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Rice turns cheap

Good stock, low global market bring down prices

Staff Correspondent
The prices of both coarse and fine rice varieties are decreasing in this non-harvest season when rice prices normally remain high.
Sufficient stock and supply of rice and paddy and a fall in food grain prices on the international market are the main reasons behind this unusual price fall, traders and wholesalers said.
The prices of coarse rice varieties, including guti, have been hover -ing between Ik 23 and Tk 25 per kg in last one month in the retail markets. The prices wereTk30-33 per kg at the same time last year.
The prices of fine rice varieties arc hovering between Tk 35 and 38 per kg, which was betweenTk 42 and 45 a kg last year.
The prices of coarse rice and medium varieties came down by Tk 2-3 per kg in last one week. Guti was selling at Tk 21 -22 per kg while parija atTk 25-27 and lata atTk 28-30 per kg yesterday.
The price of fine rice dropped by Tk 2-3 per kg in the retail markets in last week. Najirshail of different qualities was selling forTk 32-38 while minikate forTk 35-37.
Masud Rana, manager of Ekata Rice Agency at Mohammadpur Krishi Market, said the prices of all varieties of rice came down by Tk 100 per maund (37.32 kg) in the wholesale market in last one month when the prices usually increase by Tk 50-100 permaund.
"Huge supply, poor sale and price fall on the international market are the main reasons behind the price fall of rice at this time," he said.
The wholesale prices of coarse rice varieties at Badamtali, Babu bazar and Mohammadpur Krishi Market were Tk 19.70-19.90 while the price of minikate was Tk 33.10-34.00 yesterday,
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said market sources.
Nizam Uddin, general secretary of Badamtoli and Babubazar Rice Wholesalers Association, told The Daily Star that the traders started to sell rice and paddy in the markets from their stock as government announced to sell rice at a subsidised price.
Another leader of the association said the price of rice should be fixed on the basis of production cost otherwise the production will decrease in the future.
Abul Kashem, a retailer of Comilla Traders at city's Karwan Bazar, said retailers are incurring loss as the prices of rice are decreasing day by day.
He said the prices of fine rice came down by Tk 7-8 per kg in last one year while the prices of coarse rice dropped hy.Tk^^pfir^gvju uni
Citingexamples of fertiliser price fall, retailers of Karwan Bazar and other markets said the government's announcement to decrease rice price has also a psychological effect on the market.
Pias Costa, director general of the food directorate, told The Daily Star that about 12.3 lakh tonnes of rice and wheat are in the government godowns.
He also said about five lakh tonnes of rice and wheat of the total storage will be distributed for different government programmes, including vulnerable group feeding (VGF) and food rationing for the garment workers, by April. This also worked behind the present price fall of rice.