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Despite increased paddy production during the last Boro season, the price of rice, Bangladesh's staple food grain, has been gradually rising over the past month.
Market data shows that rice prices have surged by Tk 4-5 in the last month, including a Tk 1-2 hike just in the past week. This upward trend has caused significant concerns among low- and middle-income consumers struggling to manage household expenses.
Buyers noted that Bangladesh's highest rice production period occurs during the Boro season, which ended just one to one-and-a-half months ago. This season's rice stock meets most of the country's needs. However, with four months remaining until the next Aman season, the next harvesting period, there are growing concerns regarding the continuing price hikes.
However, mill owners and wholesalers explained that the market supply of Boro paddy has decreased, driving up the prices. They attributed that as the cost of paddy rises, so does the price of rice. According to Trading Corporation of Bangladesh (TCB) data, the price of all rice varieties at the retail level is currently 4-7 per cent higher than the previous year.
Alomgir Hossain, a rice retailer in the Maniknagar area, observed, "The price of all rice varieties has increased by Tk 50-100 per sack (50 kilogrammes) within a week. The sack of rice I bought for Tk 2,700 last week now costs Tk 2,750. Additionally, a 50 kg bag that was Tk 3,100 a week ago now costs Tk 3,200.
“With the Boro rice season ending in May-June and the Aman season not starting until November, we have to rely on Boro paddy to meet the demand for the next 5-6 months," he added.
Data shows more
According to the Department of Agriculture Extension, the country’s paddy production during the Boro season for fiscal year 2024 increased by 8.21 per cent compared to FY23. This year, Boro production exceeded the target, with a goal of 2.22 crore tonnes and an actual yield of 2.24 crore tonnes, surpassing the target by 90 per cent.
In contrast, the target for Boro production in FY23 was 2.15 crore tonnes. However, the actual production was 2.07 crore tonnes, falling short by eight lakh tonnes (3.72 per cent).
Amid this situation, market insiders claim that the shortfall is somewhat artificial as the nation saw a production surplus while the markets witnessed a supply shortage.
According to the Department of Agriculture Marketing, coarse grain rice, including the BR-11 and the Sorna, is being sold at Tk 52 to Tk 56 per kg. The price was Tk 50 to Tk 55 per kg just a month ago.
The price of medium-quality rice, including varieties like Paijam and BR-28, has risen to Tk 56-80 per kg, up from Tk 54-75 per kg two weeks ago. This marks an increase of Tk 2-5 per kg in just two weeks. Similarly, the price of fine rice, such as Miniket, Zirashil and Nazirshail, has climbed to Tk 65-75 per kg, compared to the previous Tk 62-72 per kg.
