Irrational price hike of rice

Though there is no supply shortage, the prices of different categories of rice, the staple food of the Bangladeshis, have been rising since last month, leaving market watchers intrigued. Because, the overall yield of Aman, the second largest rice crop, despite the floods that damaged this crop on some 350,000 hectares of land mainly in the coastal districts this season (FY25), did not suffer much. If anything, the total production of Aman at 16.5 million tonnes in FY25 was close to that of the previous year's (at 16.6 million tonnes), according to the Bangladesh Bureau of Statistics (BBS). The higher yield of Aman should have a positive impact on its price. Again, the higher yield of Boro this season could have at least helped keep the price of the staple grain stable, if not brought it down.  Import of this grain by the government as well as the private sector also continued.  None of these positive factors could hold back the rice price from going up stubbornly to the dismay of not only the general consumers, but also of some rice traders.

Reportedly, the prices of the finer varieties of rice have registered a sharp increase in the city's kitchen markets in recent weeks. The prices of the medium and coarse varieties, too, have reportedly increased by Tk3.0 to Tk5.0 per kg. Interestingly, rice traders, both retailers and wholesalers, appeared clueless about the irrational price hike of this basic commodity. However, most of them would like to blame it on rice mill operators, or millers. The millers were reportedly hoarding rice to create artificial supply crisis. On their part, the millers are pointing the finger at the corporate rice traders for the unexplained volatility of the rice market.

Some local rice millers, however, the government's paddy procurement drive at a higher than market price is responsible for this. This view contradicts the facts on the ground since the government's boro purchase drive has hardly been a success. The unusual price hike remains shrouded in mystery. Even the Food Ministry could not solve the mystery of this food price surge through a recent probe it carried out. So, it has launched an anti-hoarding drive with the help of the local administration across the country. Let us hope that the drive would produce some results. However, the government cannot hope to effectively deal with this all important issue of unreasonable price hike of rice in an ad hoc manner. Failure on the part of the government to bring down the price in this peak harvest season risks emboldening the evil quarters at work to render the rice market further volatile. Given that over the last one month the price of coarse rice has gone up by nearly 10 per cent is indeed bad news for the majority of the population belonging to the low-income bracket. It tells on their tight family budget.

Already hit hard by ever-rising cost of living with no commensurate increase in income level, this section of the people has their back to the wall.  The government needs to address it through measures equal to cushioning the effect of the soaring price of rice on the average citizens.