Rising Prices of Rice and Concerns of Paddy Supply in Bangladesh
on: April 14 ,2020 In: Developing News
The prices of rice have been gradually rising in Bangladesh for the past two months, amid the ongoing coronavirus lockdown. Experts said the government must act promptly to ensure smooth supply chain in order to prevent any possible crisis for the cereal in the coming weeks. They also expressed concern for a fall in the overall acreage of Boro crop this year.
According to the Trading Corporation of Bangladesh (TCB), coarse rice varieties were traded at Tk 48-50 a kg on 13th April, which is a 34-35 per cent hike within a month, while medium rice varieties were sold at Tk 56-58 a kg, finer quality at Tk 62-70 on Monday, an increase from Tk 50-55 and Tk 57-62, respectively, a month ago. The TCB has recorded a 12-16 per cent hike in medium and finer rice varieties during the past four weeks, resulting in current rice prices reaching a two-year high.
Agrarian Research Centre chairman Prof Abdul Hamid said rice output in Aman season set a record and prices of paddy were much lower than that of production costs. Prof Hamid called for bringing big millers and their allied traders, and local as well as city wholesalers under a strict watch to prevent illegal hoarding. The agronomist said global rice prices have increased to a seven-year high this month. "This phenomenal rise in prices should be taken into consideration.” He called for exports of all varieties of rice to be stopped for an indefinite period.
The government currently has a stock of 1.3 million tonnes of rice and has distributed 66,000 tonnes of rice for free between March 26 and April 10 to marginalized people countrywide during the lockdown.
Rice prices might fall in May if the supply of paddy remains unhindered during the period amid any lockdown. However, Boro acreage has declined to 4.7 million hectares from 4.824 million hectares last year, according to primary projections of the department of agriculture extension. Insiders have said Boro output target was set at 20.04 million tonnes for 2020 is unlikely to be achieved.
Source: thefinancialexpress.bd – 14th April 2020