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Soaring rice prices strain OMS

FE REPORT | January 07, 2025 00:00:00


The queues in outlets where the government-administered open market sale (OMS) of rice takes place have gotten longer in recent weeks amid the staple's rocketing prices.

Coarse and medium rice prices have soared to Tk 60-70 a kg from Tk 50-62 a kg a month back, forcing hundreds of people to source subsidised rice and flour from OMS outlets.

The minimum market price of a kg of coarse rice (guti swarna variety) stands at Tk 60, while coarse flour is not available at less than Tk 55 a kg. OMS outlets sell rice at Tk 30 a kg and flour at Tk 28 a kg.

OMS programmes are being operated through 191 sales centres in the capital where crowds are growing bigger day by day, while many have to go home empty-handed because of limited allocations.

Nationwide, the food directorate operates OMS programmes at 906 centres, allocating one tonne of rice and one-two tonnes of flour per outlet daily.

Sumaiya Khanom, wife of a bus employee, queued at the Malibagh OMS truck on Monday morning.

"I could not buy rice from the truck on Sunday as I was late. I arrived earlier today to get it. This could save me Tk 150," she told The Financial Express.

She also said the prices of rice, edible oil, chicken, cultured fish, and pulses had increased notably but that of vegetables and potato declined to some extent.

Julhas Ali, a rickshaw puller at Rayerbazar, said he targets to buy rice and flour from OMS outlets every two days, adding the prices of everything had increased significantly in the last few months.

At the Adabar outlet, the crowd started forming at 7am, though the OMS truck did not arrive until 8:30am.

Shofiar Rahman, manager of the truck, was busy maintaining the queue to avert possible wrangles among consumers.

He said, "We only have 1,000 kilograms of rice and 1,000 kilograms of flour, which could serve only 200 people. But a minimum of 500-600 people show up every day to buy rice."

OMS operations remain suspended every Friday and Saturday, limiting the availability of subsidised goods further, added Rahman.

Consumers Association of Bangladesh (CAB) Vice President SM Nazer Hossain said the poor's situation had worsened amid skyrocketing prices of essentials, including rice.

He said the government data had put food inflation at nearly 13 per cent.

"Millers are raising rice prices at their discretion due to a lack of proper monitoring. On the other hand, they are not cooperating with the government to complete the Aman procurement drive, where the food directorate has aimed to purchase 0.7 million tonnes of the staple grain," he further said.

The CAB official said millers should be compelled to supply rice to government warehouses as per their prior contracts. "Otherwise, their licences and permission to operate should be revoked."

Private importers should be encouraged to bring in rice, and they should be given subsidies if needed, Hossain said. "Rationing for 40 million poor people is now necessary to improve their situations."

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