Rice is not just the staple food in Bangladesh, it is at the heart of overall life – culture, politics, and economy. 

The price of the grain remains a sensitive issue for everyone – producers, consumers and policymakers. It affects poor consumers who have the major proportion of calories from rice. For producers, rice cultivation often accounts for a large share of annual household income. 

Rice consumption in Bangladesh is growing every year. It was 36.3 million metric tonnes in 2016 and is expected to reach 39.7 million metric tonnes within a few years, according to Mordor Intelligence.

Despite government interventions, stable production and almost insulated domestic market, consumers and farmers are suffering from the soaring price of rice.

The debate goes on – for years and years, consumers are paying more, but the farmers are being underpaid. And queues of people behind mobile trucks and stores for subsidised rice are getting longer.

Retailers said the prices of the staple increased on the wholesale market and wholesalers pinned the blame on the supply crunch.

Most of the market actors believe that large millers play the most influential role in the supply chain. They can temporarily slow down the production process, causing a spike in price.

Also, natural disasters and unexpected price shocks often create upheaval to destabilise the market for a short period.

Seasonality causes regular price variability, too.

However, in a competitive and efficient market, retail and wholesale prices should move together, and the gap between retail and wholesale prices needs to remain largely constant over time.

Bangladesh, traditionally the world's third-biggest rice producer, recently emerged as a big importer of grain due to depleted stocks and high local prices after repeated flooding ravaged its crop.

The country produces around 35 million tonnes of rice annually but needs almost all its production to feed its population of more than 160 million. 

Boro and Aman varieties constitute 91 percent of rice production in Bangladesh.

Different varieties of paddies are available in the markets. However, the final products are available in three types – fine, medium, and coarse – due to processing. Coarse rice dominates the menu of almost all low and lower-middle-income families.

Meanwhile, the scientists at the Bangladesh Rice Research Institute have found that there are no parboiled varieties of rice like Miniket and Nazirshail. Most rice varieties look similarly white once they are milled to remove the bran and germ.

Rice can be polished to a maximum of 10 percent, but rice is being polished as much as 30 percent and is being released in the market as Miniket and Nazirshail.

"There is no rice called Miniket or Nazirshail. Mostly, the fine rice is converted from two types of rice – Zirashail and Shampa Katari. The retailers are selling both BR28 and BR29 as Miniket," Food Minister Sadhan Chandra Majumder said.

The government is formulating a policy to make it mandatory for businesses to mention the varieties of rice on their bags for marketing, according to the food ministry.

Experts say rice must not be husked beyond seven to 10 percent. If done, rice loses its protein and other mineral contents, posing risk to public health due to trimming or polishing.

Meanwhile, according to the Trading Corporation of Bangladesh (TCB), fine rice – Nazirshail and Miniket – was selling at Tk60-70 per kg Friday, up from Tk58-68 a week ago.

Medium quality rice was selling for Tk50-58 and coarse rice varieties, such as Swarna, at Tk45-50 per kg.

Prices of fine quality rice varieties increased 3.17 percent, medium 3.85 percent, and coarse 2.15 percent per kg in the last month, shows the TCB data.

Meanwhile, the Department of Agriculture Marketing data shows that the fine quality Aman rice was selling at Tk62-Tk65, medium quality at Tk48-50, and coarse at Tk42- 44 per kg Friday.

Summer-sown rice crop, locally known as Boro, contributes to more than half of Bangladesh's typical annual rice output.

The fine quality of Boro rice was selling at Tk60-63, medium quality at Tk50-53, and coarse at Tk43-45 per kg.