After an increase in July-August, rice prices are rising again. Within a week, prices of various types of rice have increased by Tk 2 to 4 per kg.
Some traders say the price is rising due to floods, while others blame a syndicate for manipulating the market. They are advising raids on warehouses.
In response, the government has taken the initiative to increase rice imports in the private sector, including reducing import duties, reports bdnews24.com.
Abdul Jalil, a seller at Antu-Sentu Rice Agency in Babubazar, Dhaka’s major wholesale market, told bdnews24.com that prices for all rice varieties have risen by around Tk 2 to Tk 2.5 per kg in the past week, while the price of BRRI 28 rice has gone up by Tk 4.
"We used to sell BRRI 28 rice at Tk 56-57, but now it's Tk 60. Pajam rice was similarly priced, but it's now also Tk 60. Basically, no rice is being sold wholesale for less than Tk 60. Only coarse rice is priced at Tk 49, but it used to be Tk 47. However, prices of Miniket or Nazirshail haven’t increased much because there’s less demand as people have less money."
Miniket rice continues to sell for Tk 73-75 per kg, and Nazirshail for Tk 75-88 per kg, according to the wholesaler Jalil.
Jalal Uddin, a seller at Master Enterprise in the Krishi Market, echoed similar views. He was selling BRRI 28 and Pajam rice at Tk 64 per kg.
When asked about the price hike, Jalal said, “Although floods have had some impact, the main influence is coming from large companies. At the last moment, they are stockpiling rice to create a false shortage.”
He suggested that the government conduct raids on rice warehouses like it did with eggs.
“We need to question why thousands of sacks are being stored in warehouses. Large groups with mills should be investigated,” he continued.
“Also, many farmers have reduced rice sales due to the floods, and rice collectors are also holding back. Everyone is showing a shortage, and that's why prices are rising.”
Mohammad Sayem, a seller at Dhaka Rice Agency in Karwan Bazar, said that just five days ago, he had bought BRRI 28 rice at Tk 56 per kg and sold it at Tk 58. Now, he's buying it at Tk 60 per kg and selling it at Tk 62.
Sayem hopes that prices will drop once the new BRRI 28 rice arrives next month.
He added that last week, he sold Miniket at Tk 70-72 per kg, but now it is Tk 72-74. Pajam rice, which was Tk 58, is now Tk 60, while Swarna, which used to be Tk 48-50, is now Tk 50-52.
Shafiqul Alam, a seller at Janapriya Rice Agency in Karwan Bazar, said that a week ago, he sold BRRI 28 rice at Tk 57 per kg, but now it’s Tk 60.
“The price will increase further due to natural disasters. The floods in Cumilla have devastated everything, and the floods in the northern region have added to the problem.”
He remarked that a Tk 1-2 increase per kg at the end of the season is ‘normal’ but added: “Prices will continue to rise until new rice arrives.”
Imon Noskar, who runs a restaurant on Minto Road, purchased seven sacks of Miniket rice from Janapriya Rice Agency for Tk 3,500 each. As he buys rice every other day, the seller gave him stock at a lower price.
Imon said, “The seller told me that if a new shipment arrives within two days, the price could go up by Tk 100 per sack.”
While bdnews24.com was speaking to Imon, Mohammad Sayem of Dhaka Rice Agency joined in.
“I bought sacks for Tk 3,500 each today, and that’s the price you’re getting it at. In two days, you won’t find it at this price again,” he said.
The rise in wholesale prices has also affected the retail market.
Salman, a seller at Imran Rice in Kolmilota market in the Bijoy Sarani area, is selling coarse Swarna rice at Tk 60 per kg, BRRI 28 at Tk 65 per kg, Miniket at Tk 72, and Nazirshail at Tk 75-80, depending on quality.
He said, “The rice season is ending, so prices are rising slightly. Once the new rice comes, prices will drop again. Right now, prices for all rice types are rising, with BRRI 28 seeing the highest increase of about Tk 5. Other varieties have increased by around Tk 2.”
When asked about allegations of hoarding, Joynal Abedin, publicity secretary of the Bangladesh Rice Mill Owners Association, said: “In our Kushtia market, the price of BRRI 28 rice has gone up by Tk 50 per sack, and all other varieties have increased by Tk 1 per kg. The price of paddy has increased by about Tk 60 per maund.”
He added, “I can’t say how much more is being charged in Dhaka, but nothing has happened in Kushtia to justify a Tk 4 per kg price hike in Dhaka.”
He also said that paddy sales had almost stopped due to the floods earlier, which affected the market. The market will normalise in the next 20-25 days.
Director General of the Directorate of National Consumer Rights Protection Mohammad Alim Akhter Khan said, “We are always working to reduce prices. If anyone raises prices unreasonably, we will take action.”
Meanwhile, to keep rice prices affordable, the National Board of Revenue, or NBR, reduced both import duty and regulatory duty on Sunday and also withdrew advance tax.
The import duty on rice has been reduced from 25 percent to 15 percent, and the regulatory duty from 25 percent to 5 percent. The 5 percent advance tax has also been entirely withdrawn.
According to the NBR, these reductions will lower the cost of rice imports by Tk 14.40 per kg.
