Bangladesh : Rice prices rise on flood damage, import fears
Bangladesh’s rice prices rose, especially fine varieties, due to higher paddy prices, flood damage to Aus crops and Aman seedbeds, and uncertainty over Indian imports. Economists warned lean-season speculation could raise prices further, despite adequate supplies and government food stocks.
Rice prices have climbed in Dhaka and Chattogram over the past week, particularly for fine varieties, as traders blame higher paddy prices, flood damage to Aus crops and Aman seedbeds, and uncertainty over rice imports from India.
Although traders said rice supply remains adequate for now, economists warn that crop losses and possible market speculation during the lean season could push prices higher unless authorities strengthen market monitoring.
In Dhaka’s kitchen markets, fine rice is selling at Tk 72 per kilogramme (kg), up from Tk 70 a week ago. Coarse rice, which is generally more affordable and widely consumed by lower-income households, has increased to Tk 50 per kg from Tk 48.
Mohammad Bacchu, a wholesaler and retailer at Karwan Bazar, said the wholesale price of a 50 kg sack of fine rice rose to Tk 3,200 from Tk 3,000 within a week. This means the price increased by about Tk 4 per kg.
“Millers are saying the increase is due to higher paddy prices. But there is no shortage of rice in the market yet, and supply and demand are balanced,” he said.
He added that coarse rice prices have remained unchanged so far, though they are showing an upward trend.
In Chattogram, fine rice prices have increased more sharply over the past month due to concerns over flood-related supply disruptions and uncertainty over Indian imports.
Traders said some Indian exporters have warned that their government may tighten export rules or restrict shipments of certain rice varieties. However, there has been no official announcement or indication from the Indian government regarding such measures.
At the retail level in Chattogram, fine rice is selling at Tk 95 per kg, up from Tk 85 a week ago.
Yasir Hossain, owner of Babul Store at CDA Market, said Nazirshail rice prices have increased by Tk 10 per kg over the past week to Tk 93-95 per kg, while coarse rice prices have remained unchanged.
Wholesale traders said fine rice prices have also increased by around Tk 10 per kg over the past month. “The market has become volatile due to flood-related supply concerns and uncertainty over Indian rice imports,” said Khatunganj trader Shanta Dasgupta.
Rice prices have also increased in other parts of the country. Data from the state-run Trading Corporation of Bangladesh (TCB) show fine rice prices rose 1.29 percent and coarse rice prices 1.85 percent over the past week.
Nirod Boron Saha, a rice miller and president of the Rice and Paddy Stockists and Wholesalers Association in Naogaon, a major rice trading hub in the north, said fine rice is now selling at Tk 2,700 to Tk 2,800 per maund (37.32 kg) in the local wholesale market, up by around Tk 50 per maund (Tk 1.34 per kg) over the past week.
“The market is now in the lean season, as nearly three months have passed since the harvest,” he said, adding that coarse rice prices have remained stable.
In Bogura, rice miller Abul Mansur Khan said fine rice prices have increased over the past 10 days, with a 25 kg sack now selling for Tk 1,850 to Tk 1,900, compared with Tk 1,700 to Tk 1,800 a week ago.
The increase is mainly due to higher paddy prices, he said.
Heavy rains have affected agricultural production in 43 districts, including Chattogram, Noakhali, Cumilla, Barishal, Khulna and Sylhet, according to the Department of Agricultural Extension.
More than five lakh farmers have suffered losses, while over 87,000 hectares of farmland — about 7 percent of the country’s 13 lakh hectares of cultivated land — have been damaged.
The affected crops include Aus paddy, Aman seedbeds, summer vegetables, ginger, turmeric and papaya. Of the damaged land, 52,767 hectares were under Aus paddy, 10,504 hectares under Aman seedbeds and 17,834 hectares under summer vegetables.
Agriculturists said the flood damage could tighten food supplies, particularly rice, and make it harder to control inflation.
Agricultural economist Jahangir Alam Khan told The Daily Star that around 15 percent of the Aus crop has been damaged, which could reduce rice production by about 4.5 lakh tonnes.
Although Aman seedbeds can be replanted, the process may still put pressure on supply and affect the market, he said.
“This is the lean season. Traders may try to take advantage of the situation by manipulating the market and pushing up prices,” he added.However, Jahangir said the situation could be managed through effective market monitoring, adding that the government has sufficient food stocks and can intervene if necessary.
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Source : The Daily Star
