Rice prices still remain higher in the local market as millers and traders have not responded to the warnings issued by the food minister.
Coarse rice was selling at Tk 52-55 a kg, medium at Tk 65-68 and finer at Tk 75-98 in Dhaka, a Tk 5.0-7.0 hike a kg since January 08, according to market sources.
Meanwhile, global rice prices increased further, making it more difficult for the government to source rice from the internal market, according to FAO data.
On January 17, food minister Sadhan Chandra Majumder warned traders and millers of action from a press conference unless prices are reduced within four days.
Two and a half weeks have passed, but retail prices are still at the same level, according to groceries.
The traders and millers raised rice prices by Tk 5.0-7.0 a kg just after the January 07 general election.
Coarse rice shot up to Tk 52-55, medium to Tk 65-68 and finer to Tk 75-98 at retail outlets in Dhaka and Chattogram cities.
Meanwhile, the Ministry of Food and the Directorate of National Consumer Rights Protection have conducted countrywide drives and fined dishonest traders.
But mill-gate prices have still remained unchanged.
The prime minister has recently directed the authorities concerned to reduce import duty on four products, including rice, to maintain a rational price during the coming holy month of Ramadan.
The revenue board, however, is set to make the duty 15 per cent for rice from existing 62.5 per cent as per a report published in The Financial Express.
Shamsul Haque, a Rangpur-based importer, said despite the duty cut, import cost would be much higher than the existing domestic price.
Coarse rice, which is being sold at Tk 42-46 a kg at mill gates, would cost Tk 46-48 if it is imported without any duty, he added.
Import cost of medium-quality rice like BRRI dhan 28 would be more than Tk 55 a kg, he said.
Mr Haque said private importers would not be interested in bringing in rice if any import duty was in force for now.
Anwar Hossain Babul, owner of Olima Traders in Nilphamari, said millers have reduced rice price by Tk 1.0-1.5 a kg in the last two weeks after raising it by Tk 5.0-6.0 in the second week of January.
He said it was now not possible to reduce prices further as coarse paddy prices jumped to Tk 2,350-2,450 per 75-kg sack, marking a Tk 200-250 hike per sack.
Mr Babul said there was a plenty of rice and paddy across the northern region for now, but prices were still higher.
Meanwhile, the FAO All Rice Price Index (FARPI) increased by 1.2 per cent in January 2024 to reach 142.8 points.
At that level, the FARPI stood at 13.0 per cent above its year-earlier value and at its highest, in nominal terms, since August 2008, said the FAO monthly report.
Indica quotations (indica species is being consumed mainly by South and South-East Asians) drove the January increase of the FARPI, rising 1.3 per cent above their December levels.
Indian and Pakistani parboiled rice was available at $530-553 a tonne, while Vietnamese and Thai one at $599-650, according to the FAO.
Value-chain expert Prof Dr Md Rashidul Hasan said global rice prices were now going through a record-high level, while import options for Bangladesh have been squeezed amid an Indian export ban.
According to him, proper management of domestic stock is very necessary now to tackle any possible shortage as the country got a handsome 15-million tonne production in the just-ended Aman season.
Mr Hasan said India earlier intended to give Bangladesh rice under a quota facility.
Apart from India, he suggested that private companies be given all facilities to bring rice from other countries like Thailand, Vietnam and Pakistan to maintain smooth supplies and rational prices.
Import duty should be zero per cent for now to encourage importers, he observed.
Again on February 01, Mr Majumder warned that the government would take tough action if anyone is involved in business without complying with law.
He said it is not appropriate to increase the rice price suddenly without any reason.
Process is underway to ensure a price tag on rice bags given by the millers, he said.
He has urged the local civil and police administration to take action against rice hoarding.
In case of any rice hoarding, law violators must be brought to book, he warned.
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