Lower rice prices within four days: Minister to traders, millers

Food Minister Sadhan Chandra Mazumder has issued a four-day ultimatum to rice traders and millers to lower prices by Tk6 per kg, citing the impact on low-income households.

After a meeting with mill owners and rice traders at the Food Department today, the minister said, "Take measures to reduce the price of rice within the next four days in the same way that the price has increased by Tk6 per kg in the last four days."

The minister added that if necessary, the government will import the key staple.

Expressing concern over the recent surge in rice prices during the Aman harvest season, Minister Sadhan Chandra Majumdar deemed this price hike unacceptable at the peak of the season. He warned rice traders of intensified market monitoring to identify and address illegal stockpiles, emphasising strict actions against violators whoever they may be.

The minister said import procedures are underway, with import duties potentially being lowered to zero. Now if required, then rice will be imported to stabilise rice prices.

According to sources in the meeting, mill owners and traders claimed that after the election, when a collective surge in paddy purchases ensued, it exerted pressure on the market, leading to a significant rise in paddy prices. Consequently, the escalating cost of paddy has had a direct impact on the price of rice.

Mill owners say medium-quality fine rice is selling at Tk47-47.5 per kg, while the government is buying it at Tk44 per kg. 

At that time, millers blamed the corporates for the rice price hike, saying they buy rice at a higher price than the market rate. Due to this, the price of rice increases, affecting the market.

Nirod Baran Saha, president of Naogaon Paddy-Rice Dealer and Business Association, said every year, the price of rice increases slightly at the end of the Aman season. Now, medium-quality Swarna-5 rice has increased by Tk2-3 per kg.

Nirod Saha also said the tendency to stockpile during the Aman season is high.

Opposing his view, Food Secretary Md Ismail Hossain said prices do not increase at this time every year and that they typically rise just before the boro harvest in March-April.

However, businessmen said when the price of rice increases by Tk2 at the mill level, many people take that opportunity and increase it by Tk3-4. This issue needs to be monitored.

Traders also demanded updated and accurate data on rice demand and production. 
ACI official Md Rubel Parvez says that corporates' market share in the rice business is less than 1% and that it is not possible to control the rice market with this market share.

"The government has information about who can control the rice market to what extent," the Food Secretary says.