Rice prices rise in Bangladesh amid 'supply shortage'

Retail rice prices in Dhaka have risen by Tk2 to Tk3 per kilogramme due to alleged supply shortage, despite steady wholesale market prices over the past five days.

During visits to various kitchen markets, it was found that retailers have raised prices by Tk2 to Tk3 per kg, citing reduced supply from wholesalers. Despite no increase in wholesale prices, some retailers have opted to sell rice at higher prices.

Fazlu Mia, owner of Bhai Bhai Rice Agency in Mogbazar Kacha Bazar, told UNB that he received only 100 sacks of rice from Naogaon, instead of the usual 150 sacks. As a result, he felt compelled to increase his rice prices by Tk2 to Tk3 per kilogram, attributing it to the supply shortage.

In the wholesale market, the price of various types of rice varies depending on the variety.

Miniket rice is priced between Tk75-79 per kg, while BR-28 and BR-29 range from Tk60-64 per kg. Nazirshail is sold at Tk76-84 per kg, Swarna at Tk52-54 per kg, Pajama at Tk57-58 per kg, and Basmati at Tk94-98 per kg. Aromatic rice, such as Chinigura, is priced at Tk110-115 per kg.

At the retail level, prices are slightly higher. Miniket rice costs Tk84-85 per kg, BR-28 and BR-29 are priced at Tk65-68 per kg, Swarna at Tk56-58 per kg, Nazirshail at Tk80-85 per kg, and Basmati at Tk95-100 per kg. The price of aromatic rice, specifically Chinigura, reaches Tk140 per kg in the retail market.

Rojab Ali, a wholesaler, stated, "We are selling rice at the same prices as before. The prices have not increased yet." However, he acknowledged that the supply of rice is currently low, and the market may remain unstable until new rice enters the market. He also pointed out that imported rice has not yet arrived, making it unlikely for prices to decrease in the near future.

Ali emphasised that the rice market's instability would persist until the syndicate controlling the market is broken.

To address the rising rice prices, the government had previously withdrawn import and regulatory duties on rice in two phases, effective from 20 October and 1 November. The decision aimed to increase supply and ensure that rice prices remained affordable for the common people.

The National Board of Revenue (NBR) had expected these measures to reduce rice prices by at least Tk 9.60 per kilogram.

According to the Bangladesh Bureau of Statistics (BBS), the average daily per capita rice consumption in the country is 328.9 grams.

In urban areas, the daily consumption per capita is slightly lower at 284.7 grams. This consumption pattern requires a total of 2.6 crore tons of rice annually for the country's population of 170 million.

Bangladesh produced over 4 crore tonnes of rice in the fiscal year 2023-2024. As of 19 December, the food ministry reported that various food warehouses across the country held stocks of 744,000 tonnes of rice, 448,000 tonnes of wheat, and over 4,000 tonnes of paddy.