Global Rice News

Hoarding and Price Spiral: Food Minister Warns Rice Economy

DHAKA, Jan 30, 2024 (BSS) – Food Minister Sadhan Chandra Majumdar has issued a strong warning to corporate houses, millers, wholesalers, and retailers, accusing them of causing a price spiral in the rice market through hoarding. The minister emphasized that these entities will face jail time if they fail to correct their actions. Mere fines will not be enough to address the issue, as they must take responsibility for the rising prices of rice in the country. Speaking to BSS, Majumdar highlighted that the government has already launched an anti-hoarding campaign to identify and punish those responsible for illegal food storage. The newly enacted law on hoarding prescribes life imprisonment as the maximum punishment.

Nationwide Anti-Hoarding Campaign Gains Intensity

To enforce the anti-hoarding campaign, the government is preparing to increase efforts by engaging law enforcement agencies. The Food Department officials and staff have had their leaves canceled, including weekly holidays, to actively participate in the campaign. Minister Majumdar urged businessmen to abandon their greedy attitudes and prioritize fair practices over excessive profits. These comments come in response to Prime Minister Sheikh Hasina’s call to send hoarders and market manipulators to jail. The sudden price hike of rice and other essentials after the election was deemed “very abnormal” by the Prime Minister.

Rice Market Instability: A Market Perspective

Rice market analysts have observed visible instability for the past two weeks, with prices of most rice varieties escalating in the capital and other areas. Agro-economist Dr. Jahangir Alam, currently a director of Dhaka School of Economics, noted several factors that could contribute to the price hike. These factors include extreme weather conditions, disrupted rice supply systems, and lower-than-expected aman production due to heavy rainfall and weak cyclones. However, Dr. Alam believes that unscrupulous businesses, including millers and corporate houses, took advantage of the situation to generate extra profits through price fixing and market manipulation.

Government Initiatives to Counter Hoarding

As part of the anti-hoarding campaign, the National Consumers Right Protection directorate will ensure the display of wholesale and retail price charts at relevant outlets. Retailers must collect and keep cash memos of their purchases, and joint drives will be conducted against enlisted rice millers by the Food Department, local administration, and the National Consumers’ Right Protection directorate. The aim is to bring transparency to the market and hold accountable those responsible for price manipulation.

Persistent Rice Price Hike and Consumer Impact

Rice prices have been steadily increasing, particularly for miniket rice, which is popular among the ordinary middle class. The price for a sack of 50-kilogram miniket rice has risen from Taka 2850 to Taka 3400. The price of coarse rice varieties has also increased by Taka 250 to 350 per sack over the past month. This price surge has put a strain on consumers, as they now have to pay Taka 3600 to 3700 for the same amount of miniket rice. Consumers are feeling the effects of the price spiral, with many expressing frustration and financial difficulties.

Industry Perspectives on the Rice Market Situation

Market insiders, such as retailers and rice agency owners, have differing opinions on the reasons behind the price hike. While some attribute it to business monopolies of specific rice suppliers, others believe that small retailers are not responsible for the situation. The Director General of the Agricultural Extension Department, Badal Chandra Biswas, described the current rice market situation as an “anarchy” and called for cooperation from all parties to address it. The president of the Bangladesh Auto Husking Mill Owners Association, M Abdur Rashid, denied allegations of syndication, claiming that the industry operates amid fierce competition.

Conclusion

The government is committed to combatting hoarding and ensuring fair prices in the rice market. Through an intensified anti-hoarding campaign, increased transparency, and cooperation from all stakeholders, they aim to restore stability and protect consumers from price manipulation. It is crucial for all businesses and individuals involved in the rice economy to prioritize ethical practices and work towards a fair and sustainable market.

Source: BSS News