Rice mills of Kushita’s Khajanagar, the second largest rice-producing hub of the country, have halted due to shortage of paddy stock.
Taking advantage of this situation, the price of miniket rice continues to rise in the retail market.
The rice milled in Khajanagar, is supplied to capital Dhaka and other districts across the country.
During a recent visit to several auto rice mills and markets in Khajanagar, this UNB correspondent found that many mills have stopped producing miniket rice, citing the unavailability of stock.
However, rice sold under these companies' brands is still found in retail markets, though at skyrocketing prices.
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At the mill gate, miniket variety is being sold at Tk 80-81 per kg, while retail prices are even higher.
Talking to locals this correspondent came to know that there is an artificial shortage of paddy in the market but many millers still have significant stockpiles.
They are securing extra profits by strategically producing rice but the administration is showing that there is no paddy while the officials concerned of the administration are struggling a lot to find the loopholes of the millers during the operation.
When asked about the continuous rise in rice prices, Zainal Abedin Pradhan, general secretary of the Bangladesh Auto Major & Husking Mill Owners’ Association, said, “Miniket paddy is nearly unavailable in the market. Traders are collecting small amounts of rice from northern and southern regions at a cost of Tk 2,250 per maund, forcing the authorities to sell it at a high price.
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As a result, 50% of mill owners in Khajanagar have halted production while many are considering shutting down their businesses, he said.
Arshad Ali, an owner of Dada Rice Mill in Khajanagar, said there is no possibility to see any immediate relief from rising rice prices.
“It will take another month and a half for new miniket variety to be harvested. Until then, there is no chance of prices decreasing,” he said.
He also pointed out that after last year’s devastating floods, they had advised the government to allow rice imports but the authorities’ actions remain unclear.
“Besides, the statistics provided by the agricultural department on paddy production need to be reassessed,” he added.
During Ramadan, rice prices have already increased multiple times. At the beginning of the season, rice was sold at Tk 62-64 per kg but it has now reached Tk 80-81.
In Kushtia’s retail markets, miniket rice is being sold at Tk 85-86 per kg, Kajolata at Tk 76 per kg and coarse Athash rice at Tk 60 per kg.
Over the past week, the price of all rice varieties in Kushtia has risen by Tk 3-5 per kg, with Miniket experiencing the highest increase—Tk 5 per kg.
Amid the soaring rice prices, Kushtia Sadar Upazila Nirbahi Officer (UNO) Partha Pratim Sheel conducted a drive at Khajanagar rice market on Monday.
During the drive, they fined two rice mills for hoarding paddy beyond permissible limits and underweight packaging.
Officials from the Agricultural Marketing Department and the Directorate of Consumer Rights and Protection also were present there.
Following an inspection at Palash Rice Mill, UNO Partha Pratim said, “This mill has stockpiled more than its licensed limit. We have ordered them to dispose of the excess within three days and imposed a cautionary fine.”
He further said that other mills were found lacking production dates and net weight labels on their rice bags.
Legal notices and warnings were issued accordingly, he said.
He also assured that such raids will continue to prevent price hikes and market manipulation.