Govt must control rice market at once
The hike of rice prices in the capital city has become a matter of concern. According to Prothom Alo, low-priced coarse rice is now being sold at Tk 40 to 42 per kg in Dhaka's retail market. Medium quality rice is being sold at Tk 47 to 50 per kg. The price of fine miniket rice is Tk 55 to 57 per kg. Besides, Nazirshail is being sold at Tk 54 to 56 while premium quality Nazirshail at Tk 60 to 65 per kg.
Rice prices usually go down after the Boro season. But the price went up instead. According to the Trading Corporation of Bangladesh (TCB), the price of coarse rice is 22 per cent higher than the same period last year. Fine rice is being sold at 15 per cent and medium rice at 10 per cent higher prices. After Eid-ul-Azha, the price of rice has shot up by two to three taka per kg.
Directorate General of Food said there was no shortage of rice in the market. There is also enough stock in government warehouses. On the other hand, the Ministry of Agriculture said, this time the yield of the Boro rice has been good. It was harvested before the flood, too. If the yield of Aman is slightly lower due to the floods, it is not expected to affect the market before December.
The government has to keep in mind that once the price of a commodity goes up, it is difficult to bring it down. So the trend of increasing rice prices must be stopped now.
What is the reason for the increase in the price of rice in the market? According to various sources, the price of rice has gone up for couple of reasons. Rural economy has boosted due to the coronavirus outbreak. Many are buying paddy as they cannot invest anywhere else. They are not small or marginal farmers, rather wealthy and influential peasants, many of whom are affiliated with the ruling party.
There are laws against hoarding commodities. In order to enforce this law, it is also necessary to know how much rice the stockists are hoarding. The position of the agriculture and food ministries on rice imports is contradictory. According to the agriculture ministry, the market will fall and farmers will suffer if rice is imported. On the other hand, on 7 July, the food ministry issued a notification to the media about the import of rice. Usually the price of rice falls on the news of import that did not happen this time. This is not a good sign. The Food Management and Evaluation Committee is expected to play an active role in this regard.
The government has to keep in mind that once the price of a commodity goes up, it is difficult to bring it down. So the trend of increasing rice prices must be stopped now. The market for food products must be brought under control. The import duty on rice should be brought to a reasonable level. Traders who are close to the government have said that farmers would suffer if import duties were reduced further. The government has to deduce very carefully. Above all, it is necessary to have the exact information about the stock of rice and the demand.
The interests of both the farmer and the consumer must be seen. Just as not all farmers are poor, not all buyers are rich. A large portion of consumers are low income people. The 22 per cent rise in rice prices in one year reminds us of 2017. The government must step forward to control the rice market right away to avoid such a crisis to recur.