Home ›› 13 Aug 2021 ›› Front
Despite record production and regular imports, rice prices remain remarkably high in the local market.
The finer variety was selling for Tk 60-65 per kg in Dhaka, while BRRI-28 cost Tk 55. The price of coarse rice was Tk 47-48 and Nazirshail Tk 68-70.
Bangladesh produced at least 12 lakh tonnes more Boro rice compared to the previous season. According to the Department of Agricultural Extension, Bangladesh produced 2.8 crore tonnes of Boro rice this season, which was 1.96 crore tonnes in the last season.
On the other hand, the country imported 15.36 lakh tonnes of rice in 2021, the second-highest import in the last two decades. In FY2017-18, Bangladesh imported around 39 lakh tonnes, the highest so far.
Some millers said they kept their mills shut but declined to disclose the reasons. The closure of husking mills has pushed up the price of rice bran to Tk 35 per kg from Tk 25.
A rice bran mill owner said that millers had stored paddy hoping to get higher prices in the future, which raised the price of bran.
“The millers don’t provide us bran even though they have a huge stock of paddy,” he said.
But millers rejected the claim.
“We are not responsible for the price hike,” Bangladesh Auto Major Husking Mill Owners’ Association Secretary KM Layek Ali told The Business Post.
“The rice market is seeing low demand, and due to covid-19, we are facing a liquidity crisis. That’s why some of our millers temporarily shut their mills. It has nothing to do with storing rice or paddy,” said Ali.
Food Secretary Mosammat Nazmanara Khanum told The Business Post that the government did not have actual annual demand data.
“Our findings showed that farmers and middlemen are holding on to some of the produced rice. They stock it for making more profit. How can we stop them?” she asked. “To ensure a stable market, we approved the import of 10 lakh tonnes of rice,” Khanum said.
The government decided to import 10 lakh tonnes of rice from India, but due to low quality, it cancelled a shipment.
Millers buy paddy in bulk at the beginning of the harvest. Stakeholders recommended that the government stock a minimum of 10 per cent of total demand or production to ensure a stable rice market.
They also suggested finding out the main reason behind the price hike.
“The government should meet the demand by imports and increase social safety net programmes to help the low-income people. It will help create a stable market,” said Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh.
Food Secretary Khanum said they were assessing the demand. “After completion, we will be able to know the demand and supply situation. It will help us to create a stable market,” she said.
