Bangladesh: Govt cuts Aman rice buying prices despite rising farm costs
Bangladesh has reduced Aman-season procurement prices for parboiled and non-parboiled rice by Tk 1 per kg, while raising paddy prices marginally to Tk 35. Economists warn the revised rates may not cover rising cultivation costs, particularly higher diesel, fertiliser and irrigation expenses.
The government has lowered its procurement prices for both parboiled and non-parboiled rice for the current Aman season, even as farmers face higher costs for diesel, fertiliser and other agricultural inputs.
Although the paddy procurement price has been raised slightly, economists question whether the revised rates will adequately compensate farmers for rising production expenses.
The government has fixed the procurement price of parboiled rice at Tk 49 per kg and non-parboiled rice at Tk 48 per kg, down Tk 1.0 each from last year’s rates of Tk 50 and Tk 49, respectively.
The procurement price of paddy has been raised slightly to Tk 35 per kg from Tk 34 last year.
The Food Ministry has set a target of procuring 0.85 million tonnes. Of the total, it will directly purchase 0.3 million tonnes of paddy, 0.5 million tonnes of parboiled rice and 0.05 million tonnes of white (atap) rice.
The decision was taken at a meeting of the Food Planning and Monitoring Committee on Sunday. Food Minister Afroza Khanam disclosed the decision at a press briefing at the conference room of the Press Information Department at the Bangladesh Secretariat.
She said paddy procurement would begin on November 14, while rice collection would start on December 1. The procurement programme will continue until February 28 next year.
Last year, the government procured more than 1.0 million tonnes of rice during the Aman season.
The higher target for direct paddy procurement this year may provide some support to farmers, as purchases will be made directly from them, the minister said.
However, the marginal increase of Tk 1.0 per kg in the paddy procurement price, alongside the reduction in rice prices, has raised questions about whether the rates will adequately compensate farmers for rising production costs, market experts said.
“Rising production costs, particularly following increases in diesel prices and fertiliser expenses faced by farmers, are not reflected in the announcement,” said farm economist Prof Rashidul Hasan.
He questioned whether the government’s procurement rates adequately reflected the increased cost of cultivation, as farmers have been facing higher expenses for irrigation, fertilisers and other agricultural operations.
Diesel, a major input for irrigation, mechanised harvesting and transportation, has become more expensive.
The government raised its price to Tk 135 per litre from Tk 115, an increase of Tk 20, or around 17.4 per cent, effective September 21.
The price hike has increased the financial burden on farmers, particularly those relying on diesel-powered irrigation pumps for supplementary irrigation amid lower rainfall.
Fertiliser expenses have also been mounting, with farmers in different parts of the country reporting that they have had to pay above government-fixed prices amid supply shortages and irregularities in distribution.
In earlier FE reports, farmers complained of paying Tk 3.0 to Tk 12 more per kg than the official prices of different fertilisers.
A farmer, Abdus Sattar, who cultivated five bighas of land under the Aman crop, reported buying urea at Tk 1,500 per 50-kg bag against the government-fixed price of Tk 1,350.
He also paid Tk 1,400 for a 50-kg bag of diammonium phosphate (DAP) fertiliser, compared with the official price of Tk 1,050.
Another farmer, Akbar Ali of Dinajpur, said he had to buy urea at Tk 40 per kg when he failed to obtain it from authorised dealers, against the government-fixed price of Tk 27.
Agricultural economists, however, suggested that procurement prices should be determined by taking into account the actual cost of production, a reasonable profit for farmers and prevailing market conditions.
Aman production reached a record 17.3 million tonnes in FY26, while the government has set a target of 17.6 million tonnes for the current fiscal year.
Aman accounts for 38-39 per cent of the country’s rice demand.
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Source : Financial Express
