Reasons behind high price of rice in Chattogram

The price of rice has surged in Chattogram, with wholesale traders charging Tk 150 to 200 in extra for each sack (50 kgs) of rice, and retailers increasing the price by Tk 4 to 7 per kilogram (kg).

Traders attributed the rising prices to the high cost for paddy and hoarding by some corporate companies. According to the millers and traders, the price of paddy has increased by at least Tk 100-150 to Tk 1200 per maund immediately after the 12th parliamentary election, leading to a rise in rice prices at the mills.

In the Pahartali and Chaktai areas, where there are two wholesale markets and some rice mills, the price of parboiled rice has risen by around Tk 200 per sack, while the Atap (non-boiled) variety went up by around Tk 150 per kg.

Omar Azam, general secretary of the rice traders association in Chattogram, blamed the high cost of paddy and hoarding by various corporate companies for the price rise and crisis in the rice market.

"The increased price of paddy has affected the rice price. Also, different corporate companies hoarded paddy, creating a crisis in the market. However, the rice price declined by Tk 1-2 per kg in the market," he said.

The Guti Swarna variety of rice is now priced at Tk 2,400 per sack and Tk 48 per kg, up from respectively Tk 2,200 and Tk 44-45 just a week ago. The Swarna-5 went up by Tk 250 to Tk 2,600 per sack and by Tk 5 to Tk 52 per kg.

Apart from that, the per kg price of Miniket (parboiled) is now Tk 54, Miniket (Atap) Tk 57, Paijam (Atap) Tk 52, Atash-1 and 2 Tk 49, and Jirashail Tk 69. These varieties registered price hikes from Tk 4 to 7 within a week.

The millers produce 64-68 kgs of rice from each 100 kgs of paddy, with the cost Tk 46 for each kg of coarse rice and Tk 56 for each kg of fine rice, excluding transportation and other associated expenses.

Farid Uddin Ahmed, president of the Chattogram rice mill owners association, said, "Paddy is the prime raw material for rice. If the price of paddy goes up, it affects the rice price. Besides, the cost of producing rice from paddy has risen recently."

Meanwhile, the district administration conducted a drive in the Chattogram markets on Monday, citing allegations against millers and traders for raising rice prices.

The authorities alleged that the millers and traders are supplying to the market slowly. Given the low supply against the high demand, an artificial crisis emerges there and eventually drives up the price.