Rice prices drop as new crops hit local market

New crops of rice – planted this Boro season – have started to hit the local market, increasing the supply of Miniket and BR-28 varieties, and driving down the food grain prices at both wholesale and retail levels.

The price of newly harvested rice has dropped by around Tk 3 per kilogram in the last 15 days. Previously harvested rice remains available in the market, but their prices have not changed.

Bangladesh Rice Merchants Association’s Vice-President Kawsar Azam said, “Rice prices will further drop within the next week as supply will continue to go up. Besides, newer crops of rice are set to hit the market in the coming days, which will drop the prices even more.

“I do not, however, think the prices will drop as per our expectations, because the involvement of corporate organisations has created more competition in the rice market. But the farmers are benefitting from the competition, and I see this as a positive development.”

On a spot visit to different kitchen markets in the capital’s Rampura, Malibagh and several other areas, the correspondent found that traders are selling new crops of Miniket rice for Tk 60 – Tk 61 per kg, a drop from Tk 64 around 15 days ago.

The price of new BR-28 rice has dropped by Tk 2 per kg to Tk 46 – Tk 47, while the old rice of the same variety is being sold for Tk 49 – Tk 50. The price of Paijam rice has dropped from Tk 45 – Tk 46 to Tk 43 – Tk 45.

Besides, Jira Najir rice is being sold for Tk 60 per kg, Katari Najir for Tk 68 per kg, and Jirashail for Tk 52 per kg.

Industry insiders say the consumer demand for coarse rice has been declining steadily, and the variety is currently being sold for Tk 40 – Tk 42 per kg. The new crop of Najirshail rice is yet to be available in the local markets, so the price of this variety has not changed.

Najirshail rice is now being sold for Tk 68 – Tk 70 in the retail market.

Providing more details, Alamgir of Moriam Store in Gopibagh bazar said, “Rice prices have been dropping since before this Eid-ul-Fitr. But the supply of this food grain got low in wholesale markets following Eid, which halted the downward trend of rice prices.

“So, rice prices did not go down this season as they were supposed to.”

Echoing the same, Bangladesh Rice Merchants Association’s Vice-President Kawsar Azam said, “The supply of rice in wholesale markets had dropped right after the Eid because many mills were shut during the holidays, and there was also a shortage of trucks.”

Traders in the capital’s Babu Bazar – one of the largest wholesale rice markets in the country – are selling new Miniket rice for Tk 57 – Tk 58 per kg. Old Miniket rice is still being sold for Tk 61 – Tk 62 per kg, and Najirshail for Tk 67 – Tk 68 per kg.

Data from the state-owned Trading Corporation of Bangladesh (TCB) show that the price of fine rice is still 2.44 per cent higher when compared to prices recorded during the same date last year.

Traders were selling fine rice for Tk 58 – Tk 68 per kg on Thursday, a drop from Tk 60 – Tk 68 last week. The rice variety was being sold for Tk 58 – Tk 65 the same period a year ago.

However, the price of medium quality rice has dropped by 5.66 per cent compared to last year. Traders in Dhaka’s markets sold medium quality rice for Tk 45 – Tk 55 per kg on Thursday, a decrease from Tk 50 – Tk 55 per kg recorded last month.

Medium quality rice prices stood at Tk 50 – Tk 56 the same day last year.

Data from the food ministry show that the government warehouses held a stock of 10.39 lakh tonnes of rice until last Sunday. During the same period, Bangladesh imported 6.77 lakh tonnes of rice at government level, 3.06 lakh tonnes under private level.

The government also procured 74 tonnes of paddy and 48 tonnes of rice until Sunday this Boro season. It has a target of procuring 6.50 lakh tonnes of paddy and 11.50 lakh tonnes of rice during this season.