Sunday, May 05, 2024
Despite the ban on rice exports in India, there has been no discernible impact on the country's local market, with rice prices remaining stable as before.
Trader said the country's rice market is expected to remain stable despite the ban on rice exports from India. This stability is attributed to an ample stock of rice held by both private companies and the government.
Additionally, the government's distribution of rice at subsidised rates further ensures a consistent supply, mitigating any potential price hikes until the next Eri season. As a result, there is a consensus that the rice market is unlikely to experience any significant fluctuations in the near future.
The Black Sea grain corridor, which was crucial for safely transporting grain from Ukrainian ports on the Black Sea last week, was discontinued as Russia chose not to renew it. As a consequence, there has been a notable surge in the prices of wheat and corn in the global market.
India, known as the world's leading rice exporter, imposed a ban on the export of all rice varieties except Basmati, attributing the decision to domestic price inflation concerns on July 20.
India's unexpected action has sparked fear and apprehension among consumers worldwide. Customers in various countries are rushing to stockpile rice, concerned that they might face shortages in the market soon.
According to a Bloomberg report, the Times of India said that a surge in viral videos on social media, showcasing customers from different countries, such as the United States, Canada, and Australia, lining up in lengthy queues outside grocery stores with shopping bags. These individuals are seen buying large quantities of rice, seemingly driven by the desire to secure as much supply as possible.
This panic has instilled fear among the customers in the country's market as well, over the past week,
Anwarul Alam, a buyer of Mugda Bazar in the capital, a relatively low-income area said, “Following India's export ban, there has been a noticeable uptick in the prices of essential commodities in the country's market. With India no longer exporting rice, there is a growing concern that the price of rice will surge within the domestic market too.”
Jasim Uddin, a resident of Gopibagh, expressed similar fears. He said the significance of rice as a staple in the daily diet. After the approval of rice imports, the market has been quite stable. “Now I am worried about what will happen to the country's rice market due to the export ban by India.”
Rice traders said that there has been no increase in the price of rice in the wholesale market, including Bububazar in the capital, which is renowned as one of the major wholesale rice markets, over the past week.
According to the data of the Bangladesh Rice Merchant Association, the price of rice remained static for the last two months.
As of Thursday, the prices of rice in Babubazaar were as follows: coarse rice ranged from Tk35 to Tk40 per kg, while Sorna, a type of coarse rice, was priced at Tk42 to Tk43 per kg. The variety rice, namely BR28 and BR29, were available at Tk46 to Tk53 per kg, whereas the Miniket variety was being sold at Tk55 to Tk60 per kg. Additionally, the fine variety rice, Nazirshail, was priced at Tk60 to Tk65 per kg.
Speaking to The Business Post, Kausar Azam, vice-president of the Bangladesh Rice Merchant Association said, “The country currently holds significant reserves of both imported rice and rice from the Eri season.
“Moreover, with the Amon season approaching, the harvest of Aush rice will further contribute to the stockpile. Based on our assessments, the available rice reserves are deemed ample, eliminating any concerns of potential shortages in rice supply.”
Besides, the price of rice has remained unaffected by India's rice export ban, and there is a strong likelihood that it will continue to remain stable in the future as long as the supply remains normal. Additionally, various initiatives by the government, such as expanding the OMS coverage and distributing rice through TCB using 1 core family cards across the country, further mitigate the possibility of any significant rice price hike in the market, he added.
On Thursday, in the rice markets of the capital, including Rampura, Maniknagar, and Mugda areas, the retail prices of rice were as follows: coarse variety rice, Sorna, was being sold at Tk44 to Tk45 per kg.
The medium varieties, BR28 and BR29, were priced at Tk55 to Tk56 per kg. Miniket rice was available at Tk60 to Tk68 per kg, and the fine variety, Nazirshail, was being sold at Tk70 to Tk80 per kg.
In addition to the aforementioned varieties, Kajol lata rice is being retailed at Tk60 to Tk62 per kg, while local Basmati rice is available at Tk80 per kg, and Paijam rice is being sold at Tk54 to Tk55 per kg.
Younus Rahman, a retailer at Mugda rice market in Dhaka said that despite India's export ban, there has been no notable increase in the price of rice in wholesale markets, resulting in retail prices remaining unchanged. These stable price levels have been consistent for the past two months. While there has been a slight fluctuation of Tk1 during this period, such variations are considered typical in the market.
Interestingly, even with the arrival of Indian rice, it hasn't garnered significant traction in the market due to concerns about its quality. Buyers in Bangladesh seem to prefer locally sourced rice over imported varieties. As a result, the impact of imported rice on the market has been relatively limited, he added.
