Rice and sugar prices showed a hike last week increasing the sufferings of the consumers, especially the low-income segment of the society.
Prices of coarse and medium qualities of rice, which witnessed slight decline earlier this month with the start of import through the private channel, increased again by Tk 2.0-3.0 per kilogram (kg), pushing the staple up to its previous high, said traders.
Coarse rice was retailed at Tk 48-50 per kg and the medium variety at Tk 55-58 in the city market on Thursday, the last day of the week.
However, prices of common finer varieties were static at their previous high of Tk 65-72 a kg, according to the traders.
The state-owned Trading Corporation of Bangladesh (TCB) recorded a 3.0 -5.0 per cent rise in rice prices in a week while the current prices are 30-45 per cent higher than a year back.
Traders said slow pace of imports amid a rising trend in global prices is responsible for the high cost in the local markets.
They suggested reducing considerably the existing import duty on rice to arrest the spiralling price of the staple. "The import duty, which is 25 per cent at present, should be reviewed to get rice at below Tk 40 a kg," they said.
The government last month cut import duty on rice to 25 per cent from 62.5 per cent earlier. The government also announced that it would import 1.0 million tonnes of rice. It also permitted the private sector to import another 1.0 million tonnes from the international market.
Both the government and the private sector imported 52,000 tonnes of rice till January 25, 2021, according to the food ministry.
Oshim Kundu, a Dinajpur-based trader said, import cost of coarse rice like Swarna is now Tk 39-40 a kg. The rate is almost the same as that at local mills, he pointed out.
Mr Kundu mentioned that the retail price of the staple is now over Tk 41 a kg in the northern districts, the rice producing hub.
He viewed that the high import cost could hardly help keeping the local rice market stable.
"The 25 per cent import duty should be reviewed further so that retail prices may remain at Tk 40 a kg or less," he added.
However, the Bangladesh Rice Research Institute (BRRI)'s research showed that rice production declined by 1.5 million tonnes in Aman season amid floods.
The BRRI study also pointed out that government's failure in domestic procurement and timely import, low public storage and hoarding by millers caused the price hike in this financial year.
The institute suggested that procuring 2.5 million tonnes of rice in one harvesting season and making 1.25 million tonnes of buffer stock throughout the year would put a positive impact on the market.
Meanwhile, prices of sugar also rose in the last seven days. The sweetener price increased by Tk 3.0 a kg in the week as loose sugar was sold at Tk 70-72 and packed sugar at Tk 75-78 a kg on Thursday based on companies or brands.
Edible oil prices, however, remained static maintaining previous hike as loose soybean oil was sold at Tk 118-122 a litre and bottled one at Tk 135-140 a jar depending on brands.
