Yasir Wardad

Rising rice imports, aimed at fueling government stocks amid public procurement, have had hardly any impact on the rice market as prices of the essential item continue to be higher.

On the other hand, a scarcity of coarse varieties like ‘Guti Swarna’ in the city has been forcing the poor to buy medium varieties at increased rate.

Coarse rice is being sold for Tk 53-55 a kg at the district level and Tk 58-60 in  Dhaka and its adjoining areas, while medium rice costs Tk 55-65 a kg in district level and Tk 68-72 a kg in Dhaka, according to market sources. Finer varieties are retailing at Tk 75-94 a kg.

The government has been selling rice for Tk 30 a kg through OMS, but it takes hours to collect it, making it difficult to buy.

Lokman Hakim, a grocer at Katasur in Mohammadpur, says millers are supplying Miniket, Shampa Katari, BRRI Dhan 28, and Swarna-5. Prices have increased by 20-25 per cent in last one and a half months, he added.

Ashraf Siddiq, a Babu Bazar-based rice agency owner,  says millers have now become importers, which has given them ultimate power to dominate both domestic and imported rice markets. He suggests that traders who own auto rice mills should be prevented from importing rice to foster competition at the market. Siddiq says import has increased notably in recent weeks through Beanpole and Hili borders, but prices are still high.

According to the Directorate General of Food (DGoF), the government and the private importers have brought 0.236 million tonnes of rice from India, Myanmar and Pakistani in the last three months.

Director of DGoF (procurement) Md Maniruzzaman says apart from the ongoing Aman purchase, the government has a target to bring 1.0 million tonnes of rice, while the private sector has been allocated more than 1.0 million tonnes of rice.

He states that Bangladesh will import rice from India, Pakistan, Myanmar and other potential sources based on necessity. Contracts for 0.45 million tonnes of rice import has been finalised so far, he says.

According to him, public warehouses now have 1.26 million tonnes of grain of which rice comprises 0.9 million tonnes and it will gradually increase.

The directorate could purchase 0.38 million tonnes of rice under its Aman procurement drive, which is nearly 40 per cent of the target. The deadline for the procurement is March 15.

Mohammad Momtaj, proprietor of M/S Momtaj in Saidpur, Nilphamari, told the FE that his company has been granted permission to bring 5,000 tonnes of parboiled and white rice.

He says Guti Swarna was available in India a month ago, which costs Tk 49.5 a kg (FOB US $395-400 a tonne). “We are now bringing Swarna-5 and Ratna for Tk 53-54 and Tk 62.5-63 a kg respectively.”

“I’ve opened an L/C a day ago at $506 a tonne for Ratna rice,” says Momtaj, also a co-owner of Unique Auto Rice Mill in Saidpur, Nilphamari.

He says the August flood in 14 districts last year severely impacted the rice market, though production in the other parts of the country was satisfactory.

Paddy prices at the beginning of harvest rose up to Tk 1,150-1,200 a maund (40 kg) during this Aman harvesting season which is a record high. The price is now above Tk 1,350 a maund, he says.

Published Date: January 22, 2025