Rice prices have increased by Tk 2 to Tk 4 per kilogram (kg) across the country over the past week.
Traders said that the prices of rice shot up due to recent floods while some suspect market manipulation by larger companies.
To bring stability in the market, the government has reduced import duties. The National Board of Revenue (NBR) has reduced import tariffs from 25 percent to 15 percent, regulatory duties from 25 percent to 5 percent, and waived 5 percent advance tax.
A rice trader at Babubazar Abdul Awal said, “We used to sell BR-28 rice at Tk 56 to Tk 57 per kg, but now we are selling at Tk 60. Similarly, Paijam rice was priced the same, but now it’s Tk 60 as well. No rice is being sold below Tk 60 in wholesale, except for coarse rice, which is priced at Tk 49 but was previously Tk 47. However, prices of Miniket and Nazirshail varieties have not increased in the market.”
Traders said big corporations were stockpiling rice and creating artificial crisis.
While visiting the Karwan Bazar rice market, it was found that BR-28 rice, which was sold at Tk 58 per kg last week, is now being sold at Tk 62. The price of Miniket rice has also increased by Tk 2 to Tk 74 per kg, while other varieties such as Paijam and Swarna have risen by Tk 2 to Tk 4.
However, traders are optimistic that prices will come down when new BR-28 rice will arrive in the market. Usually rice prices goes up slightly at the end of the season, but they will drop once new rice arrives in the market, said a trader based at Karwan Bazar.
Bangladesh Rice Mill Owners’ Association spokesperson Zainal Abedin acknowledged that price of BR-28 rice shot up by Tk 50 per sack (50-kg) in Kushtia’s wholesale market. Paddy varieties have seen an increase of Tk 60 per maund due to supply disruptions caused by floods earlier.
However, with the arrival of medium-quality rice like Swarna, Pajam, and hybrid varieties next month, prices may drop, he added.
