Rice prices fall at wholesale, no impact on retail market yet

The harvesting of new paddy has already made an impact on the wholesale rice market with prices decreasing even though the new rice is yet to enter the markets. But there seems to be no impact at the retail level yet while prices are even in-creasing in some markets.

According to industry insiders, rice sales have declined in line with decreasing consumer purchasing power. Many rice mills and traders have not been able to sell last season’s rice. Now, even as newly harvested rice is entering the market, they do not have the capital to procure those.

In a press statement issued on Monday, the Ministry of Agriculture said 70 per cent of paddy in haor areas have already been harvested. The rest of the paddy will be harvested in a few days.

Traders said rice price is decreasing in various regions including Naogaon, Dinajpur, Rajshahi, which are major source markets of the staple food, as new paddy and rice is entering the market.

Sources said the price of fine rice has already fallen by Tk 6-7 per kg in the last month. The price of coarse rice has de-creased by Tk 2-3 per kg during the period.

Meanwhile, Trading Corporation of Bangladesh (TCB) data shows that although rice prices have remained at the same level for the last one month, the price is still 2 to 5.5 percent higher than last year.

Compared to the same period last year, the price of fine rice increased by 5.47 per cent, the price of medium quality rice increased by 1.92 per cent and the price of coarse rice increased by 2.15 per cent, according to TCB.

However, at the retail markets, including in the capital, most of the rice is actually being sold at higher prices.

According to the rice price data released by the Department of Agriculture Marketing, the prices of all types of rice prices in the Aman and Boro seasons have increased by up to 4.5 per cent in the last one week.

Farhad Hossain, general secretary of Naogaon Rice Mill Owners Association, told The Business Post that the consumption of fine rice has decreased a lot due to the decrease in the purchasing power of the people.

“Most of our previous paddy and rice remains unsold. We do not have the capital to buy new paddy. The price of paddy and rice has decreased by Tk 6-7 per kg in Naogaon district in the last one month. The rice we used to sell for Tk 3,300 per 50 kg, is now being sold at Tk 2,900.”

Visiting various markets in the capital, this correspondent found that prices of various types of rice, including miniket, naz-irshail, katari nazir and jirashail, have increased in the last few days.

According to the Department of Agriculture Marketing, Boro fine rice is currently being sold at Tk 71-74 per kg, which is 2.80 per cent higher than a week ago. Also, during the period, medium rice price has increased by 0.6 per cent to Tk 57-60 per kg, and coarse rice price has increased by 2.82 per cent to Tk 48-50 per kg.

Besides, Aman fine rice is selling at Tk 73-77 per kg, 4.03 percent higher than last week. Medium quality rice is being sold at 4.47 per cent higher prices at Tk 56-59 per kg and Aman coarse rice is selling at Tk 48-50 per kg which is 3.20 per cent high-er than the previous week.

According to TCB, miniket and nazirshail rice are being sold at Tk 60-75 per kg, medium quality rice at Tk 50-56 per kg and coarse rice at Tk 45-50 per kg. The prices have remained unchanged for the last one month.

Yunus, a retailer of the Maniknagar market in the capital, said, “We heard that the price of rice has decreased at the wholesale level, but when we try to procure rice from the wholesalers, they ask for higher prices. But in general, when new paddy grows, the price of rice decreases in the market.”