Wholesale rice prices slide

After going through a period of unusual hikes, the wholesale rice market is finally showing signs of slowing down.

Within the last seven days, the prices of all types of rice have gone down about Tk 4-5 per kg. However, retail rice prices have remained high.

Several measures have contributed to the rice price cooldown, traders say, Reduction of import duty , increasing government distribution, recent harvest in the northern areas of the country, and the decline in import costs due to a slight decline in the price of dollar have all helped in the changing market situation.

However, to keep the market stable, it is necessary to bring down dollar price, they have opined.

After visiting major wholesale markets in the capital on Thursday, this was found that miniket rice was being sold at Tk 63-67 per kg which was Tk 70-72 last week, Nazirshail rice at Tk 68-70 per kg which was Tk 73-74 last week, BR-28 rice at Tk 50-52 per kg which was Tk 56-58 last week. Coarse rice Guti-Swarna was being sold at Tk 42-46 per kg, which was Tk 45-46 previously.

While talking to The Business Post, Bangladesh Rice Merchants Association Vice President Kausar Azam said that the government has used all kinds of tools to bring down the rapidly increasing rice prices.

“Import duty has been reduced. The OMS sales have increased manifolds. The impact of all these measures has been felt in the market,” he said.

However, whether this trend will continue will depend on the fall in the dollar price, he said. If the price of rice falls further, traders are likely to incur losses by importing at a higher dollar price. This might make the market volatile again.

Naogaon District Mill Owners Group General Secretary Farhad Hossain say that wholesale rice prices have also gone down in Naogaon, one of the most notable rice hubs of the country.

In the wholesale markets of the district on Thursday, Guti-Swarna was being sold at Tk 48-50 per kg, which was Tk 53-56 last week, Jirashail or Miniket at Tk 62-68, which was Tk 66-70, BR-28 rice at Tk 55-56, which was Tk 56-60. New Pariza variety rice was being sold at Tk 46-48 per kg.

Farhad mentioned that the harvest of the new variety Pariza coming into the market has contributed to lowering the price to some extent. Apart from this, other measures including duty reduction, an increase in government distribution have also helped to reduce prices.

“If the Ropa Aman yield is good then the price of rice in the country will not increase further. In this case, the supply of fertilisers should be boosted and uninterrupted electricity should be provided,” he said.