The prices of rice increased further in the city markets last week, hitting people's pockets.
Prices of coarse and medium varieties went up by Tk 2.0-Tk 3.0 per kilogram in last seven days as seasonal coarse varieties including Swarna and BR-11 were sold at Tk 50-Tk 52 and medium varieties such as Brridhan-28 and Paijam at Tk 56-Tk 58 a kg in the city.
But the prices of common finer varieties remained static, maintaining the previous high of Tk 65-Tk 72 a kg.
The Trading Corporation of Bangladesh (TCB) recorded a 6.0-7.0 per cent hike in rice prices in a week and a 13-23 per cent in a month.
The current rice prices are 17-48 per cent higher than that of a year ago, said TCB.
The prices of rice have continued to rise in recent months despite the fact that it is the peak Aman crop harvesting season.
Traders said a possible fall in production due to six spells of flooding, fear of food shortage amid the pandemic and higher import duty on rice have been causing a surge in rice prices during this rice harvesting and primary trading period.
K M Layek Ali, secretary of Bangladesh Auto Major Husking Mills Owners Association, told the FE that paddy prices shot up to all-time high of Tk 1,150-Tk 1,350 a maund during this Aman harvesting season.
He said production has declined in many rice growing hubs in the northern, north-eastern and central parts of the country.
"Comparatively bigger farmers and seasonal traders are storing a large amount of paddy to earn profits and ensure their own food security."
Minimum cost of per kg coarse rice is now Tk 46, he added.
Chandan Kumar Kundu, a Nilphamari-based trader, said now there is a shortage of common varieties like Brridha-28, 29 and Najirshail in the market.
The government should ease import duty on rice to keep its prices stable, he said, adding that import of rice is almost zero due to above 60 per cent duty.
State-run Bangladesh Rice Research Institute (BRRI) in its latest research said rice production is set to decline by 1.53 million tonnes this Aman season mainly due to six spells of flooding the country witnessed during the period between June and October.
It also claimed that despite the fall, the country might have a surplus of 3.0 million tonnes until June 2021.
The government, however, is eyeing to import 1.0 million tonnes of rice from the global market after failing to procure it from the domestic market, according to the food ministry.
The government's procurement drive failed due to high prices of rice and paddy in the domestic market than that of its asking rate of Tk 36-Tk 37 a kg for rice and Tk 26 a kg for paddy, said insiders.
Food secretary Dr Mosammat Nazmanara Khanum told the FE that they would not raise asking prices for domestic procurement rather would depend on import at cheaper rates.
She said import duty for the private sector might not be reviewed now as the government is thinking that the country's rice stock is still now at comfortable level and easy import for private traders might also hurt farmers in the Boro harvesting season.
However, public food warehouses have now only 0.54 million tonnes of rice stock which was 0.9 million tonnes in the corresponding period of last year.
Value chain expert and agricultural economist Prof Golam Hafeez Kennedy said if production had declined in the Aman season, then the government should immediately ease import of rice both for private and government channels.
Rice prices, which remained almost static for three months, started increasing in the global market from December with the Bangladesh government's declaration for import, he added.
He suggested that import hurdles for the private sector should also be lessened for a certain period to reduce the consumers' sufferings.
Prices of potato also went up by Tk 5.0 a kg last week as stored ones sold at Tk 45-Tk 50 and newly harvested potato at Tk 50-Tk 55 a kg.
