Rice prices at wholesale markets and mills have gone down after rising sharply around two weeks ago, thanks to the government’s monitoring and mobile court activities. The retail markets are however yet to cool down.
A number of retailers told The Business Post that once they sell off the rice bought at higher prices, the price of this staple food item will gradually decrease everywhere. Some traders however claimed that it will be difficult for the government to tackle rice market volatility until Boro arrives.
Although many traders claim that it will be difficult for the government to suppress the volatility of the rice market until Boro rice arrives.
The Directorate of Agricultural Marketing, under the agriculture ministry, collects data on wholesale and retail markets on a daily basis.
According to their market information on Thursday, fine rice – such as Miniket and Nazirshail – sold at wholesale level for Tk 60 – Tk 72 per kg in various markets of the capital, including Babubazar and Karwan Bazar, which was at Tk 60 – Tk 73 per kg a week ago.
Medium quality rice is being sold for Tk 48 – Tk 52 a kg, which was Tk 50 – Tk 53 a kg a week ago. Besides, coarse rice is being sold for Tk 45 – Tk 47 per kg, which was Tk 47 – Tk 48 per kg a week ago.
The data shows that fine rice is being sold at Tk 65 – Tk 78 per kg in the retail market on Thursday in the capital, which was Tk 65 – Tk 80 per kg a week ago.
Medium quality rice is being sold for Tk 54 – Tk 58 per kg, compared to Tk 55 – Tk 60 per kg a week ago. Meanwhile, coarse rice is being sold for Tk 48 – Tk 52 per kg compared to Tk 50 – Tk 52 per kg a week ago.
Sudden abnormal rise
According to market data, the price of rice started increasing at the beginning of this month despite the availability of Amon season paddy. During that period, rice prices in the wholesale and retail markets rose by Tk 2 – Tk 6 per kg in two weeks until the middle of the month.
The traders claimed that the mill owners have increased the price of rice. However, the mill owners claimed that the price of paddy has increased due to reduced supply in the market.
As the price of rice suddenly increased, the food ministry started market monitoring. Every day several teams conducted raids in mills, wholesale markets and retail markets.
These mobile teams fine various traders for keeping excess stock, excess profit and unreasonable prices. According to the information of the ministry, the mobile monitoring team collected an average of Tk 3 lakh – Tk 4 lakh in fines.
At the same time, officials in the food ministry held several meetings with various business groups and mill owners and ordered to stop illegal stockpiling of paddy.
Officials also ordered wholesale and retail prices to be displayed on rice packets so that the retailers could not increase the prices abnormally.
With these measures, the price of rice per kg will come down by Tk 0.05 – Tk 2 in the wholesale markets of the capital in the last one week.
However, retail traders say that once the sale of rice purchased at the previous high price is over, the sale of rice at a reduced price will begin. The consumers can then buy rice at lower prices.
Md Yunus the owner of Mariam rice store in Maniknagar area of the capital said, “The price of rice had increased by Tk 200 – Tk 300 per 50 kg sack in two weeks. However, it has started to decrease. In the last one week, the wholesale market has decreased by Tk 30 – Tk 80 per sack.
“If the price of rice goes up, retailers like us lose, because our sales decrease by a lot. Besides, we have to be accountable to the buyers. So we want to sell rice at a price as low as possible.”
