Thwart attempts to destabilise rice market

In Bangladesh, there is a history of millers, middlemen, and wholesale traders manipulating the whole process of procurement and marketing of rice to make sure there is a hefty profit for them. These elements have never shown any qualms regarding the practice and even this crisis period has not been an exception to the rule. It is an open secret that the rice millers exert pressure on the government not to what they term as interfering with the trading system of food grains. The government’s procurement drives have often been half-hearted and failed to give farmers the benefit they so rightly deserved.

The rice price anarchy in Bangladesh comes down to factors that allow unscrupulous traders to build up large stocks of rice and paddy speculatively. The authorities concerned have not done enough to prevent middlemen from hiking prices.

This season too, there are accusations that vested quarters are out to destabilise the rice market in the country. They have done so at regular intervals. What emboldens these unscrupulous elements is that they have been able to get away with their nefarious activities time and again. The middlemen are very powerful. Influential quarters support them. They force the farmers to sell paddy to them at cheap prices.

Thankfully, Food Minister Sadhan Chandra Majumder on Sunday sent out a timely warning that the authorities will take action against those who will try to destabilise the rice market in the country. According to a report published in this newspaper on Sunday, the minister came up with the warning at a view exchange meeting regarding the internal procurement of boro paddy this year and market monitoring, joining virtually from his office at the Secretariat in Dhaka. The minister pointed out that “There is an unhealthy competition among traders to buy and stockpile paddy.”

The minister directed the rice millers to send reports to officials at the Directorate General of Food regarding the amount of paddy they are purchasing and the amount of rice they are releasing into the market after processing.

Rice is not just the staple food of the Bengalis. The food and the crop are central elements of Bengali identity. Many things have changed in the lives of Bangladeshis over the years, but rice remains one constant. Rice contributes two-thirds of the total caloric need of the country and is the source of half of the country’s protein intake. A Bangladesh Bureau of Statistics study reveals that crops and horticulture’s share is about 10 per cent of the gross domestic product, with half coming from rice. Many references are scattered across Bengali texts describing rice as the primary food item in the Bengali diet.

Since independence, the population of this country has increased two-and-half times, but rice production has increased more than three-and-half fold, reflecting the success story of rice scientists, extension agents, and farmers. Bangladesh Rice Research Institute (BRRI) is one of the key contributors to this tremendous achievement. According to recent statistics from USDA, Bangladesh has had the highest average rice yield in South Asia and at per with global standards.

All these are positive signs. However, the middlemen and powerful syndicates are eating away at the gains. And those who are suffering are the farmers and the general consumers.

Experts have urged the government to procure more paddy directly from the farmers and store them with the farmers and millers to overcome the shortage of granaries. Agriculture is still the foundation of our economy. Therefore, agriculture, farmers, and farmworkers should get top priority in our development plans.

While we appreciate the minister’s warning, we have to remind the stakeholders that similar warnings have been issued earlier too. However, it has been business as usual for the syndicates even after repeated warnings. The recent edible oil imbroglio showcased how certain unholy syndicates are becoming more powerful than the state apparatuses. The authorities must take measures to rein in these syndicates. Warnings and appeals will not suffice. What is needed are tough and timely (and pre-emptive if necessary) actions.