Rice Price Remains Resilient Amid Global Economic Slowdown
Published on: November 4, 2023.
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Poorer sections of people in Bangladesh are being affected by the increasing price of rice, despite a global decrease in October. According to market surveys, the price of rice in the country has been rising, adding to consumer hardships caused by overall price increases.
In October 2023, the FAO All Rice Price Index did decrease by 2.0% from its level in September. However, it remained 24.0% higher than the previous year. The UN Food and Agriculture Organisation (FAO) reported that export quotations decreased across all major market segments in October, including in Asian markets.
While there were some notable deals, such as Indonesia’s Bulog continuing purchases and India granting an export quota for Indica white rice, overall, buyers refrained from making substantial purchases. The weak offshore demand in Thailand and the arrival of new crops in Pakistan also contributed to the decline in export quotations across Asia.
Importable rice prices ranged from $421 to $440 in India and $456 to $547 in Pakistan, Thailand, and Vietnam.
Contrary to the global market trend, the price of coarse and medium varieties of rice increased in Bangladesh during October. Coarse varieties were priced between Tk54-56 per kilogram, while medium varieties ranged from Tk62-65 per kilogram. Grocery stores reported that rice prices increased by 6.0-10%, although the Trading Corporation of Bangladesh (TCB) claimed it was only 2.0-2.5%.
Grocery store manager Farid Uddin stated that the price of medium-variety BRRI dhan-28 rice increased by Tk130-140 per 50 kg sack. Coarse hybrid and guti swarna rice also saw a price increase of Tk150-180 per sack.
While finer varieties of rice remained at their previous high prices, such as miniket, najirshail, and shampa katari, which sold for Tk72-85 per kilogram. Leading companies sold these varieties in packets for Tk78-95 per kilogram.
The Directorate-General of Food (DGoF) reported that they purchased more than 1.57 million tonnes of rice during the Boro season, almost reaching their target. Public warehouses currently hold 1.47 million tonnes of rice and 0.15 million tonnes of wheat, which indicates a sufficient stock.
SM Nazer Hossain, the vice-president of the Consumers Association of Bangladesh (CAB), expressed concern over the rising prices of rice in conjunction with high prices for various essential commodities. Hossain called on the government to expand its market operations for subsidised rice sales and to implement timely import policies to address market volatility.
In the first four months of the current financial year, both the government and private sectors have not yet imported any rice. However, the government has set a target to acquire over 15 million tonnes of rice from the ongoing Aman harvest.
