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Turmoil hits rice millers hard

Yasir Wardad | Sunday, 18 January 2015



The ongoing blockade which started from January 6 last has affected the operation of nearly 80 per cent of rice mills during the peak Aman season.
Meanwhile, the city traders said the prices of rice have already recorded some rise and the trend will continue because of their depleting stocks.
The price of Swarna, the widely grown rice variety in Aman season is being traded at Tk 35-36 per kg while Miniket at Tk 48-52 per kg, Paijam at Tk 38-40 (new) and Tk 44-46 (old) per kg, Najirshail at Tk 56-57, Brri dhan-28 at Tk 42-44 per kg, Brridhan 29 at Tk 40-42 per kg in the city's kitchen markets for the last two weeks.
Supply of rice from the big milling hubs including Dinajpur, Rangpur, Kushtia, Joypurhat, Naogaon and Pabna has declined by 80 per cent for ten days, Md Abdul Wahed, a rice trader at Kochukhet Bazar said.
"I need supply of 18 tonnes of rice per week. The last truck entered my godown Kochukhet Bazar on January 4," he said.
Traders at Maulovibazar, Chhoto Katra, Nowabganj Bazar and Mohammadpur Krishi market also had the same views that of Mr Wahed.
They said their stock will be exhausted in a few days which may cause increase in price.
Secretary of Bangladesh Auto Major and Husking Mills Owners' Association, the biggest platform of the country's rice millers, KM Layek Ali, said that the sector is incurring at least Tk 1.0 billion loss per day due to the suspension of operation of 80 per cent mills.
Nearly 7.0 million workers do not have any work to do.
He said 80 per cent out of 20000 mills across the country have stopped their operation which will have a serious impact on market as price of the staple may hike significantly.
He said in peak seasons like Boro and Aman, millers husk nearly 60000 tonnes per day (for three months) which has been reduced to just 15000 tonnes as orders from Dhaka, Chittagong and elsewhere in the country are being cancelled fearing vandalism in highways.
Mr Layek said nearly 550-600 trucks laden with 10000 tonnes of rice move to big cities per day from north-western region.
The number has been reduced to now just 80-100, he said.
Shahidur Rahman Patwary Mohan, executive member of BAMHMOA said truck owners are not willing to ply their vehicles and the owners who are taking risk is charging double fare.
"Truck fare from Dinajpur has gone up to Tk 24000-25000 which was Tk13500-14000 in pre-blockade period," he said.
He said apart from the 22 million farmers, nearly 7.0 million people are directly involved in rice milling and another 4.0 million are indirectly depend on it.
He said the mill owners and the workers are passing a tough time due to the blockade.
Most of the mills depend on bank loans and count interest of 17-19 per cent which is adjusted in three months' basis.
He said, "Most of the millers will not be able to pay back the loan in 45 days which will put them in difficulties to get loans in future."
However, transport owners are in great fear to run their vehicles on highways during the ongoing blockade despite the government's assurance of providing enough security and compensation.
Truck, bus and covered van owners said they were not getting enough confidence to run their vehicles because of growing attacks on transports like buses, trucks, pickups and covered vans on the country's highways.
Official data showed that a total of 230 vehicles were torched since January 4 to January 15 by the pickets all over the country. The number included 115 buses, 65 trucks, 65 covered vans and cargoes, 15 pickups and 8 cars.
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