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Big companies are directly delivering packaged rice to retail shops, reducing hassle of shopkeepers and bringing significant changes to the supply chain.
With this, retail shopkeepers won’t have to collect packaged rice from the wholesale market while the demand for packaged rice is increasing. Despite high prices, many people prefer packaged rice to avoid additional hassle and this rice is now available in shops of remote areas as well, said shopkeepers.
Besides, the number of wholesale traders rose rapidly in the capital’s markets who collect rice from mills and sell them in local markets at retail and wholesale prices.
Businessmen claimed that entry of corporate companies and increased number of wholesale shops have reduced rice sell up to 40 per cent to 60 per cent in recent times.
After visiting different markets in the city, The Business Post correspondent found that packaged rice of 8-10 companies including ACI, Teer, Pran, Rupchanda, Square and Akij are being sold in good amount. These companies are delivering rice along with flour, sugar and other necessary goods at small and large shops and markets. Five to 25 kilograms packets of different types of rice including Paijam, Nazishail, and Katarivog are available in shops.
A local shop in Maniknagar area showed large number of packaged rice were available, most of them were packets of 5 kg and 10 kg. Shop owner Md Rafi said once package rice was only sold in supershops and posh areas of the city but currently their market share is rising and demands are expanding despite high prices. Many small families prefer buying packet rice to avoid discomfort, he said. Five kg Miniket and Nazishail packets were being sold at Tk 390-410 with Tk 78-82 per kg while unpacked rice is available in the markets for Tk 62-68 per kg.
Experts in this sector said the rice sector witnessed significant profit amid the pandemic as rice prices have rose abruptly after Covid-19 hit the country. As a result, more people got involved in rice trade while many chose rice selling as a form of safe investment.
Prices of all daily essentials rose unnaturally due to supply disruption in March 2020 amid Covid-19 outbreak. Although the supply chain recovered later, rice prices never returned to normal.
Agriculture Ministry carried out a research to find out the cause behind this where agriculture economist Dr Jahangir identified seven reasons. He blamed increasing number of seasonal traders and dominance of large traders as one of the main causes of price hike.
Vice-President of Bangladesh Rice Merchants’ Association and rice trader of Babubazar Nizam Uddin said rice trading saw progress along with production and consumption but business got limited in the wholesale markets.
“As per my assumption, rice trading reduced by 40 per cent to 60 per cent in every wholesale market. And 10-11 large companies got involved in the rice market last year. They have investment in wholesale and retail business; they have sales representatives in every area,” he said.
Besides, large rice shops and agency numbers increased in different areas, including Malibagh, Segunbagicha, Kamalapur, Mirpur and Mohammadpur while old shops also increased their capacity. As a result, even small rice traders are not buying rice from wholesale markets.
Cumilla Rice Agency in Hazipara of Rampura has a storage capacity of around 1,000 sacks. Shop owner Md Sohel said he earlier worked in his sister-in-law’s shop in Malibahg and opened his shop six months ago. He collects rice from mills in Dinajpur, Naogaon directly and sell them at wholesale and retail prices.
“I don’t have to buy rice from the wholesale market. The business is profitable.”, he said.
Another shop beside him was also opened two years back which also collects rice directly from different districts and sells them in the city.
