Sunday, 29 January, 2023

Rice market remain unstable despite surplus production

Commodity market remains static

Rice market remain unstable despite surplus production

The skyrocketing price of rice in the country after a surplus harvest in Aman season worries people, particularly the low and fixed-income groups.

All varieties of rice are selling at much higher prices than that of the same period of the last month and last year, market analysts said.

Higher production costs and hoarding of rice by different stakeholders are responsible for the price hike of rice after a good harvest in the country, they said.

Dr Jahangir Alam Khan, agro economist and researcher, told the Daily Sun that the nexus between different business syndicate is responsible for the hike of rice price despite a surplus production.

“There is surplus rice in country. Millers and traders are the suppliers of rice in the country. They are increasing the rice price after making a syndicate,” he said.

“The government has already identified the reason and traders are responsible for the price hike of rice. But, the government is yet to take action or interfere in it. Lack of proper management is responsible for this,” he said, adding that it will be difficult to control the rice market if the government does not interfere.

The price of fine rice increased by 1.49 percent in a month and was sold at Tk 58-78 per kg, and coarse rice increased by 2.02 percent in a month and was sold at Tk 46-55 per kg on Thursday in the capital, according to the Trading Corporation of Bangladesh (TCB).

Fine rice prices increased by 7.98 percent while medium quality rice prices increased by 5.66 percent and coarse rice prices increased by 6.32 percent in a year, according to the TCB.

A projection of the Bangladesh Rice Research Institute (BRRI) said country’s rice production will reach 39.7 million tonnes by June next year.

There will be 3 million tonnes of Aus rice while 16.3 million tonnes of Aman rice, and the prediction of Boro production is 20.4 million tonnes.

A total of 25.13 million tonnes of rice will be needed to feed 17 crore people at 405 grams per person every day, according to the BRRI projection.

Around 10.37 million tonnes of rice will be needed for other consumption like livestock feed, said the projection.

The Ministry of Agriculture set a target of 1.61 crore tonnes of Aman rice from 59 lakh hectares of land in Aman season but the production may hit 1.63 crore tonnes, according to BRRI.

Ninety percent of Aman harvesting has completed till December 22 while total harvesting will be completed by December, said Badal Chandra Biswas, Additional Director (Monitoring and Implementation) at Field Service Wing of Department of Agriculture Extension (DAE).

The price of most of the essentials remained static in the capital’s kitchen markets on Friday after witnessing a soaring trend.

While visiting different markets, this correspondent found that the prices of vegetables, chicken, eggs and fish declined slightly.

The government reduced bottled and loose soybean oil prices by Tk 5 per litre on December 15, scheduled to be effective from December 18.

But, soybean oil was seen sold at previous high prices. Bottled soybean oil has reduced to Tk 187 from Tk 192 per litre, loose soybean oil price declined to Tk 167 from Tk 172 per litre and palm oil price declined to Tk 117 from Tk 121 per litre, according to a commerce ministry release.

Traders said they are yet to get the new consignment of soybean oil from the companies.

Sugar was sold at the previous high price of Tk 115 to Tk120 per kg while the government fixed the price at Tk 108 per kg.

Shariful Islam, a consumer at Mirpur-6 Kitchen Market, said, “When the price of a product increases, it increases immediately in the market. But it does not come into effect, when it reduces.  There is no one to see it.”

Sonali chicken was sold at Tk 240-250 per kg while layer chicken was sold at Tk 250-260 per kg and broiler was sold at Tk 150 per kg. The prices of all types of chicken declined a month earlier and it was sold at the same price.

Farm egg was sold at Tk 120 per dozen and the local chicken egg was sold at Tk 180-190 per dozen. The beef was sold at Tk 680-700 per kg and mutton was sold at Tk 850-900 per kg.  The price of winter vegetables remained stable for the last three weeks at the market.

Cabbage and cauliflower were sold at Tk 30-40 per piece, cucumber was sold at Tk 60 per kg, brinjal was sold at Tk 60-90 per kg and tomato was sold at Tk 100-120 per kg.

The price of beans was Tk 40-50 per kg, bitter gourd was Tk 60-80 per kg, gourd was Tk 50-60 per piece, pointed gourd was Tk 60 per kg, okra was Tk 60 per kg, sponge gourd was Tk 60 per kg, snake gourd was Tk 60 per kg, green chilli was Tk 70-80 per kg and green papaya was Tk 30-40 per kg.