Rice prices up ahead of procurement drive

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FE Report
Rice prices, especially coarse varieties, have marked a considerable increase in the market following the announcement of the government's procurement prices, raising hopes for the local Boro farmers about getting returns on their investment and labour.
But a section of rice millers, traders and middlemen have already started cashing in on the higher official rates ahead of the procurement drive, scheduled to kickoff today (Friday), market sources said.
A visit to some city markets revealed that prices of coarse rice, which is normally collected by the government, have gone up by around Tk 2.0 per kg both at the wholesale and retail levels after the government announced its 1.2 million tonnes rice procurement drive last Sunday.
Prices of other finer variety of rice have registered a slightly upward trend in the city markets also, trading sources told the FE.
Under its domestic food-grain collection drive, the government has fixed the price of boiled rice at Tk 22 per kg and the rate of non-boiled (atap) rice has been set at Tk 21 per kg for the current Boro season.
Besides, it has also fixed the price Boro paddy at Tk 14 per kg.
The government fixed its Boro procurement prices of both rice and paddy at significantly higher than that of the open market prices so that the farmers'do not losses against the backdrop of falling prices of the food-grain
"Prices of most of the rice varieties have been on the rise in the markets since the government announced its procurement drive last Sunday," said Md. Masum of Comilla Rice Agency at the city's Chowdhurypara area.
Different kinds of coarse rice are now selling between at Tk 2050 and Tk 2100 per quintal (37.5 kg) while the items were being sold at Tk 1900 to Tk 1950 per quintal before the official announcement, he said.
Mr Masum said other finer varieties of rice are also showing an upward trend by Tk 100 to Tk 150 per quintal at the wholesale levels.
The retail prices of coarse rice have increased by about Tk 2.0 per kg and selling between Tk 23 and Tk 24 per kg, a rice trader at the city's Malibag Bazar said.
A trader of the city's Mitu Rice Agency, Md Ripon, informed this correspondent that most of the rice millers in the country's northern areas namely Rangpur, Dinajpur and Bogra are reluctant to supply rice to the agencies now hoping to get better prices later on.
"Rice millers have already informed us that they want to see the impact of the government's procurement drive on the local rice market," said Mr Ripon.
Citing the growers' level information, the trader said farmers are also showing a 'wait and see' policy as to whether the launch of the government's food-grain purchase would help increase their crop prices.
Welcoming the official procurement prices, the Manager of Tahura Automatic Rice Mills in Dinajpur, Md. Yunus, told the FE over telephone that rice prices had gone up by Tk 60/Tk 70 per maund there following the official announcement of the grain prices.
He also suggested that the government should ensure proper implementation of its current Boro purchase drive for the greater interest of the local farmers.
"The farmers will get little financial benefit unless the government's food-grain purchase drive goes according to the plans," he said.
He also suggested that the government should enhance its food-grain purchase target in the current Boro season for helping farmers to get over possible losses.
Newly harvested Boro paddy is now selling at around Tk 820 a sack of two maunds while the price of the same was more than Tk 1200 in the last Boro season, he informed.