Govt goes for bulk import as rice prices drop in international market.

ANM Mohibub Uz Zaman

When consumers are already grappled with soaring commodity prices, retail prices of all varieties of rice have jumped in kitchen markets, thanks to crop losses due to adverse weather conditions, including the recent floods.

According to Shahzahan Talukder of Mukta Rice Agency at Dhaka’s Karwan Bazar, the price of coarse rice rose by Tk200 per 50kg sack, while fine-quality rice increased by Tk100 per 50kg sack over the past 10 days.

He attributed the price surge to crop losses from floods and the lean period of the rice production season, noting that prices might decrease when newly harvested rice becomes available in about a month.

Over the last 7-10 days, the price of coarse rice surged from Tk48 per kg to Tk54 per kg, medium-quality rice from Tk58 per kg to Tk62 per kg, fine-quality miniket rice from Tk68-70 per kg to Tk70-72 per kg, and Najirshal rice from Tk66-70 per kg to Tk70-80 per kg, this trader stated.

Additionally, rice stocks decreased in government warehouses, as well as among rice mills, importers, wholesalers, and retailers over recent months.

The government’s rice stock dropped to 9 lakh tonnes as of 6 November, down from approximately 14 lakh tonnes in August, according to the Ministry of Food. The stock of food grains in the private sector – rice millers, importers, wholesalers, and retailers – stood at 5.96 lakh tonnes of rice and 6.21 lakh tonnes of paddy as of 30 September. In comparison, the stock was 6.73 lakh tonnes of rice and 7.89 lakh tonnes of paddy as of 15 June last, as per the ministry.

According to the Trading Corporation of Bangladesh (TCB), prices of fine quality rice increased by 2.78%, medium quality rice by 6.96%, and coarse rice by 1.90% over the past one month. Meanwhile, the government took extensive measures to stabilise the rice market, including importing rice from the international market.

To make rice more affordable and boost stocks, the government also removed import duties on rice entirely.

Md Masudul Hasan, secretary to the food ministry, told the Daily Sun that the government decided to import 5 lakh tonnes of rice, of which 3 lakh tonnes would be through government-to-government (G2G) deals, along with 8 lakh tonnes of wheat.

He mentioned that imported rice is expected to arrive within two to three weeks as import permits have already been issued to 102 private importers.

“Rice prices in the international market decreased, so private companies will import rice,” he said.

Export prices of rice in Thailand, Vietnam, India, and Pakistan dropped over the past two weeks.

Data from the government’s Food Planning and Monitoring Committee (FPMC) shows that the price of coarse rice in the country increased by over 56% in the past five years. In March 2020, the average price of coarse rice was Tk31.46, rising to Tk49.11 in 2024.

Published Date: November 8, 2024