Rice prices have increased again in the milling hubs of Naogaon, Rangpur, Dinajpur and Nilphamari by a minimal Tk 1.5-2.0 a kg over the last three days.
However, this hike in wholesale prices has not impacted city retail markets yet, as coarse rice remains at its previous highs of Tk 52-55 a kg, medium-quality rice at Tk 64-66 and finer varieties at Tk 72-82, according to kitchen market sources.
In Dinajpur and Nilphamari, the two major milling hubs, hybrid rice from Boro season is being sold at Tk 43-44 a kg.
Medium-quality BRRI Dhan-28 and Paijam are priced at Tk 54-55, while finer rice like Jeerashail or Miniket is selling at Tk 60-64, depending on quality, reflecting a Tk 1.5 hike per kg (Tk 75 per 50-kg sack) during this period.
Rice prices have also risen by Tk 2.0 a kg in Chapainawabganj, Rajshahi, Naogaon and Joypurhat.
At Naogaon mill gates, good-quality Jeerashail or Miniket rice is now being sold at Tk 66-67 a kg.
Traders have attributed this price hike mainly to ongoing rainfall across regions, thereby disrupting the supply of rice paddy to mainstream markets.
As a result, rice paddy prices have further increased by Tk 60-100 per maund in local markets (mokams), according to Shamsul Alam, a rice mill owner in Nilphamari.
He said many traders were holding substantial quantities of paddy in stock.
According to Mr Alam, the BRRI Dhan-28 paddy variety is currently being traded at Tk 1,450-1,500 a maund (40 kg), while hybrid paddy is being priced at Tk 1,150-1,200.
Jahirul Alam Shah, a rice trader at Pakerhat in Dinajpur, told the FE that driving rain in some areas has disrupted milling operations at husking mills, contributing to the price hike following a rising trend in paddy prices.
Farm economist Prof Golam Hafiz Kennedy said it was high time for the government to take serious action to regulate the rice market, as he warned that prices could spiral out of control without strict monitoring.
He also suggested easing rice imports by removing all kinds of duties, especially in light of the recent heavy flooding that damaged crops across 0.45 million hectares of land.
While Bangladesh produced a record 40.6-million tonnes of rice in fiscal year 2024, Prof Kennedy advised halting any rice exports temporarily due to a potential drop in production caused by floods.
He told the FE that rice prices have already increased by Tk 6.0-8.0 per kg at retail level since July this year.
Any further hike must be curbed to protect consumers who are already struggling with record-high prices of eggs and vegetables, said the economist.
Against this backdrop, food ministry has recently requested the revenue board to reduce rice import duty to 5.0 per cent from existing 62.5 per cent.
However, the NBR is yet to work on it.
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