Rice price rise raises concern

The prices of rice, the key kitchen item, has gradually been rising for the past two months, heightening concern among consumers during the ongoing coronavirus lockdown.

Experts said the government must act promptly to ensure smooth supply chain in order to prevent any possible crisis for the cereal in the coming weeks.

They also expressed concern for a fall in the overall acreage of Boro crop this year.

Rice prices have witnessed a gradual hike in the past two months amid the lockdown since March 26.

Coarse rice varieties were traded at Tk 48-50 a kg on April 13, a 34-35 per cent hike in a month, according to the Trading Corporation of Bangladesh (TCB).

Rice prices started to rise abnormally from the third week of March with the beginning of panic buying by city-dwellers fearing any possible lockdown.

The upswing continued as prices of the staple witnessed a gradual hike in the following weeks, according to traders.

Medium rice varieties sold at Tk 56-58 a kg, finer quality at Tk 62-70 on Monday, which was Tk 50-55 and Tk 57-62 respectively a month ago.

The TCB has recorded a 12-16 per cent hike in medium and finer rice varieties in the past four weeks.

The current rice prices have reached a two-year high now, according to the state entity.

Badamtoli-based trader Faridul Alam said prices of rice rose by Tk 300-350 per 50kg sack in a month at mill gates in Kushtia, Naogaon, Pabna, Rangpur and Dinajpur.

"Our agents hinted us that rice prices may rise further for a hike in paddy prices," he told the FE.

Mr Alam said fine-quality miniket rice is now bought at Tk 2,950-3,000 per 50kg sack which was the maximum Tk 2,700 in the second week of March.

Contacted, Abdul Mazid Bablu, a rice trader at Khajanagar in Kushtia, said paddy prices have swelled by 35-40 per cent in the past one month and a half.

Paddy prices might surge further as there is still one month left to get seasonal Boro paddy, he added.

Mr Bablu said Aman season coarse paddy has been selling at Tk 900-920 a maund for the past three weeks in Kushtia and its adjacent districts.

Rice prices might fall in May if the supply of paddy remains unhindered during the period amid any lockdown.

Agrarian Research Centre chairman Prof Abdul Hamid said rice output in Aman season set a record and prices of paddy were much lower than that of production costs.

Aman production saw a record 14.5-million tonnes, so there was no reason for such a tectonic rise in the staple prices for now, he observed.

Prof Hamid called for bringing big millers and their allied traders, and local as well as city wholesalers under a strict watch to prevent illegal hoarding.

The government should fulfil its procurement target of 1.8 million tonnes in time to continue its social safety-net programmes, he suggested.

The agronomist said global rice prices have increased to a seven-year high this month. "This phenomenal rise in prices should be taken into consideration."

Exports of all varieties of rice should be stopped for an indefinite period, he said emphatically.

Anwar Faruqe, former agriculture secretary, said the overall Boro acreage might have declined this year which should be taken into account seriously.

Import policy should be flexible for rice to tackle any food shortages during this pandemic season, he stated.

But it should be ensured that farmers get profits for their crop to maintain this current production growth, Mr Faruqe maintained.

He suggested that the government expand its safety net and increase its procurement volume.

Irregularities in rice distribution should be controlled strictly so that the poor can get food.

Mr Faruqe said the movement of farm labour should be managed properly and transportation of farm produce be smoother for the next two months.

According to food directorate, the government has a stock of 1.3 million tonnes of rice now.

The government has distributed 66,000 tonnes of rice for free between March 26 and April 10 to marginal people countrywide during this lockdown, officials concerned said.

However, Boro acreage has declined to 4.7 million hectares which were 4.824 million hectares last year, according to primary projections of the department of agriculture extension.

Insiders said Boro output target was set at 20.04 million tonnes for 2020 which is unlikely to achieve.

Daily edible rice prices globally have reached $440-500 (Thai, India, Vietnam) a tonne in April which was $380-440 depending on varieties in March, according to different commodity web portals.

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