Skyrocketing rice prices overshadow drop in vegetable prices

Highlights

• Rice prices have increased by Tk6-10 per kg in the past month
• Retailers attribute the price hike to increased costs from mill owners and are calling for stricter government oversight
• Government measures, including reduced import tariffs, have not yet effectively lowered rice prices
• Prices of several vegetables have decreased due to increased supply
• Government is increasing Open Market Sales (OMS) activities and TCB operations to support low-income groups

The price of rice has risen by Tk6-10 per kg over the past month, despite the peak Aman season, leaving consumers struggling to manage the increasing expenses.

While vegetable prices have dropped due to increased supply, the relief is being overshadowed by the sharp rise in rice prices.

Retailers attribute this surge to rate hikes by mill owners and are calling for stricter monitoring at the mill gates. Government measures, including reduced import tariffs, have yet to make an impact on market prices.

According to the Trading Corporation of Bangladesh (TCB), the price of fine rice has increased by 4% to Tk70-84, medium-grain rice by 2.46% to Tk60-65, and coarse rice by 6.67% to Tk54-58 in the last month. Over the past year, the average price of all rice varieties has risen by 15%.

Speaking to sellers at Kalyanpur, Hatirpool, Karwan Bazar, and Magbazar markets in Dhaka on Friday (10 January), it was found that fine-quality Miniket rice now costs Tk82 per kg, up from Tk72 three weeks ago.

Medium-grain rice prices have climbed by Tk5-6 per kg, with BR-28 rice now retailing at Tk64. Nazirshail rice is priced at Tk90-92 per kg.

"Mill owners claim high paddy prices are driving these increases. Retailers like us earn just Tk1-2 per kg profit," said Mohammad Khokon, a rice seller at Karwan Bazar. He stressed the need for stricter oversight of mill owners and corporate groups to stabilise rice prices.

Retailer Mohammad Manjur Islam noted that a 50-kg bag of Miniket rice, now costing Tk3,900, has increased by Tk400 in just one month.

While the Department of Agricultural Extension set a target of producing 1.75 lakh tonnes of rice for the Aman season, flooding in late 2024 has made achieving this goal unlikely.

Government warehouses currently hold 8.03 lakh tonnes of rice and 4.16 lakh tonnes of wheat, according to the food ministry.

Commerce Adviser Sk Bashir Uddin, addressing the issue during an event on Wednesday, acknowledged the hardship caused by rising prices but described the situation as temporary.

"If anyone hoards unfairly, they will be forced to release their stock," he said, adding that imports from Pakistan, Myanmar, and India would help stabilise the market.

To support low-income groups, the government is increasing the activities of Open Market Sales (OMS) and the TCB.

Vegetable prices provide relief

While rice prices remain high, the winter vegetable market has provided some respite. Increased supply has reduced prices for several items.

Potatoes are now selling for Tk35-40 per kg, down from Tk45-50 last week. Large cauliflowers and cabbages are priced at Tk20 each. Aubergine costs Tk40-50 per kg, radishes Tk20-30, different varieties of beans Tk30-50, and green chillies Tk60 per kg.

However, chicken and beef prices have remained stable. Sonali chicken is priced at Tk340 per kg, broiler chicken at Tk200-210, and beef at Tk750-780 per kg.

Buyers like Shah Alam expressed concerns over rising rice prices, stating, "Our income has not increased, but prices are rising. We have had to cut back on essentials like chicken, fish, and milk, relying more on vegetables to manage household expenses."