Imports cool coarse rice market, fine varieties' prices steady

Highlights

• Wholesale coarse rice prices drop Tk2-3 per kg in a week
• Retail prices, including fine varieties, remain largely elevated
• Prices in Chattogram drop Tk3-4 per kg for coarse varieties
• In Naogaon, a rice-producing hub, prices of Swarna, Katari and Miniket fall Tk1-3 per kg
• 305,000 tonnes already imported this fiscal year

The impact of rice imports alongside the announcement of subsidised open market sales in 64 districts have begun to stabilise the market, with prices, which surged unusually at the end of last month, now trending downward at the wholesale level. 

Traders said most coarse rice prices have eased by Tk2-3 per kg in the past week, with further price drops expected in the next one to two weeks. However, at the retail level, rice is still widely being sold at previous elevated prices. 

Karwan Bazar warehouses were seen selling Guti Swarna at Tk49-50 per kg, BRRI-28 at Tk58-60, BRRI-29 at Tk60-61 and Paijam at Tk54. Traders said these prices have decreased by Tk2-3 per kg compared to last week. Additionally, Miniket was selling at Tk80-82, Nazirshail at Tk78-82, and Kataribhog at Tk90-94. 

At the retail level, Swarna was still being sold at Tk54-58, BRRI-28 at Tk62-64 and BRRI-29 at Tk64-66, with some shops offering a decrease of Tk1-2 per kg. 

Karwan Bazar rice seller Md Shaon told The Business Standard that in the last 5-7 days, coarse rice prices have dropped by Tk50-150 per sack (50 kg), while the price of fine rice remains unchanged. 

In Chattogram, rice prices have decreased by Tk3-4 per kg at both wholesale and retail levels. At various markets, including Kazir Dewri, Bahaddarhat and Chawk Bazar, Swarna is being sold at Tk55-56 per kg, Paijam at Tk57-60 and BRRI at Tk58-60. A week ago, Swarna was sold at Tk58-60, Paijam at Tk60-62, and BRRI at Tk62-64. 

However, the price of Miniket and Jeerashail remains unchanged at Tk75-80, while Katari Nazir is still sold at Tk76-80, and Basmati at Tk92-95. 

According to the Trading Corporation of Bangladesh (TCB), the price of coarse rice has decreased by Tk2 per kg to Tk54-56, medium-quality rice by Tk2 to Tk58-65, while the price of fine rice remains stable at Tk70-75.

Md Idrish, a rice trader at Dewan Bazar, Chattogram, said rice prices are falling, with some coarse varieties, including BRRI and Paijam, dropping by Tk180-200 per sack from last week's mill prices. As a result, prices are decreasing in both wholesale and retail markets, although some rice varieties remain stable. 

Despite a good Aman harvest, rice prices rose by Tk4-10 per kg towards the end of December, prompting the government to focus on imports to address the situation.

Sheikh Selim, a wholesaler and owner of RM Enterprise in Chaktai, Chattogram, said rice prices have not decreased since 2020, following the pandemic. 

Although the government has taken steps to control prices, low imports have limited their impact. However, this time, the effect of rice imports is being felt in the market, and Selim believes that continued imports could lead to further price reductions.

To ensure food security and stabilise the market, the government has decided to import 10 lakh tonnes of rice this fiscal year from countries such as Myanmar, Thailand, India and Pakistan. So far, 305,000 tonnes have been imported, with two ships carrying 16,400 tonnes of rice from India arriving at Mongla port on Saturday.

Abdus Sobhan, assistant controller of the Directorate General of Food (Movement and Storage) at Mongla, said the unloading process of the two ships from India would begin after collecting rice samples and conducting physical tests.

Chattogram Rice Mill Owners Association President Farid Uddin Ahmed said in previous years, traders refrained from importing rice due to pressure from mill owners and large traders, despite having permission. 

However, this time, both the government and private sectors are importing sufficient rice, and if this trend continues, rice prices will further decrease.

A significant portion of the country's rice and paddy demand comes from Naogaon, where mills currently have a high supply of Swarna, Katari, and Miniket rice. Mill owners reported a decrease of Tk1-3 in these rice varieties in recent days. 

Farhad Hossain Chakdar, general secretary of the Naogaon Rice Mill Owners' Association, said rice prices are falling due to increased imports. 

Although production was affected by the monsoon, causing prices to rise, the increase in imports is now driving prices down, with further decreases expected.

With inputs from TBS Bogura correspondent.