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Wholesalers cash in on artificial crisis

AVIK SANWAR RAHMAN
Rice hoarders and wholesalers are creating an artificial crisis in the market to increase prices though there is ample stock of rice in the country.
Wholesalers at New Market claimed that the price might rocket in 1-2 weeks as the crops in northeast and northern districts were destroyed by floodwaters.
But the Trading Corporation of Bangladesh (TCB) and Consumer Association of Bangladesh (CAB) do not think that a situation of rocketing prices of rice is necessary, unless it is done artificially by hoarders.
According to the TCB, the demand for rice a year is 2.26 crore tonnes and last year's production was 2.66 crore tonnes and another 10 lakhs tonnes had been imported.
There is 40 crore tonnes surplus production of rice this year. So why should there be a price hike for the lack of production," said TCB's chief officer Abdur Rob Shikder.
"It is not true that paddy fields were destroyed in the northern districts because of floods. The floods actually affected the western districts, and had no effect on production in northern districts. Some chatal owners could not dry paddy because of the heavy rains, but the quantity is minimal," said Shikder.
"But the cost of transportation could affect prices, but that too very minimal," he said.
According CAB prices of rice have gone up by one or two takas this year compared with last year's prices. In July 2003 prices of Paijam was Tk 16.5 per kg whereas in July this year it was Tk 18 and by August 9 the price rose to Tk 19 per kg.
The prices of Kataribhog remained the same this year while prices of Jhinga increased from Tk 19 to Tk 20. The price of Nazirshail and Miniket saw most changes increasing from Tk 19 to Tk 21 per kg this year, as most middle class
people consume these varieties.
According to the TCB market research sources the wholesale price of rice from Badamtoli and Mohammadpur Krishi market is within limits. The wholesale price of Nazirshail is Tk 18.25 per kg, ordinary rice is Tk 13.25 which is now sold between Tk 14.10 to 14.50 and medium rice is Tk 14.5 to 15.7 in the wholesale market and Tk 17 in the retail market.
The retail price of miniket is Tk 21. TCB sources said that miniket comes mainly from Kushtia and Nazirshail from Dinajpur and
Savar. The supply is ample at the Mohammadpur Krishhi Market and Badamtoli, said Shikder.
CAB sources said that this year Aman crops were been destroyed in the Sylhet area. A few crops were destroyed in the northern districts but the season is still on for cultivation. A major portion of Ropa Aman rice produced in Barisal was not affected by flood either, and IRRI was harvested before the flood. Dinajpur and Barisal are the main sources of rice supply in the country.
"Peasants have already started
to cultivate paddy. The flood will make a bumper harvest this year," said Shikder.
But the problem peasants' face is the crisis in raw paddy. Though the Prime Minister declared to arrange five kg of paddy per peasants and 25 kg fertiliser, CAB experts think this is not sufficient.
"Farmers need one to two maunds seeds depending on paddy field. Lack of supply may leave farmers from ripping the maximum fertility of soil offered by flood, said an official CAB.