Rice prices have begun to rise in wholesale and retail markets after remaining stable for some time. Higher transport costs are starting to affect prices in various wholesale markets in the capital. A survey of retail markets found that rice prices had increased by BDT 2–4 per kg, depending on quality and location.

Wholesalers have attributed the price increase to higher transport costs following the rise in diesel prices in September, and retailers said rising wholesale prices had forced them to buy rice at higher rates. Inquiries at major rice trading hubs across the country suggest that higher paddy prices, alongside increased transport costs, have also contributed to the rise in rice prices.

During visits to Karwan Bazar, Badda and Notun Bazar in the capital yesterday, and conversations with traders and retailers, it was found that rice prices had increased. Depending on quality and market, coarse rice was selling for BDT 50–55 per kg, compared with BDT 48–53 before diesel prices rose last month, according to sellers. Medium-grain rice was selling for BDT 58–65 per kg, while fine rice (miniket) was priced at BDT 70–85 per kg.

Shafiqul Islam, manager of a wholesale shop in Karwan Bazar, told Bonik Barta yesterday, “Prices have risen slightly at mill level in Kushtia and various other parts of the country. In some places, prices have increased by as much as BDT 50 per sack. Truck fares have also gone up. These increases have affected the Dhaka market.”

Speaking to several other wholesalers, it is learnt that since diesel prices rose last month, truck fares for transporting rice have increased by around BDT 3,000 per truck from Dinajpur and BDT 2,000 from Chapainawabganj. Other costs have also risen. Traders have consequently had to increase rice prices by BDT 0.50–1 per kg.

At Notun Bazar, a consumer named Naushad Ali said, “I bought Boro rice for BDT 60 per kg at the beginning of September. Towards the end of the month, I bought it for BDT 62. Yesterday, I paid BDT 64. Shopkeepers say truck fares have increased. Paddy prices and rice prices at the trading hubs have also gone up. That’s why retail prices have risen.”

Inquiries in Khajanagar in Kushtia, one of the country’s major rice-producing centres, also confirmed that rice prices had increased. Over the past 20 days, prices of different grades of rice have fluctuated at Khajanagar’s wholesale market and in retail markets across the district. Although the district administration decided to reduce prices once, they rose again later.

A market review shows that on September 17, prices of different types of rice rose by BDT 2–3 per kg at Khajanagar’s wholesale market and by BDT 4–5 per kg at the retail level. To bring the situation under control, the Kushtia district administration held a meeting with mill owners in Khajanagar towards the end of September. The meeting decided to reduce mill-gate prices of all types of rice by BDT 1 per kg. Mill owners also assured the authorities that they would not raise prices for the following two weeks, but prices increased at both mill-gate and retail levels during that period.

According to mill-gate data from Khajanagar, the price of miniket rice rose from BDT 68 to BDT 70 per kg and then to BDT 72 within just four days. Over the same period, the retail price of miniket rice reached around BDT 74 per kg at Kushtia municipal market. Traders said prices of various types of rice in Kushtia’s retail markets rose by a further BDT 1–2 per kg yesterday, also affecting markets in the capital as it is a major rice-producing hub.

Citing rising paddy prices as another factor, traders said higher transport costs had increased both the purchase price of rice and the cost of bringing it to market, pushing up retail prices.

A review of Kushtia’s rice market from mid-last month to the current week shows that the price-reduction decision taken following administrative intervention failed to ensure lasting stability. Prices have risen at every level in the district, from mill-gate and wholesale to retail markets.

An owner of an automatic rice mill in Kushtia, who wished to remain anonymous, said, “Paddy prices, fuel and transport costs have all increased. When the costs of paddy, workers’ wages, electricity, packaging and transport rise, it becomes difficult to supply rice at the previous price. We have to adjust mill-gate prices in response to market conditions.”

Abdul Khaleque, managing director of Desh Agro Limited, said, “Rice passes through several stages before reaching retail markets from the mills. The recent rise in transport costs is affecting both wholesale and retail markets.”

He added: “Transport costs alone can’t explain the entire rise in rice prices. Paddy prices, production costs and supply conditions in the market are also important factors. To keep the market stable, the selling prices of millers, wholesalers and retailers need to be monitored regularly.”

AHM Shafiquzzaman, president of the Consumers Association of Bangladesh (CAB), believes unscrupulous traders are taking advantage of weak market monitoring.

He said: “Fuel prices have increased, leading to some rise in transport costs. But traders can’t use this as an excuse to raise product prices excessively. Market monitoring is weak in our country. The monitoring system must be strengthened to protect consumers’ interests.”

Rice prices have not increased at Naogaon’s wholesale trading hubs over the past month and a half, according to reports. Demand, however, has risen in recent days. Local wholesalers said demand for rice had remained low for a long time, leaving sales sluggish at the district’s wholesale markets and mill-gate level. Over the past week, however, demand has increased in Dhaka, Chattogram and other parts of the country, bringing renewed activity to their trading hubs.

During a visit to the Aratdar Patty area of Par-Naogaon in Naogaon town yesterday, it was found that there were more buyers and sellers at rice warehouses and mill gates. After remaining stable for a month and a half, wholesale prices currently stand at BDT 46–47 per kg for Swarna-5 rice, BDT 56–60 for Jirashail and BDT 68–72 for Kataribhog.

Farhad Hossain Chokdar, general secretary of the Naogaon District Rice Mill Owners’ Group, said, “For more than a month, there were almost no buyers at the wholesale markets and mill gates. Traders were also worried that the rice market could suffer a major collapse. Government warehouses have much larger rice stocks this year. This has helped keep the market stable.”

According to data from the Trading Corporation of Bangladesh (TCB), prices of medium-grade rice (Paijam and Atash) rose by BDT 3 per kg on September 24, with the minimum price reaching BDT 58. The minimum price was previously BDT 55. The agency has reported no further increase in medium-grade rice prices since then.

TCB data, meanwhile, show that from October 6, the minimum price of Nazirshail and Miniket rice fell from BDT 72 to BDT 70 per kg, while the maximum price remained unchanged at BDT 85. Before October 6, the prices of Nazirshail and Miniket ranged from BDT 72 to BDT 85 per kg, while coarse rice sold for BDT 50–55 per kg.

Market insiders say TCB’s price data show a gap of BDT 10–15 between the minimum and maximum prices listed for each product. Consequently, price fluctuations of BDT 2–4 in the market often do not appear in the agency’s data.

Rice prices are currently slightly lower than they were at this time last year. According to TCB, rice prices have fallen by an average of 5 percent year on year.

According to the Bangladesh Bureau of Statistics (BBS), inflation rose in September, edging up to 8.34 percent from 8.26 percent in August. Food inflation also increased slightly during the period.

State Minister for Food Md Abdul Bari told Bonik Barta, “There’s no reason for rice prices to rise now. I’m looking into the situation at the field level and informing the Ministry of Commerce and other relevant authorities. The government is taking a firm stance on this issue. There’s neither an opportunity nor any reason to raise rice prices.”

He added, “Mill owners want to supply rice to the government. The government won’t procure rice now, but we’ll resume procurement in a few days. We’ll buy rice from them then.”

Correspondents in Kushtia and Naogaon contributed to this report.