Wholesale rice prices decline more than retail

Upon receiving the news of private imports being allowed, the prices of rice have started to go down in markets across the country, including the capital.

The wholesale price of rice has gone down by Tk 1-3 in the last 3/4 days.

Traders have said that due to the increase in supply, many agency owners have started to sell off stored rice. Hence, the price of rice has started to fall.

Moreover, traders stated some more reasons behind the fall in rice price, such as— the continued government drive against rice hoarding lack of rain, and the rise in paddy supply to the market.

However, the effect of declining prices wasn’t apparent in the retail market yet. In most markets, rice was being sold at the previous rate.

For various reasons, the price of rice continued to rise even in the Boro season, putting undue stress on the consumers. Since May 5, the price of rice increased by Tk 6-10 per kg in instalments. The food ministry then launched a crackdown on rice hoarders which is still ongoing.

However, even a strict measure such as this did not have much impact on the rice market. So, the government decided to allow private rice imports and reduce tariffs.

Food Minister Sadhan Chandra Majumder on June 6 said that the government has decided to allow private firms to import rice with a view to keeping the rice market stable. After this announcement, the price of rice started falling.

On Tuesday, Miniket rice was being sold at Tk 61-63 per kg in the warehouses of Babu Bazar, which was Tk 63-66 four days ago. Meanwhile, in the rice warehouses elsewhere in the capital, Miniket rice was being sold at Tk 3,250 per sack (50kgs), which was Tk 3,350 three days ago.

Similarly, each sack of Paijam rice was being sold at Tk 2,350, which was being sold at Tk 2,400 three days ago.

In the last three days, the price of Najirshail rice went down by Tk 100 to Tk 3,400 per sack. Coarse rice was being sold at Tk 2,300 per sack, which was Tk 2,350 before.

When asked, Bangladesh Rice Merchants Association Vice-President Kauser Azam told The Business Post that the price of rice has come down a lot. It will decrease further till the first week of next July. Many are giving up stocks of rice after receiving the news of import. But this is not the only reason.

Kauser Azam, who is also a rice trader in Babu Bazar, said that the supply of paddy in the market has increased, and now that there is no rain, the production of rice has also increased. So, the crisis is over.