Despite having a record output and substantial imports, prices of most of the varieties of rice have increased in last few days in the city.
Traders however, attributed the hike to increase in paddy prices while experts blamed nexus between traders and importers for the rise.
Rice, the staple crop, is cultivated in three seasons in Bangladesh. They are Aus, Aman and Boro, contributing 7.0 per cent, 38 per cent and 55 per cent respectively to total rice output, according to the ministry of agriculture.
According to the Bangladesh Bureau of Statistics (BBS) data, rice production in 2014 fiscal year was all-time high of 34.365 million tones, which was 33.77 million tonnes a year earlier.
An official at the Directorate General of Food (DGoF) said that besides the robust domestic output, the country imported nearly 0.374 million tones of rice last fiscal through private sector.
He said importers brought rice nearly 0.14 million tonnes worth US $55 million in the first two months (July-August) of the current financial year (FY'15).
However, coarse varieties including Brridhan-29, Swarna, Parija, BR-11, L/C rice (imported Indian Swarna), hybrid rice, medium quality Brridhan-28, Paijam, finer varieties like Miniket, Najirshail witnessed a Tk1-4 per kg hike in last seven days.
Swarna varieties both local and imported were sold at Tk 37-38, hybrid at Tk35-36, Brridhan -28 at Tk42-44, Paijam at Tk42-44, Miniket at Tk50-54, Najirshail at Tk52-57 per kg on Monday in city retail markets---Tk1-4 increase in last ten five days.
According to traders at Kustia, Dianjpur, Naogaon and Pabna, prices of rice of all varieties increased by Tk0.5-0.75 (course rice) per kg and Tk0.75-Tk1.25 (finer variety) per kg in the last 10 days at mill gates.
Consumers Association of Bangladesh (CAB) secretary Humayun Kabir Bhuiyan said people got no benefits from the record domestic output as well as imports.
He said the government should have to search where rice is going.
"Hoarding, syndication of traders and importers are the main reason behind the hike," he said.
Farm economist ASM Golam Hafiz Kennedy said there is no logic behind increase in rice prices as domestic production was good.
He also said that the country is importing a large volume of rice for the last 15 months through private channel.
Importers and their allied traders are now dominating the market, which is responsible for the hike, he said.
"Market monitoring should be increased whether the millers, importers or their allied traders are following the government instruction of 60 days stock facility," he said.
Asked, Bangladesh Auto, Major, Husking Mill Owners' Association (BAMHMOA) executive committee member Shohidur Rahman Patwary (Mohon) said paddy price maintained a high trend from last Aman harvest.
He said farmers got prices between Tk 680 and Tk 750 for per maund (40 kg) of normal variety of paddy in harvesting season. The prices of different varieties of paddy are now hovering between Tk800 and Tk 950 per maund.
Higher prices of paddy and higher interest rates of bank loan are the two major reasons behind the recent price hike, he added.
But he said price will come down in a month with the beginning of Aman harvest.
According to the Directorate General of Food (DGoF), the country's rice demand stands at 31.0 million tonnes.
Overall rice production was 34.365 million tonnes in FY'14, compared with 33.77 million tonnes the year before.
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