Staff Correspondent, The Daily Star, 13 May 2008

 

The price of different varieties of rice has risen in the wholesale markets in the capital over the last two days since the government’s rice procurement programme began across the country.

Some wholesalers are saying that the price hike is a result of farmer holding back stock to avoid selling at lower prices to the government while the procurement continues.

The price of rice rose by Tk 20 to Tk 40 per maund (37.32kg) in the wholesale market in the city, selling now from Tk 1,100 to Tk 1,400 per maund compared to prices between Tk 1,070 to Tk 1,360 only two days ago.

This increase in price has impacted the retail markets where sellers are raising the price of rice by Tk .50 per kg.

Retailers are saying that the price hike will continue for the next few days.

Wholesalers are however saying that the price of coarse rice has been more affected by the government procurement than the finer rice varieties.

Mohammad Nizamuddin, secretary general of Badamtoli-Babubazar Rice Wholesale Association, while talking to The Daily Star confirmed the price hike across the country over the last two days.

He said that because farmers are only selling to the government at present, they are unable to meet the demand in the market, in price rise in the open market. The situation would improve within a few weeks, he added.

Wholesalers are however saying that because the government procurement is at a fixed price, farmers are holding back their stock to sell it at a better price in the open market, once the government procurement is over. That has caused the shortage in supply, they say.

Director General of the Food Directorate Pias Costa told The Daily Star that the rice procurement of the government started in mid April and the food directorate’s warehouses is are already being stocked up for the past few days.

Meanwhile in the markets, price of Miniket has leapt to Tk 1,380 to Tk 1,390 from Tk 1350 to Tk 1360 per maund while IRRI rose to Tk 1,100 to Tk 1,120 from Tk 1,070 to Tk 1,080 two days ago.

A maund of chapal is selling at Tk 1,160 to Tk 1,170, up from Tk 1,120 to Tk 1,130.