Stop rice price manipulation

Rice is the staple food of the people of Bangladesh. They consume it three times a day. It is such an essential food that if a Bengali eats pilau for one meal, they crave plain rice for the next. However, with the ever-increasing price of rice, it seems that eating rice will soon become impossible. Recently, we learned that even during the peak season for Aman rice, prices are still rising. According to reports published in the media, almost all types of rice have increased in price over the last month. The price of medium-grade rice is now 60 to 65 taka per kilogram, which was 50 to 55 taka last year. The more premium varieties like Miniket and Nazirshail are priced between 70 and 84 taka per kilogram, up from 60 to 75 taka a year ago.

Low-income families typically buy coarse or medium-quality rice. The middle and upper-middle classes consume finer rice. However, even the low-income groups are now forced to buy rice at over 60 taka per kilogram. When a family’s daily income is only three to four hundred taka, how can they afford rice at 60 taka per kilogram? It’s becoming evident that they are spending almost half of their income just on rice. According to the Trading Corporation of Bangladesh (TCB), the price of coarse rice in 2020 was only 35 to 40 taka per kilogram. In its attempt to control rice prices, the previous Awami League government raised the prices of fertilizers, fuel, and electricity.

In this situation, low-income people are facing severe uncertainty. The prices of essential commodities were already high, and now the soaring rice prices have added insult to injury. If even the middle class is struggling to cope with these rising costs, what will the low-income people do? Many are surviving by scraping by, eating less or going without. According to a recent report by the World Bank, 71 per cent of people in Bangladesh are now facing food insecurity. A report from the Bangladesh Bureau of Statistics (BBS) also states that one in every five people in Bangladesh is suffering from food insecurity.

But the question remains, why is rice price increasing during the peak season of Aman? The rice market for the middle class is primarily controlled by large mills, which release rice under their own brand names. These mills have always blamed the high price of paddy and increased production costs for the rise in rice prices. The owners of auto rice mills have recently stated that the price increase this year is due to the significant pressure the government applied last year to prevent price hikes. The effects of that pressure are now being felt. This year, nearly all paddy has been bought up by a few large corporate firms, and regular mill owners are unable to access it. As a result, the price of paddy is 10 taka more per kilogram than last year.

Analysis shows that rice prices rise much more than the price of paddy. According to data from the Department of Agricultural Marketing, the wholesale price of medium Boro paddy in 2020 was around 27 taka per kilogram. By 2023, it increased to just over 30 taka per kilogram, a rise of just over 12 per cent. In contrast, during the same period, the price of fine rice in retail markets rose by 42 per cent. Market analysts suggest that large corporations have entered the rice market, and they have no shortage of capital. With the ability to stockpile large amounts of paddy, they have the power to control the market. They can easily secure loans from banks. If foreign rice imports were brought in to compete with them, it might be possible to regulate the market. However, the ousted Awami League government seemed more focused on flaunted raids rather than implementing effective market strategies to control these large entities.

Due to the failure to take timely action, it has now become difficult to import rice from abroad. According to the World Bank, the price of rice per ton in Thailand and Vietnam is around 500 dollars, which is about 100 dollars less than last year; however, Bangladeshi traders are not showing any interest in importing rice at this price either. The reason is that the exchange rate of the dollar is now 123 taka. An official from a government agency involved in market management told the media that when large mill owners see that there is no opportunity to import rice from abroad, they increase prices at will. He explained that by keeping rice imports banned and imposing high duties, large traders have been given the chance to hike prices. There is a need to analyze their costs, selling prices, and stock levels. But does the food ministry show any interest in this?

Meanwhile, on January 17, a ship carrying 22,000 tons of rice from Myanmar docked at the port of Chattogram. While unloading the rice, Ali Imam Majumdar, the food adviser of the interim government, told the media that the government will import 800,000 tons of rice this year to ensure food security. He expressed hope that the rice import process would be successful. Rice is being imported from India and Myanmar, and the import of 50,000 tons from Pakistan is in the final stages. Efforts are being made to find additional sources for rice imports, with discussions ongoing with Vietnam.

Whenever commodity prices rise, the government promises various solutions and implements some measures, but still, the prices do not fall. No permanent solution is provided; instead, temporary measures are taken. The manipulation of rice prices continues in Bangladesh. We want the manipulation of rice prices to stop. The people of our country are dependent on rice. The manipulation of rice prices is nothing but playing with their lives. This game must end.