Hike in rice prices: Anti-hoarding drives yet to make any difference

Rice prices continue to rise despite the countrywide drives against illegal hoarding and overcharging.

The prices of both fine and coarse rice increased by Tk 4 per kg on June 1, the day the food ministry launched the drives, said the Trading Corporation of Bangladesh (TCB).

Consumers have witnessed the spike twice in one week as the prices of both varieties rose by Tk 2-6 on May 29.

The prices of other essentials too have increased over the last couple of days.

TCB documents show the prices of potato, flour, lentil and sugar have increased by Tk 2-5 per kg in the retail and wholesale markets.

In Mirpur and Karwan Bazar, our correspondent found many wholesalers have been slowing down procurement from millers.

Helal Hossain, manager of Mimi Rice Agency in Mirpur, said he used to bring one truck of rice every day from mills in Sherpur, Dinajpur and Chapainawabganj but due to the drive, he has brought down the volume of procurement.

"I've not bought rice for the last three days … If the mobile court finds illegal stockpiles, I may be punished."

Mobile courts yesterday levied a fine of Tk 10.16 lakh on rice millers and traders of five divisions -- Dhaka, Khulna, Chattogram, Rangpur and Rajshahi -- for violations such as illegal stockpiling and overcharging.

The courts did not find any such irregularities in Sylhet, Barishal and Mymensingh, according to the food ministry's public relations office.

A mobile court led by Nahidur Rahman, Savar upazila's Assistant Commissioner (Land), fined Noor Traders Tk 10,000 and Al-Amin Traders Tk 20,000 for overcharging.

Another court shut down Northern Agro-Industry Company Limited in Rangpur Sadar upazila's Uttar Baniapara village for illegally stockpiling 800 tonnes of paddy and fined it Tk 2 lakh.

The drive was led by Aminul Islam, assistant commissioner of Rangpur DC office, on Wednesday.

Reiterating the need to strengthen the drive against illegal hoarders, Food Minister Sadhan Chandra Majumder has directed all local administrations to increase monitoring and stop big corporations from procuring rice and paddy if they do not have their own mills.

At a recent virtual views-exchange meeting on "market monitoring and Boro rice procurement" with the divisional and deputy commissioners of Chattogram and Sylhet, he asked them to ensure no one is involved in the rice business without a license.

"Prices of rice and wheat are decreasing in neighbouring countries. We won't let anyone try to destabilise the market," he said, adding that the government will open up the import of rice after tax reduction.

RICE PRODUCTION OVERVIEW

The agriculture ministry estimated Aush production at 3.48 million tonnes, Aman at 15.05 million and Boro at 20.95 for the 2021-22 fiscal.

However, Bangladesh Bureau of Statistics data showed that Aush production was 3 million tonnes -- 13.8 percent less than the target set by the Ministry of Agriculture.

Claiming that Bangladesh is not facing any crisis of grains, Agriculture Minister Dr Muhammad Abdur Razzaque said, "Although excessive rains and early floods caused some production losses, there will still be sufficient yield as we had additional fields for Boro cultivation this year."

Speaking at the inauguration of Pabna's litchi fair, he said as the prices of food grains have increased in the international market due to the pandemic and the ongoing Russia-Ukraine war, local businessmen are taking the opportunity to make an extra profit.

"The government has already started raids against big hoarders across the country to prevent the artificial crisis."

Earlier, Benojir Alam, director general at the Department of Agricultural Extension, said there was no shortage of rice in the market because farmers cultivated Boro on 49.63 lakh hectares, which is 90,000 hectares more than last year.

Yesterday, the Federation of Bangladesh Chambers of Commerce and Industry held a views-exchange meeting on the import stock, supply and prices of essentials at its Motijheel office.

Showing his support to the drive, FBCCI President Jashim Uddin said, "You just cannot increase prices whenever you get an opportunity."

On behalf of the rice traders, Amitabh Chakraborty, advisor of City Group, said, "Only 1 percent of the traders are involved in illegal hoarding. All traders will not take responsibility for it. There is enough rice supply and so, there will be no problem."

Ismail Hossain, chairman of Boishakhi Automatic Rice Mills Ltd in Bogura, said that millers are now selling the rice they had procured much earlier. He claimed they did not get their rice on time due to a delay in delivery.

(Our Dinajpur, Pabna and Savar Correspondent contributed to the report.)