Low-income people suffer from spiralling price of rice

People of the low income bracket suffer the worst from the rise in price of essentials including rice. These spiralling prices do nothing but add insult to injury to those who lost their jobs during coronavirus.

According to Prothom Alo reports, the price of rice increased by Tk 2-3 a kg last week. Prices rose once before Eid-ul-Azha. Currently, the price of coarse rice is over Tk 50 a kg at the capital’s various markets but it was Tk 47-48 a kg just before Eid. Price of other varieties of rice also rose proportionately.

Rise in rice prices in the middle of the harvest season is not normal at all. According to the government, the country saw a bumper rice crop this year despite floods and cyclones. Yet, what is reason of this price hike?

There is the syndicate of traders, rice mill owners and hoarders, especially, those who want to earn dishonestly . They consider purchasing and stocking rice more profitable.

Not only has the price of rice increased but also the price of eggs, chicken, sugar and edible oil. Traders also raised the price of vegetables on the excuse of strict Covid-19 restrictions. The price of chicken fell slightly after Eid-ul-Azha but it’s on the rise now. The price of a dozen chicken eggs is now Tk 110 and it’s been rising for the past several days. Currently, broilers are being sold at Tk 110-115 a kg, sonalika (rooster) at Tk 240 a kg and layer chickens at Tk 250 a kg. Price of broiler increased by Tk 15 a kg from last week while price of sonalika dropped by Tk 10 a kg.

There is no alternative to an increased supply of rice in the market to prevent the spiralling prices. This can be done in two ways. Firstly, rice will have to be imported. The government has taken the positive step of reducing import tariff from 55 per cent to 25 per cent. Although the tariff was cut last year but it took three months to get the import clearance. Meantime, hoarders pocketed more profit.

The same should not happen this time. If rice is imported under both government and private sector initiative, healthy competition will prevail. Otherwise, attempts to take extra advantage will continue.

Secondly, open market sale of rice that is stocked in the government’s warehouses will have to be increased through Trading Corporation of Bangladesh (TCB) and directorate general of food. Long queues of people are seen in front of the trucks of the open market sale and the government should realise how much these people are suffering. Previously, only extremely poor people stood in the line. Now people of lower-middle income join the queue, putting aside any embarassment.

Aman harvest still is far away. In this case, there is no alternative to increase supply in the market through import of rice within the shortest possible time. If the government takes initiative to import rice, traders and hoarders are expected to release more rice in the market.

There is no logic in giving rice mill owners and hoarders an opportunity to profit more by halting import just to prove that we are self-sufficient in rice. If rice price increases, rice mill owners and hoarders pocket the entire profit. So, emphasis must be given to decrease production cost instead of increasing the price of rice to provide advantage to the farmers.