Retail prices of rice have increased substantially by Tk 2.0-3.0 a kg in the last couple of days, allegedly due to millers' strong hold on the market.
Market experts also attributed the price hike to less-than-required government stocks and concerns over flood-induced production shortfall this year, stressing the need for strict market monitoring and encouraging increased imports to take back control over the staple market.
The price has been increasing at a time when the Aman harvest is at its last stage.
The country harvested 16.7 million tonnes of Aman this season, an all-time high, as compared to the season's output target of 17.6 million tonnes, official estimates suggest.
According to market sources, coarse rice hit Tk 57-60 a kg on Saturday, while medium Tk 68-70 and finer variety Tk 75-90.
Abdul Kaiser, a grocer at Sultanganj in Rayerbazar area, told the FE that prices increased at the wholesale level by Tk 100-150 per 50-kg sack in the last one week. The retail prices started increasing substantially from Friday.
He said the rice prices had been increasing slowly since November last despite the Aman harvest start by then.
"BRRI dhan 28 rice price shot up to Tk 67.5 a kg at wholesale and we are retailing the same at Tk 70 a kg," he said.
Arifur Rahman, a trader at Malibagh DIT Road in the city, said millers are supplying seasonal hybrids, guti swarna, at Tk 2,750 a sack and BRRI dhan 28 is being supplied at Tk 3,320-3,350 a sack.
He said the prices of finer varieties of rice like najirshail, miniket, and jeerashail also increased by Tk 1.25-1.50 a kg in the last seven days.
HR Khan Pathan, secretary of Bangladesh Auto-Major and Husking Mill Owners Association, said the flooding in July-August period raised concern for millers and traders as the government forecasted a lower production for this year.
He said the paddy season this year began with Tk 1250-1300 a maund which is Tk 150-200 higher than a year ago. The current price of guti swarna paddy is over Tk 1500 a maund.
Value chain expert Prof Dr Rashidul Hasan told the FE that though the production plunged in a dozen of districts, the production increased in the rest of the regions during this Aman season thanks to necessary rains last season.
The flood-induced concerns as well as the millers' tendency to fetch more profits have made the market volatile, he said.
He, however, pointed out that the harvest in Boro and Aus seasons, from May to August last, is nearly 23 million tonnes. So, he added, the gradual increase in prices since the beginning of the Aman harvest is not normal.
Millers in Naogaon, Dinajpur, Rangpur, Jashore and other hubs should be brought under strict monitoring, he suggested.
He said the government's rice stock has declined to below 0.8 million tonnes which should be taken into consideration, stressing the need for achieving the ongoing Aman procurement target of 0.7 million tonnes.
The government's stock should be increased to its maximum level and the private sector should be encouraged to import rice from diverse markets at zero duty, he added.
[email protected]
