Rice prices have begun to display volatility after remaining stagnant for around the past three months amidst surging commodity prices.
This price shock has primarily affected the lower-and medium-quality segments of the food staple, raising concerns about inflation and placing additional pressure on consumers in these segments, who are typically poor and lower-middle-income individuals.
In the past week, garlic and potatoes have also joined the food price rally. Traders attribute the rice and potato price increases to limited supplies, while import issues are cited for the rising cost of garlic.
Following a three-month period of stability, coarse and medium rice prices increased by Tk 2.0-3.0 per kilogram in the last week. Coarse rice was being sold at Tk 50-54 and medium rice at Tk 58-65 per kilogram on Friday.
Abdul Karim, a grocer in Katasur, Mohammadpur, noted a decline in the supply of coarse rice varieties in the wholesale market.
The Aman season coarse variety, Swarna, had nearly disappeared, with only boro season hybrid coarse rice available in the Mohammadpur Krishi Market, selling at Tk 46-48 per kilogram.
"We are retailing those at Tk 48-52 per kilogram," said Abdul Karim.
Meanwhile, finer rice prices remained stable at their previous highs, ranging from Tk 70-98 per kilogram.
Ashraf Uddin, a trader based in Badamtoli, claimed that the government had procured most of the coarse rice from the Boro season. Some coarse rice had been imported, but the stocks had already been exhausted. Medium varieties from the Boro season now dominate the market.
He said the price of BRRI dhan 28 had risen from Tk 51-52 per kilogram to Tk 54 per kilogram at mill gates over the past seven days.
Garlic prices surged to Tk 250-280 per kilogram, marking a further increase of Tk 20 per kilogram. Traders attributed this increase to rising import costs.
Potato prices also rose by Tk 5.0 per kilogram, with retail prices ranging from Tk 45-55 per kilogram in Dhaka city. Potatoes witnessed an 8.0-10 per cent hike in just a week. The current price of potatoes is 61 per cent higher than it was a year ago.
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