Global Rice News

Rice prices have started to drop after the government allowed private importers to bring in the staple from other countries.

Despite a bumper yield in the last Boro season, rice prices were going up putting burden on the people during an economic slowdown caused by the pandemic. The government then decided to import rice to put the brakes on the rising prices.

The prices are now showing a declining trend in the retail and wholesale markets.

Per kg of coarse rice which was Tk 44 in the wholesale market in Dinajpur last week was selling for Tk 38 in the same market on Thursday.

In the capital, the same variety of rice, however, was Tk 42 to Tk 44 per kg. It was Tk 48 a week ago.

The prices of fine rice also fell by Tk one or two per kg in the markets.

The government has so far permitted 349 private importers to bring in 15.92 lakh tonnes of rice, said food ministry sources, citing relevant documents.

Those importers will have to import and sell the rice in the market by September 25, they said.

“We are very hopeful that the prices will go down further. We will stop the import before harvesting of paddy in the Aman season so that local farmers don’t have to incur any loss,” Mosammat Nazmanara Khanum, secretary at the food ministry, told The Daily Star.

Farmers had a bumper yield in the Boro season this year. The Department of Agriculture Extension estimated that over two crore tonnes of paddy were harvested that season. Yet, rice prices did not go down, raising consumers’ eyebrows.

Before the Boro season, per kg of coarse rice shot up to Tk 52 as the government stock hit a record low.

Even though the government stock increased after 9.32 tonnes of Boro rice and 3.50 lakh tonnes of other varieties of rice were collected from the internal market, the price did not decrease.

As of August 24, the government had a total food stock of 17.25 lakh tonnes, including 14.09 lakh tonnes of rice. The rest was paddy, wheat, and flour.

Last year towards the end of August, the total food stock stood at 13.14 lakh tonnes, including 9.85 lakh tonnes of rice.

Anwar Hossain, owner of Barishal Rice Agency in the capital’s Mohammadpur, said coarse rice called Guti Swarna was selling for Tk 50 a kg at his shop. The price dropped to Tk 46 on Thursday.

Anisur Rahman Jewel, owner of Jewel Rice Traders in Dinajpur, said the lowest price for a 50 kg sack of rice is Tk 1,900 in the local market.

“It means a kg will cost Tk 38. The same rice was Tk 44 a kg a month ago,” he said.

The price of fine rice Nazrishail is Tk 54 to Tk 56 a kg in the wholesale market, he said, adding that the price of per kg of rice fell by Tk one or two.

Experts say as the government already has a moderate stock and the millers and traders also have a good stock, the private imports will reduce the rice prices further.

“We’ve already seen the impact of the rice import in the market. The price will further drop once the imported rice hits the market,” said Asaduzzaman, former research director of Bangladesh Institute of Development Studies (BIDS).

“We will permit other importers if one of the current importers fail to import rice even after getting permission,” said Mahbubur Rahman, senior assistant secretary of the food ministry.

If imported from India, per kg of rice will cost Tk 32.49 and if imported from Thailand, it will cost Tk 38.10, the ministry sources said.

M Shawkat Ali, former adviser to a caretaker government, said it is being seen that the price of rice in the international market is lower than that in the local market.

Importing rice will only benefit the traders, not the farmers. The government has to keep eyes on this issue as well.

“So it seems the production cost of rice in the country is higher than in other countries. So the government should provide subsidies to farmers. Otherwise, the interests of local farmers and consumers will not be protected,” he said.

Source/Credit: https://www.thedailystar.net/news/bangladesh/news/import-helps-push-the-rice-prices-down-2163176