Rice prices going down as Boro harvesting begins
Rice market prices decline with Boro season harvest beginning, supply increasing. Despite slight drop, prices still higher than last year. Government procurement rates raised. Harvesting underway across regions, impacting market.
The prices in the rice market are seeing a downward trend as the Boro season paddy harvesting has started and the supply of paddy into the market has slightly increased.
According to millers and government data, rice prices have decreased by Tk 0.5 in the last few days. Mill owners are now trying to sale of previously produced rice even at a little less profit.
According to the state-run Trading Corporation of Bangladesh (TCB), the average price of fine rice was Tk 70.5 per kg last week. It reduced by Tk 0.5 per kg to Tk 70 per kg on Tuesday.
Besides, the price of rice which was sold at Tk 56.5 per kg several days ago dropped to Tk 56.
However, rice prices are still 4-9 per cent higher than the rate charged at the same time last year.
Mill owners said that the prices of paddy and rice are unlikely to return to last year’s level as production costs are higher this year. So the prices may remain high comparatively.
Meanwhile, the government fixed prices of paddy and rice have increased by Tk 1-2 per kg compared to last year.
Farhad Hossain, general secretary of Naogaon Rice Mill Owners Association, said that farmers have already started harvesting paddy all around the country including the haor areas of Sylhet. “New rice has also started coming to the markets in our region.
“Although paddy supply has increased by only 5 per cent, its impact can already be seen in the rice market. Traders are selling 50 kg bags of rice at Tk 20-25 less. If rice starts coming in at full force in the market, the price will decrease much more,” he said.
This season, the government plans to procure 5,00,000 tonnes of Boro paddy at Tk 32 per kg, 1.1 million tonnes of boiled rice at Tk 45 per kg, and 1,00,000 tonnes of Atap (parboiled) rice at Tk 44 per kg, which are higher rates than the previous season.
Last Boro season, the government collected paddy at Tk 30 per kg and boiled rice at Tk 44 per kg.
According to the Department of Agricultural Extension data, harvesting of the current season’s Boro paddy started in various regions, including Sunamganj, Habiganj, Bogura and Jashore, a week ago. Harvesting in various haors of Sylhet has already been completed as well.
Boro paddy accounts for more than half of the country’s annual rice production. It has been cultivated in 5 million hectares of land across the country this year and it is expected that 22.2 million tonnes of rice will be produced from there.
Jahangir Alam, owner of Purity Rice Agency in Thakurgaon, said that if the supply of paddy increases, the price of rice will decrease. “The price is stable at some places and somewhere it has decreased a bit.
However, if the price of rice falls too much, the farmers will suffer losses as production costs have increased compared to last year. The government fixed prices of paddy and rice need to be increased, he said.
Source Link: https://businesspostbd.com/national/rice-prices-going-down-as-boro-harvesting-begins
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