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Rice prices go up

Sohel Parvez
A low supply of paddy has led to the rise in rice price, especially the fine variety, traders and millers say.
“The prices of almost all types of rice have soared by Tk 1-2 a kilogram in the past two weeks, while fine rice, such as miniket, leads the way," said Md Main Uddin, owner of Haji Ismail & Sons, a rice wholesale depot at Karwan Bazar.
Trading Corporation of Bangladesh data showed that miniket or najirshail prices went up by 2.78 percent to fk 32-42 yesterday from Tk32-40 a kilogram a month ago.
Middle and upper middle-income groups are the main consumers of such fine quality rice.
The price of the relatively better quality paizam (pari) or lata has also increased by about 2 percent to Tk 25-27 a kg on Tuesday from Tk 25-26 a month earlier. The price of low quality or coarse rice also marked 2.38 percent rise, according to the state-run trading agency.
Staples price marks a rise at a time when its demand dropped because of low consumption during Ramadan.
“Rice prices have been ticking upwards for the last two weeks. There is no rationale behind the rise, as consumption dips,” said .Md Shahjahan, a rice retailer at Palashi kitchen market.
Shahjahan now sells a kilogram of medium quality miniket at Tk 32, up from Tk 30-31 two weeks ago. He also charges higher prices for nazirshail and other fine quality rice, such as paizam.
However, insiders said despite a fall in consumption, demand lingers at wholesale levels, as they wish to stock rice so (hat they can meet the increased post-Eid demand when production at almost all mills remains suspended.
The current relatively low cost of transportation of rice from the hubs to cities also prompts a section of wholesalers to buy rice in advance, they added.
Rice wholesalers and millers attributed the price hike to low supply from paddy growers and hoarders on speculation of low Aus output and delayed or possibly low Aman output.
Wholesalers at rice hubs, such as Naogaon district, said rise in the prices of super fine and fine quality paddy recorded the highest, while coarse rice price remains steady.
Fine quality miniket paddy now costs between Tk 680-700 a maund (37.324 kilograms) from Tk 560-580 a couple of months back, said Nirod Boron Saha, general secretary of Naogaon Dhanno-Chal Aratdar Babsaee Samity (association for paddy and rice wholesalers).
“A low supply from farmers pushed rice prices up,” Saha said.
Increased paddy prices, according to millers, contributes to a rise in the cost of production for millers, many of whom now fix the price by taking into account their procurement costs and margins.
The interest rate on working capital from banks also influences price fixing by millers, they added.
Abdul Matin, owner ofTitas Enterprise at Mohammadpur Krishi Market, said the price of rice increased by as low as Tk 30 each maund. “On Sunday, we sold miniket at Tk 1,100 a maund. Today, the price isTk 1,130 for the same amount."
“The rise in the price of rice can only be explained by the increase in paddy prices. There is no other reason for it," said Abdur Rashid, managing director of Rashid Agro-food Products Ltd, a leading fine rice maker.
sohel@thedailystar.net