Rice prices in Bangladesh are still on the rise despite record local yields and significant imports, making life tougher for average consumers. In the retail markets of Dhaka, coarse rice is priced between Tk 58-62 per kg, medium quality between Tk 65-72, and fine rice between Tk 75-98, reflecting an increase of Tk 2-3 over the past two weeks, as reported by grocers. Even though the government has reduced import duties on rice to nearly zero for this fiscal year, prices have not decreased.
The Food Ministry states that rice imports have totaled 0.35 million tonnes in the last one and a half months, with around 85 percent coming from the private sector. The Department of Agricultural Extension (DAE) projects that Boro season production will reach 22 million tonnes, marking a record high.
Md Moniruzzaman, the procurement director at the Directorate General of Food, stated that the government achieved a historic procurement of 1.7 million tonnes of rice during the Boro season from May to August thanks to a robust harvest. He noted that public warehouses currently contain approximately 1.6 million tonnes of rice. The government intends to import a total of 0.5 million tonnes for its strategic reserves, with 50,000 tonnes having already been delivered. Procurement for the Aman season is set to commence in November, alleviating any immediate supply issues. However, global rice prices present a contrasting scenario. As per the UN Food and Agriculture Organisation’s (FAO) All Rice Price Index, global rice prices decreased by 0.5 per cent in September and are currently 24.2 per cent lower than they were a year ago, marking the lowest level in five years.
Indica rice, a staple in South Asia, experienced the largest monthly decrease with a 0.9 percent reduction. In September, the prices for importable rice in India, Vietnam, and Pakistan ranged from US$364 to $390 per tonne. A rice importer from Dinajpur mentioned that the prices at domestic milling centers have remained relatively stable, with the price difference between imported and locally milled coarse and medium rice being only Tk 1.0-2.0 per kg. “Ongoing imports have contributed to maintaining market stability. Without these imports, prices could have escalated even more,” he remarked. The Vice President of the Consumers Association of Bangladesh (CAB), SM Nazer Hossain, points out that consumers are not reaping the benefits despite robust local production, significant imports, and government procurement efforts.
“Millers hold a dominant position in both domestic and foreign rice markets, and they also provide supplies to government storage facilities. Insufficient market oversight enables them to set prices at will.”
Value chain specialist Prof Rashidul Hasan mentioned that although rice prices experienced a slight decrease in June, they climbed back up during the peak Boro harvesting season.
“The government has not succeeded in creating an efficient system for procuring rice or paddy directly from farmers. In the absence of such a system, the rice market will perpetually be under the influence of millers,” he stated.
