Wholesale rice price falls but not at retail level
Thursday, 6 November 2008
Mahmuda Shaolin
Rice prices have started to fall by upto 16 per cent in the city's wholesale markets against the backdrops of millers' rush to clear off their buffer stocks ahead of the Aman harvest.
But the price fall in the wholesale market has had "little" impact on the retail level, leaving the low-income groups to rue over the profiteering by retailers, traders at Babubazar and Noyabazar said Wednesday.
They said rice price at retail-level is still higher, although prices of different varieties of rice fell by Tk 150 to Tk 200 per maund in the wholesale markets, with supply heating up.
"Prices continue to fall. The reason is simple-millers are clearing their stocks to replace those with the newly-arriving Aman," said Mohammad Naim, president of Bangladesh Rice Merchants Association Wednesday.
Top traders also supported the view of the association chief, saying the price is expected to fall further when Aman rice starts arriving in city depots.
Talking to the FE, Abdul Karim, a wholesaler, said that the influx of Aman rice would help push down prices.
He, however, noted that the speculation over the Indian rice exports to Bangladesh amid the depreciation of Rupee against dollar might be another reason why prices were coming down.
Mr Karim added that the mismatch between the period of supply and price change in the wholesale market could be blamed for the negligible impact of rice prices on the retail market. "You see, wholesalers get delivery every alternate month. But rice price fluctuates in the wholesale market everyday. This allows retailers to capitalise."
Md. Mostafa, a salesman at the city's Babubazar wholesale market, said the price would come down further in the coming days as the arrival of Aman would further bring down rice prices.
Currently, at the wholesale level, the 'minicate' variety of rice was selling at Tk 1300 to Tk 1400 per maund (37.300 kg) and the 'nazirshail' variety at Tk 1200-Tk 1600 per maund against the previous rates of Tk 1450 -Tk 1520 per maund and Tk 1450-Tk 1650 per maund respectively during the previous week.
The prices of coarse varieties of rice fell sharply but those of fine varieties, said Mizanur Rahman, proprietor of Ma-Moni Rice Agency at Mohammadpur.
Rice prices have started to fall by upto 16 per cent in the city's wholesale markets against the backdrops of millers' rush to clear off their buffer stocks ahead of the Aman harvest.
But the price fall in the wholesale market has had "little" impact on the retail level, leaving the low-income groups to rue over the profiteering by retailers, traders at Babubazar and Noyabazar said Wednesday.
They said rice price at retail-level is still higher, although prices of different varieties of rice fell by Tk 150 to Tk 200 per maund in the wholesale markets, with supply heating up.
"Prices continue to fall. The reason is simple-millers are clearing their stocks to replace those with the newly-arriving Aman," said Mohammad Naim, president of Bangladesh Rice Merchants Association Wednesday.
Top traders also supported the view of the association chief, saying the price is expected to fall further when Aman rice starts arriving in city depots.
Talking to the FE, Abdul Karim, a wholesaler, said that the influx of Aman rice would help push down prices.
He, however, noted that the speculation over the Indian rice exports to Bangladesh amid the depreciation of Rupee against dollar might be another reason why prices were coming down.
Mr Karim added that the mismatch between the period of supply and price change in the wholesale market could be blamed for the negligible impact of rice prices on the retail market. "You see, wholesalers get delivery every alternate month. But rice price fluctuates in the wholesale market everyday. This allows retailers to capitalise."
Md. Mostafa, a salesman at the city's Babubazar wholesale market, said the price would come down further in the coming days as the arrival of Aman would further bring down rice prices.
Currently, at the wholesale level, the 'minicate' variety of rice was selling at Tk 1300 to Tk 1400 per maund (37.300 kg) and the 'nazirshail' variety at Tk 1200-Tk 1600 per maund against the previous rates of Tk 1450 -Tk 1520 per maund and Tk 1450-Tk 1650 per maund respectively during the previous week.
The prices of coarse varieties of rice fell sharply but those of fine varieties, said Mizanur Rahman, proprietor of Ma-Moni Rice Agency at Mohammadpur.