This is alarming that prices of almost all varieties of rice have skyrocketed in recent days, adding further woes to the middle and low income people who have already been in their wit's end because of price spike of many essential products during the on-going month of Ramadan.
In Dhaka, the narrow miniket rice that is mainly favoured by middle class people was seen selling at an exorbitant price. The costliest miniket rice Mozamel brand was priced at Tk 98 per kilogram.
Additionally, good quality Nazirshail rice was selling between Tk 84 and 85 a kg. Normal quality Nazirshail was available at Tk 75 while medium quality Nazirshail was sold at Tk 82. Prices of other varieties of rice have also gone up significantly.
This rice price hike noticed in the market despite huge imports of this staple into the country. Two ships carrying 35,000 tonnes of rice from India and Vietnam already arrived at Chittagong Port on Monday.
MV Tanais Dream carrying 22,500 tonnes of parboiled rice from India and MV Hong Linh 1 carrying 12,500 tonnes of parboiled rice from Vietnam reached the port.
Rice prices in Bangladesh have been climbing steadily for in recent times, driven largely by devastating floods in the north-eastern region last August. These floods significantly impacted Aman paddy cultivation, prompting government to approve large-scale rice imports by private entities to alleviate market pressure.
Several factors have hindered the importation process. A major issue is the high exchange rate of the US dollar, making rice imports less profitable. Importers face challenges in opening letters of credit, with fluctuating exchange rates further complicating their ability to finalize deals. As a result, small profit margins make it difficult for businesses to justify the financial risks involved in importing rice. Additionally, political instability following last year's government change has contributed to uncertainty, further deterring private importers from capitalizing on the government's import approvals.
While the private sector struggles, government initiatives have helped stabilize the situation. A strong Aman harvest, steady public procurement, and government-to-government (G2G) rice imports have contributed to maintaining food stocks. These measures have allowed for uninterrupted public food distribution programs, such as Open Market Sales (OMS) and the Trading Corporation of Bangladesh (TCB) truck sales, which benefit low-income families. Despite the rising prices, these interventions have ensured that rice remains accessible to the poorest segments of society.
While government's interventions have mitigated some of the effects of rising prices, the challenges faced by importers show complexity of managing food prices in an environment marked by economic and political uncertainty.
We are looking ahead that the government must consider policies that balance market forces, improve importation efficiency, and reduce risks posed by both natural disasters and economic instability.
