We believe the dealers and hoarders are spreading the hoax of the supply shortfall to clear their stocks and make windfall profit before next Aman season. The price of rice increased in the city’s wholesale and retail market in last one month virtually without any valid reason. We suspect with full justification that syndicate of dishonest millers, some of them are also ruling party MPs and retailers are making the mischief to fulfil their greed for unending profit.
In fact rice prices started to soar ahead of Eid-ul-Azha adding to sufferings of the people. Many in the retailers market want to justify the rise at this time saying it is a lean period and one has to wait for arrival of Aman rice to market for more than one month. Rice price goes up at this time. But others say a nexus of powerful traders and local politicians often create the situation. In our view Boro is just over and there is enough stock in the government silos and in the hands of private millers and dealers. There is no justification of the price hike at this moment.
We believe the dealers and hoarders are spreading the hoax of the supply shortfall to clear their stocks and make windfall profit before next Aman season. The price of rice increased in the city’s wholesale and retail market in last one month virtually without any valid reason. We suspect with full justification that syndicate of dishonest millers, some of them are also ruling party MPs and retailers are making the mischief to fulfil their greed for unending profit.
Bangladesh now produces excess rice often exporting it to create space for stocks in government godowns. Rice import by some trading houses also continues from India, albeit at a lower scale since the government has increased import duty to discourage supply that glut our local market. There is no scope of supply scarcity and yet it is hurting the people.
The volatility in rice market is comparable to price escalation in kitchen market for items like salt, sugar and lentils. Traders’ Syndicates are rotating their unholy practice taking one item after another.
What is surprising is the total absence of the government monitoring over the market. This happens because the government’s success is decided by its own followers and not the people.
