Vibrant paddy market starts impacting Dhaka's rice retails during this peak Aman- harvesting season as coarse-variety price hit as high as Tk 56 a kilogram, in tandem with general price rises.
Latest findings from city groceries and kitchen markets in the past week showed such unlike price upturn, as intermediaries were found active to make hay out of the ongoing market waywardness.
Most of coarse varieties sold at Tk 54-56 a kg, medium Tk 64-65 and non-branded finer at Tk 78-92 a kg---a Tk 3.0-5.0-a-kg hike in seven days, according to groceries and kitchen markets.
Branded finer rice of BRAC (Aarong), Pran, ACI, Square, City Group and others were selling at previous highs of Tk 84-98 a kilogram.
Prices of edible oils, flour-made bakery items, veggies also showed a hike in a week, pinching hurt the poor and lower-middle-class people already in a shock of high inflationary pressure.
Poultry meat and egg, and few other protein items showed a slight decline amid low presence of customers, said traders.
Hamidur Rahman, proprietor of Ilham Store, a grocery at Sherebangla Road in Mohammadpur, told the FE correspondent that Guti-Swarna rice of Aman season arrived in the Mohammadpur Agricultural Market and was selling at Tk 2500 a 50- kg sack or Tk 50 a kg at the wholesales.
He said coarse rice from Boro season was out of market which was wholesaled at Tk 45-46 a kg two weeks back.
Proprietor of MB Traders at Mohammadpur Agri Market Md Monir Hussain said a little volume of Guti-Swarna had entered the market two days earlier from Dinajpur but cost was much higher considering any harvesting season---Tk 48.75-Tk 49 a kg.
Medium-quality Swarna-5, finer varieties BRRI dhan 34, Shampa Katari (sold as Najirshail) were yet to come to the market, he said.
"Boro season's finer rice like Jeera or Miniket was being supplied by millers at Tk 66-70 a kg, depending on quality, and we are selling it to retailers at Tk 67-71 a kg," he added.
"Supply of BRRI dhan 28 from Boro season has declined notably, creating a supply shortage of medium-quality rice," he said.
Md Azizul Haque, a Nilphamari-based miller, told the FE that paddy season started with Tk 29-30 a kg (Tk 1150-1200 a maund or 40 kg) in the first week of November, which increased to Tk 32-33 a kg.
"We are supplying Guti-Swarna rice now at Tk 49 a kg which would be Tk 54-55 following the current rate of paddy," he said.
He said area of paddy has been expanded but average yield has declined for many factors, resulting in higher prices.
He also recognised that millers in the area were now on the prowl to take hold of the paddy market by flooding money.
"We need paddy in large volumes for our market operation for next few months," he says.
Dr Kazi Tamim Rahman, who teaches agricultural economics at Bangabandhu Sheikh Mujib Rahman Agricultural University, said the government procurement target of 0.8 million tonnes of rice and paddy should be fulfilled even if it should have to raise the asking rate.
"Besides, the government should also bring 1.0 million tonnes of rice from abroad as per its target," he says about a contingency measure in view of global alarm being rung about food-supply problems.
Bangladesh Bureau of Statistics (BBS) should release rice-production data of Aman season immediately after completion of harvest.
It could also deliver an output forecast after end of at least 25 per cent of harvest which could give policymakers room to take measure in advance, if needed, he suggests.
"But reality is that the organisation is yet to publish the data of last Boro season when Aman harvest has already begun," he says.
Consumers Association of Bangladesh (CAB) vice-president SM Nazer Hossain says the government's dillydallying in making import easier has brought a devastation for the consumers.
"When a US dollar purchase rate has surpassed Tk 110 and global rice prices have increased 6.0-8.0 per cent compared to a year back, there is still above 15-percent import duty on rice," he adds.
He says the private sector could import only 0.22 million tonnes when they were permitted to bring 1.4 million tonnes, which put no impact in the market.
He urges the government to make it zero tariff to bring rice from anywhere in the world for a certain period of time.
He also feels that safety-net programme like providing rice at subsidised rate should be expanded vastly by making at least a 2.5 million tonnes of food stock.
"Market monitoring should also be stricter across the country to prevent any artificial price hike."
Though market-insiders are skeptical, the agriculture ministry is expecting 16.3 million tonnes of rice output from 5.9 million hectares of land in the ongoing Aman harvest. Harvest had been completed at 23 per cent till November 17.
Aman season comprises 38 per cent to the overall supply of rice.
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