Padma Bridge to create new rice market

Padma Bridge will create a new market in Dhaka and other major districts and cities for the paddy and rice grown in all the districts under the country’s southern region.

According to traders and the Department of Agricultural Marketing (DAM), out of 21 southern districts, only a handful including Kushtia and Jhenaidah currently have rice mills that husk paddies from Barishal, Satkhira and several other districts.

From those mills, the rice goes back to the southern districts. The surplus amount, left after meeting those districts’ demand, then enters the markets in Dhaka.

Once the Padma Bridge is open, rice trade between the south and the rest of the country will get a major boost as all the southern districts, including Khulna, Bagerhat, Barishal and Bhola, will have a direct line of communication with Dhaka and other regions.

The multipurpose bridge, which was inaugurated on Saturday, is set to open to traffic on Sunday.

According to Department of Agricultural Extension (DAE) data, the paddy harvested during the Boro season meets two-thirds of the country’s rice demand every year.

On average, at least 2 crore tonnes of rice is harvested during the Boro season annually and 20 per cent of that comes from Jashore, Khulna, Barishal and Faridpur.

Out of all the southern districts, Jashore yields the highest amount of rice — nearly 7 lakh tonnes, says DAE data.

Apart from the south, out of the total rice demand, 22 per cent comes from Rajshahi, Naogaon, Dinajpur, Sylhet and Sunamganj — which comprises one of the largest rice markets in the country.

Industry insiders said that although a lot of paddies are grown in the south, rice does not come to Dhaka directly from all the districts.

They said Kushtia is another major market but rice from there comes to Dhaka after crossing the Padma by ferry via Paturia. Besides, the paddy harvested in Khulna and Barishal goes to Kushtia and the districts in the country’s northern region.

The Padma Bridge’s opening will pave the way for direct rice trade between Dhaka and the southern districts.

GM Mohiuddin, the head (deputy director) of DAM Khulna Division, told The Business Post, “Even the paddy grown in Barishal now goes to the mills in Kushtia and then the husked rice goes back to Barishal.

“After the southern districts’ demand is met, the surplus rice is then supplied to the northern districts, Dhaka and other districts. The bridge will lead to the establishment of rice mills in every district and a direct trade route.”

Traders also said that the bridge will largely reduce the supply time and cost.

Nizam Uddin, general secretary of Dhaka’s Babubazar-Badamtali Rice Depot Owners Association, told The Business Post, “At present, we don’t get any rice from Khulna and Barishal, even though these districts grow a huge amount of paddy.”

“It takes a lot of time now for rice shipments from the southern districts to enter Dhaka via ferry routes. But rice from these districts will easily enter Dhaka after the bridge opens. This will also significantly bring down our supply cost and time,” he added.