Fuel price hike begins to impact rice market in Kushtia

The impact of rising fuel prices is gradually becoming visible in another key segment of Bangladesh’s food supply chain – the rice market. 
In Khajanagar of Kushtia, the country’s second-largest rice trading hub, higher transport costs are already creating new pressure on rice production and supply.
According to traders, long-distance truck fares have increased by around Tk1,500 to as much as Tk10,000 in some cases, directly adding to production costs.
A visit to the market on Saturday found that although prices of the newly harvested Boro paddy remain relatively low, mill owners and traders are facing higher expenses due to increased transport charges. 
In particular, bringing paddy from northern and northeastern regions to Kushtia mills now costs significantly more than before.
Earlier, transporting paddy by truck from Netrokona to Khajanagar cost around Tk22,000 to Tk23,000, but it has now risen to nearly Tk30,000. As a result, the cost of producing rice per maund has also increased.
Traders said production costs have gone up by around Tk3 to Tk4 per maund because of higher transport expenses. Earlier, rice could be produced at around Tk40 per maund, but now the cost has increased to Tk43 to Tk45.
Despite the arrival of new paddy in Khajanagar, the market remains cautious. Mill owners said prices of fine, medium and coarse rice are currently stable, but mounting cost pressures may affect prices in the coming months.
In the new paddy market, coarse varieties are selling between Tk850 and Tk1,050 per maund. 
Including transport and milling costs, the price at the mill gate reaches around Tk1,100. Old fine paddy is selling at Tk1,280 to Tk1,300, while medium and coarse varieties are trading between Tk1,100 and Tk1,200.
Overall, the rice market remains fairly stable. At the mill gate, fine rice sells for around Tk70 per kg, medium rice for Tk58 to Tk60, and coarse rice for Tk43 to Tk44.
Owners of husking mills said rising diesel, electricity and labour costs are increasing overall production expenses.
Zainal Abedin Prodhan, general secretary of the Kushtia Rice Mill Owners Association, said transporting one truck of rice to Dhaka now costs around Tk1,400 more than before, and the additional expense is ultimately passed on to consumers.
Millers also fear that when new paddy fully enters the market and electricity costs rise further, rice prices may face additional pressure over the next two to three months.
Abdul Khaleq, managing director of Desh Agro Farm Ltd, said they have not increased rice prices yet, but are under constant pressure as transport costs for both paddy and rice have risen.
Khajanagar sends around 150 to 200 trucks of rice daily to different parts of the country, while paddy also arrives from northern and southern regions. As a result, any increase in transport costs has a direct impact on the national rice supply system.
The Food Department has already intensified monitoring to prevent artificial shortages or excessive stockpiling in the market following the fuel price hike.
Professor Dr Selim Toha, former treasurer of Islamic University, Kushtia, said fuel price increases are no longer limited to transport costs and are now gradually affecting food markets as well.
He warned that if essential commodities like rice are affected, it will directly reduce consumers’ purchasing power and create new challenges for overall market stability.