Thursday, 9 February, 2023
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‘Greedy millers, retailers behind rice price hike’

‘Greedy millers, retailers behind rice price hike’

Excessive profits made by rice millers and retailers are the reason for the hike in rice price despite a surplus production in the country.

A field survey conducted by Bangladesh Rice Research Institute (BRRI) to identify rice price hikes in Bangladesh said this on Saturday.

Rice millers acquired the highest profit and rice retailers were in the second position as profit gainers. Other stakeholders of the rice value chain -- farmers, faria, paddy aratdar and rice aratdar -- are making normal profits.

Value chain analysis of bold grain rice shows that rice millers make a profit of Tk 8.08 after selling per kg rice, retailers make a profit of Tk 2.11, paddy aratdars make a profit of Tk 1.72, farmers make a profit of Tk 1.12, faria makes a profit of Tk 0.50 and rice aratdars make a profit of Tk 0.40.

Rice millers make a profit of Tk 9.91 after selling per kg medium grain rice, rice retailers make a profit of Tk 2.80, farmers make profit of Tk 2.99, paddy aratdars make a profit of Tk 1.77, rice aratdars make profit of Tk 0.45 and faria makes a profit of Tk 0.42.

Rice millers make a profit of Tk 13.67 after selling per kg fine grain rice, rice retailers make a profit of Tk 4.89, farmers make profit of Tk 4.94, paddy aratdars make a profit of Tk 2.02, rice aratdars make profit of Tk 0.68 and faria makes a profit of Tk 0.53, according to the study.

Rice millers and retailers are gaining supernormal profit defined as extra profit after selling fine grain rice. The study also found that rice price in Bangladesh is always higher than international price. It increased more since the initiation of COVID-19 and then does not get down although the price reduced internationally.

BRRI Director General Shahjahan Kabir said the study of BRRI found that rice millers and retailers are gaining extra profits.

“Production costs for the farmers have also increased slightly and the price of paddy has increased at the farmers’ level. Besides, some millers and traders said that corporate groups are trying to control the market by entering the rice market,” he said.

Farmers are getting better prices since the initiation of COVID-19 which reflects in their profitability from Boro 2020 to onwards.

On a cash-cost basis, the benefit-cost-ratio of farmers was 1.46, 1.78, and 1.43 in Aus, Aman and Boro seasons respectively in 2021-22.

In FY 2021-2022, Bangladesh produced 42 lakh tonnes of surplus rice. The total rice production was 397 lakh tonnes against the demand of 355 lakh tonnes in FY 2021-2022.