Boro harvest cools rice prices, but farmers worry over paddy rates

Highlights

• Retail rice prices fall by Tk2–5 per kg, wholesale prices fall by Tk4–7 per kg
• Paddy prices down by Tk200–250 per maund in some areas
• Govt to buy paddy at Tk36/kg, but farmers face hurdles
• Open market paddy prices lower than govt purchase rates

After months of high prices, rice is now becoming cheaper amid the ongoing Boro paddy harvest. However, farmers are concerned about low paddy prices and fear further declines as harvesting peaks.

Within a week, rice prices have dropped by Tk2–5 per kg at the retail level and Tk4-7 at mill and wholesale levels. Prices are expected to fall further as more Boro paddy enters the market, traders said.

In the capital's wholesale markets, BRRI-28 rice is selling at Tk58–60 per kg, Guti Shorna at Tk53–54, and Paijam at Tk55–57. A week ago, these varieties were priced Tk3–4 higher. Miniket rice, depending on quality, is now selling at Tk80–82 per kg, down from Tk88–90 earlier.

Rice prices have been rising since October and have not dropped even after the Aman harvest, but the Boro season appears to be reversing the trend.

Mohammad Shawon, a rice trader at Karwan Bazar, told TBS, "With the arrival of Boro rice, mill gate prices have come down. Over the past few days, fine rice prices have dropped by Tk4–7 per kg. Prices will fall further once Boro rice enters the market in full swing."

According to the Ministry of Agriculture, farmers have cultivated Boro paddy on 50.46 lakh hectares this year. The harvest has been completed on 12.13 lakh hectares, yielding 53.16 lakh tonnes of paddy. The total Boro season rice production may reach 2.26 crore tonnes nationwide.

Farhad Hossain Chakdar, general secretary of the Rice Mill Owners' Association in Naogaon — the country's largest rice trading hub — told TBS, "Prices of Zirashail and Kataribhog rice have dropped by Tk8–10 per kg, while coarse rice has fallen by Tk2–3 per kg. We are now buying paddy from farmers at Tk1,300–1,400 per maund."

Farmers, however, said paddy prices have dropped by Tk200–250 per maund compared to the beginning of the season. They said this is frustrating as production costs rise each year.

Why are farmers worried?

This Boro season, the government will purchase paddy at Tk36 per kg—Tk4 more than last year—equivalent to Tk1,440 per maund. In the open market, wet paddy is selling for Tk900–1,000 and dry paddy for Tk1,300–1,400 per maund.

Farmers said that in preparing paddy to meet government warehouse standards, they lose an additional 5–7 kg per maund. Moreover, selling to government warehouses involves transport costs, uncertainty over acceptance, and bureaucratic hurdles, such as requiring a bank account. As a result, many prefer to sell in the open market.

Anisul Haque Chowdhury, a farmer from Monua village in Shalla upazila of Sunamganj, said, "A farmer can sell just one and a half maunds of paddy to the government. After transporting such a small amount to the upazila centre, there is no profit left after paying for trucks, boats, and labour. Plus, there are many other complications. That is why I sold it in the open market."

Humayun Kabir, member secretary of the Paddy Procurement Committee and District Food Controller in Sunamganj, said there is no mechanism to buy paddy directly from farmers.

"We lack the transport system to collect and store paddy locally and bring it to the upazila food warehouses," he added.

In Naogaon's Sadar upazila, Shuvolata paddy is currently selling at Tk1,100 per maund, while Zirashail is priced at Tk1,250–1,300. Within just a few days, prices have dropped by Tk200–250 per maund.

Golam Mostafa, a farmer from Bhimpur village, said, "Even two days ago, prices were slightly higher, but they suddenly dropped. If prices stay this low, farmers will incur losses."

He noted that at the beginning of the harvest, Shuvolata paddy was selling for Tk1,300–1,350 per maund. "If the government does not intervene, farmers will be devastated."

He added that last year, no variety of paddy sold below Tk1,200 per maund at this time. "This year, production costs have gone up. Labour is hard to find. Even though the yield is good, these prices mean losses."

Md Jahangir Alam, a professor at the Department of Agribusiness and Marketing at Bangladesh Agricultural University, told TBS, "It is nothing new in Bangladesh that prices fall when farmers go to sell their produce, but rise once it is in the hands of traders. We see this pattern with almost every agricultural product. Even with good yields, farmers often incur losses."

"There is no easy solution to this. Farmers do not have storage facilities. If storage and loan facilities could be introduced, it would help address the issue, but that would require a substantial budget," he added.

Obaidur Rahman Mondol, director of the Department of Agricultural Extension, said, "The weather has been favourable this year, which has resulted in a good harvest. To ensure fair prices for farmers, the government will purchase paddy at Tk4 more per kg. However, some challenges still remain. Nevertheless, all stakeholders must continue working to ensure farmers receive a fair price."

[Our Bogura correspondent Khorshed Alam, Sylhet correspondent Debasish Debu, and Brahmanbaria correspondent Azizul Shonchay contributed to this story]