Rice price on rise
Monday, 28 December 2009
FE Report
Rice price has been on the increase for the last one month. The poor people have been hit hard by the price rise.
In the last one month, the coarse rice price increased by 10.64 per cent per kg, medium quality paijam rice by 11.11 per cent and fine quality miniket by 8.57 per cent.
Price increased by Tk 0.5 to Tk 1.00 per kg in most part of the country, Ruhul Amin, director general of Food Planning and Monitoring Unit, told the FE.
"I collected news from 16 districts today (Sunday) and gathered that price increased more in Dhaka," he said.
People especially the poor ones are suffering from the price hike and the government is thinking of re-starting open market sale (OMS) operation, he added.
"The government has earmarked 0.7 million tonnes of rice for OMS operation in the current fiscal," Mr Amin said.
Over 0.2 million tonnes of rice has already been distributed under 'food-for-work' programme in the last six months, he added.
The government has sufficient stock to withhold any adverse price movement, the DG said.
"Over 1.1 million tonnes of foodgrains are in stock and the government will take measures to reduce the suffering of the people," he said.
Brac executive director Mahabub Hossain said the price spiral is the reaction of the disturbance in the international market.
"The supply side is absolutely normal in the country as the rice production was about 32 million tonnes in 2009 calendar year," he said.
"India has experienced a bad season and likely to import rice this year and local businessmen are aware of that," he said.
"In India per kg rice is selling at Rs 18 which is equivalent to about Tk 30 and if the local price is lower than that level, there are chances of smuggling of the staple food," he explained.
In the last three months price went up by 40 per cent to $500 to $600 per tonne in the international market, he said.
He pointed out that in 2006 the price was Tk 19 to Tk 20 per kg and if 25 per cent inflation is considered for the three years, the price is justified at Tk 24 to Tk 25.
The government should be careful about the price spiral and if the price goes to Tk 28 to Tk 30 level it will be a big burden for the common people, he said.
"It will be a big challenge for the government to offset the psychological pressure of the international market with whatever instruments it has," he added.
It should resort to market intervention and promote awareness programme to bring stability in the market, he said.
Rice price has been on the increase for the last one month. The poor people have been hit hard by the price rise.
In the last one month, the coarse rice price increased by 10.64 per cent per kg, medium quality paijam rice by 11.11 per cent and fine quality miniket by 8.57 per cent.
Price increased by Tk 0.5 to Tk 1.00 per kg in most part of the country, Ruhul Amin, director general of Food Planning and Monitoring Unit, told the FE.
"I collected news from 16 districts today (Sunday) and gathered that price increased more in Dhaka," he said.
People especially the poor ones are suffering from the price hike and the government is thinking of re-starting open market sale (OMS) operation, he added.
"The government has earmarked 0.7 million tonnes of rice for OMS operation in the current fiscal," Mr Amin said.
Over 0.2 million tonnes of rice has already been distributed under 'food-for-work' programme in the last six months, he added.
The government has sufficient stock to withhold any adverse price movement, the DG said.
"Over 1.1 million tonnes of foodgrains are in stock and the government will take measures to reduce the suffering of the people," he said.
Brac executive director Mahabub Hossain said the price spiral is the reaction of the disturbance in the international market.
"The supply side is absolutely normal in the country as the rice production was about 32 million tonnes in 2009 calendar year," he said.
"India has experienced a bad season and likely to import rice this year and local businessmen are aware of that," he said.
"In India per kg rice is selling at Rs 18 which is equivalent to about Tk 30 and if the local price is lower than that level, there are chances of smuggling of the staple food," he explained.
In the last three months price went up by 40 per cent to $500 to $600 per tonne in the international market, he said.
He pointed out that in 2006 the price was Tk 19 to Tk 20 per kg and if 25 per cent inflation is considered for the three years, the price is justified at Tk 24 to Tk 25.
The government should be careful about the price spiral and if the price goes to Tk 28 to Tk 30 level it will be a big burden for the common people, he said.
"It will be a big challenge for the government to offset the psychological pressure of the international market with whatever instruments it has," he added.
It should resort to market intervention and promote awareness programme to bring stability in the market, he said.