Rice prices on the rise again

Once again, the rice market has become volatile, with prices of all rice variants having increased in the retail market by an average of Tk5 per kg.

Traders and mill owners indicated that the closure of many husk mills and the high prices of paddy amid the coronavirus pandemic are behind this rice price hike.

The government is going to start selling open market rice (OMS) in city corporations and at district-levels across the country from December 20 as the price of rice continues to rise even during the monsoon season.

The decision was taken at a virtual meeting of the food deputy commissioners with Food Minister Sadhan Chandra Majumder on Monday.

The minister told Business Insider that rice prices are rising abnormally during the monsoon season.

“Amid the pandemic, a few rogue rice traders in the country are capitalising on this opportunity. We will take stern action against them,” he added.

At this meeting, the participants decided that no mill can store more than three times its own production capacity of rice or paddy. If any more stock is found, it will be considered as rice of the government.

Previously, more than five times the production capacity of rice could be stored in mills.

Upon visiting the capital's Karwan Bazar and the Mohammadpur Krishi Market on Tuesday, the Business Insider found that all kinds of thin rice are being sold at Tk55 to Tk60, which was Tk50 to Tk55 before.

Medium thin rice is being sold at Tk60 to Tk65, which was Tk55 to Tk60 last week. And coarse rice is being sold at Tk50 to Tk55, which was sold a week ago at Tk47 to Tk50.

A market monitoring report prepared by the Bangladesh Trading Corporation (TCB) last week also raised the issue of rising rice prices. According to the report, prices of Miniket and Nazirshail rice rose by 5.36%. Prices of medium Paijams and Lata rice have risen by 9.7%. The price of coarse rice has risen by 1.1%.

Mohammad Alam, owner of Alam Rice Mill in Naogaon, said that thin rice is now being sold at Tk48 to Tk52 per kg. Medium quality thin rice is being sold at Tk42 to Tk45.

Regarding the rice price hike, he said many husk mills have closed during the pandemic. Besides, the price of paddy has also gone up. That is why the prices are increasing.

Md Mehedi Hasan, who came from Motijheel to buy rice at Karwan Bazar, said that many people have lost their salaries and lost their jobs due to the coronavirus. The price of rice is increasing.

“If this retail price trend continues like this, what will the common people eat?” he asked.

He added that the government should be stricter in controlling the market. “It is not possible to buy everyday goods from TCB trucks,” he added.

Md Hannan, a rice seller of M/S Barishal Rice Agency in Karwan Bazar, said the prices of all types of rice have gone up. Asked why the price had gone up, he said mill owners may be stockpiling rice and selling it at higher prices.

“So, we are also selling at higher prices.”

When asked about the reason for the rise in rice prices, Naogaon-based rice trader Mintu Mia said that rice mill owners are stockpiling rice and selling it at Tk200 to Tk250 per 50kg sack.

He said that when 400 sacks of rice were ordered, only 200 sacks were provided, resulting in a shortage, and hence, the price hike.