Rice prices remain volatile across mills, wholesale and retail levels, despite a record-breaking rice production in the country following the completion of the Aman paddy harvest.
Over the past few weeks, rice prices have surged by Tk 5 to 10 per kilogramme, raising concerns among consumers and experts alike.
Market insiders attribute the price hike to corporate profiteering.
“Corporate groups purchased paddy from farmers at lower rates and are now pushing up rice prices at the mill level to secure multifold profits,” said Alauddin Zoarder, owner of Sonali Rice Agency in Kushtia.
He said that these groups invested heavily early in the season and are now manipulating the market.
Record Aman Production Fails to Stabilise Market
The Department of Agricultural Extension (DAE) targeted a production of 1.72 crore tonnes of rice during the Aman season, cultivating 58.74 lakh hectares of land. By the first week of January, 97.5% of the crop had been harvested, yielding approximately 1.71 crore tonnes, with an average yield of 2.98 tonnes per hectare.
But discrepancies in production figures have emerged. While the DAE estimates a record production of 1.74 crore tonnes this season, a recent report by the US Department of Agriculture (USDA) predicts only 1.39 crore tonnes.
These conflicting figures raise questions about the actual supply available in the market.
Rising Prices Across All Tiers
A market survey reveals that premium quality rice, such as Miniket and Nazirshail, is being sold at Tk 80-90 per kg, compared to Tk 78-85 per kg last week.
Other varieties, including Swarna and Pajam, have also experienced price hikes, with Swarna priced at Tk 54-55 per kg and Pajam at Tk 73-74 per kg.
Consignment of 2,450 metric tonnes of Indian rice arrives at Darshana Port
According to the Trading Corporation of Bangladesh (TCB), the current price of fine-quality rice ranges from Tk 70 to Tk 84 per kg, marking a 4.05% increase over the past month and a 14.07% rise compared to the same period last year.
Experts Call for Better Oversight
Dr Fahmida Khatun, economist and executive director of the Centre for Policy Dialogue (CPD), highlighted the need for accurate data on production and demand.
“There is a significant discrepancy in production figures. If traders sense a supply crisis, they hoard stock or increase prices,” she explained.
Dr Khatun emphasised the importance of strengthening government stockpiles to prevent undue price manipulation.
“When rice prices rise, the impact on the public is profound,” she added.
Traders’ Perspective
Md Lokman Hossain, general secretary of the Karwan Bazar Rice Traders Association, said the price of rice has increased by Tk 200-300 per 50 kg sack in recent days.
“Usually, prices rise before the Boro season, but this time it’s happening during peak Aman season due to mill-level price hikes,” he remarked.
Similarly, AKM Khorshed Alam Khan, president of the Bangladesh Auto Rice Mill Owners Association, pointed to a lack of government oversight.
“In 2018, during the election, rice prices also surged by Tk 5 per kg. A single announcement by business leaders reduced it by Tk 2 per kg, which shows the market is being controlled,” he said.
Experts and market observers agree that enhanced government monitoring and interventions are crucial to stabilising rice prices and ensuring affordability for the nation’s consumers.