Rice price dips as Aman season hits
Rice prices are on the decline after new Aman season crops began arriving in markets across the country. At the wholesale level, rice prices have dropped by Tk3 – Tk4 per kg. But the price drop in retail level is slightly lower, falling Tk 1 – Tk 2 per kg in the last two weeks.
Farmers however feel that the price of Aman season paddy has not increased as per their expectations. Although paddy price in the market usually goes higher than the government purchase price every year, this is not the case this season as the increase in rate is minimal.
Alamgir, manager of Mariam Store in Dhaka’s Maniknagar rice market, said, “So far, the Paijam – an Aman season variety of rice – has arrived in the market. So its price has dropped by Tk 2 per kg and is being sold at Tk 50 – Tk 52 per kg.
“But very soon some more varieties of new rice will arrive in the market. I am optimistic that the price of rice will decrease further.”
He added, “Since the increase in government sales through OMS, the price of all types of rice has decreased significantly. Rice, which was sold for Tk 74 per kg one or two month ago, is now available at Tk 68.”
According to Trading Corporation of Bangladesh (TCB) data, “Coarse rice, including the Swarna verity, is currently being sold for Tk 50 – Tk 52 per kg, medium quality rice, including Paijam and BR28 varieties, is selling for Tk 52 – Tk 58 per kg, and fine rice is selling for Tk 62 – Tk 75 per kg.
The data further show that the price of coarse rice has decreased by 0.57 per cent year-on-year, and the price of medium quality rice dropped by over 4 per cent. However, the price of fine rice has increased by 2 per cent.
Farhad Hossain, general secretary of Naogaon District Rice Mill Owner Group, said, “In our district, about 50 per cent of paddy has been harvested from the fields. However, rice is coming to the market at a slower pace. Despite that, the price of rice is falling steadily.
The price of rice produced from Guti and Swarna paddies, the main varieties of the Aman season, has decreased by Tk 3 – Tk 4 per kg.
Guti rice is now selling for Tk 42 – Tk 43 per kg in the wholesale market. Whereas rice produced from Swarna-5 variety of rice is selling for Tk 43 – Tk 44 per kg. It is expected that rice prices will decrease further in the coming days because this season saw improved paddy production.
The government is buying rice produced from Aman paddy through listed mill owners for Tk 43 per kg to conduct the OMS initiative.
According to the Department of Agricultural Extension (DAE), most of the rice demand in the country is fulfilled in the three seasons, including Boro, Aman and Aush.
The country had targeted 4.15 crore tonnes of paddy production last year. Out of this, Aman’s production target was 1.63 lakh tonnes but actual production was 1.70 lakh tonnes.
Farmers fear losses
Due to the increase in the supply of Aman season paddy in the market, the price of different varieties has also decreased slightly.
Guti, a new Aman season coarse variety of paddy, is being sold at Tk 27 – Tk 27.25 per kg wholesale in Naogaon paddy markets. Apart from this, Swarna variety of paddy is being sold at Tk 28 per kg.
The prices are almost the same in different parts of the country, including in Bogura. Two weeks ago, the prices of these varieties of paddy were Tk 2 – Tk 2.5 higher per kg compared to current prices.
However, the government purchase price of paddy has been set at Tk 30 per kg this Aman season. As a result, the farmers fear losses as the price is lower than the government price.
Market insiders say the cost of rice production has increased as a result of the government increasing the prices of agricultural inputs and fertilisers. Along with that, the cost of labor has also increased.
The market price of 1 maund of paddy is Tk 1,200. So many farmers are unable to cover the cost of production by selling at low prices and buying agricultural inputs and fertilizers at high prices.
So, it is getting difficult for a farmer to cover the living costs of his family, and rice production.
Government procurement
According to the Ministry of Food, the government has decided to buy a total of seven lakh tonnes of paddy and rice in the current Aman season. Of the figure, two lakh tonnes are paddy and five lakh tonnes are rice.
Four lakh tonnes of parboiled rice will be bought at the rate of Tk 44 per kg and one lakh ton of parboiled rice will be bought at the rate of Tk 43 per kg. And two lakh tons of paddy will be bought at the rate of Tk 30 per kg.
The price of paddy and rice has increased by Tk 2 per kg compared to the last Aman season. However, the target for paddy-rice collection in the current Aman season is one lakh tonnes less than the Aman collection target for the last year.
This collection campaign of Aman paddy and rice started on November 23 and will continue till February next year.
In the last five days, the government purchased 63 tonnes of Aman paddy from farmers through the app, and 3,440 tonnes of Aman rice from mill owners.
Source Link: https://businesspostbd.com/national/rice-price-dips-as-aman-season-hits
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