Businesses call for increasing paddy/rice stock limits

The government has been conducting a drive for the last few days to look into reasons for an increase in paddy and rice prices during the peak season while businesses have called for increasing stock limits of the grains.

Currently, a wholesaler can store 300 tonnes of rice for 30 days.

During raids, the food ministry, the consumer rights protection directorate and district administrations have fined many businessmen, sealed off institutions and filed cases against them after finding rice stocks beyond the limit.

While applauding the crackdown on illegal stocks, business people are in favour of increasing the stock limits several times instead of taking action under the 11-year-old rules.

They have made such a demand in the context of the government's recent operation to keep the market under control.

Also, businessmen had earlier called for increasing the stock limits while a monitoring team from the Federation of Bangladesh Chambers and Commerce and Industry (FBCCI) had recently held a views-exchange meeting with them to keep commodity prices stable.

Lokman Hossain, general secretary of the Karwan Bazar Kitchen Market Business Association, said at the time that the law on stocks was too old. He demanded to increase the limit fixed in the law.

Basically, action is being taken if more stock of paddy or rice is found than the limit set in the Control of Essential Commodities Act of 1956.

An order issued by the food and disaster management ministries in 2011 specified the stock limits for traders and rice mill owners.

According to the law, a wholesaler can store a maximum of 300 tonnes of paddy or rice at the business level. At the retail level, the maximum limit is 15 tonnes.

A case has been filed against Square Food and Beverage Company for illegal stocks. ACI Company has been fined Tk80,000. The operation is also going on at district and divisional levels including the capital.

In addition, some large corporate groups do not have licences for paddy or rice business but, with stocks, they have created a crisis in the market, the sources said.

Food Minister Sadhan Chandra Majumder on Thursday directed the administration to increase surveillance to ensure that big corporate houses do not get involved in the rice business if they do not have their own mills.

Demand to increase paddy and rice stock limit

Terming the limit of 300 tonnes of rice stocks set by a gazette issued on 4 May 2011 for a wholesaler very little, businesses have demanded that the limit be increased.

Businesses say that the scope of the paddy and rice business is increasing due to an increase in food demand. So, it is time to amend the directive issued 11 years ago.

In this regard, President of the Chattogram Chambers of Commerce and Industry Mahbubul Alam said, the population of the country is constantly increasing. At the same time, the demand for food is also increasing. Therefore, the quantity and duration of food stocks for wholesalers should be increased now.

He said that the limit of rice stocks for wholesale traders should be increased from 300 tonnes to 2,000 to 3,000 tonnes. At the same time warehousing time should be increased from 30 days to 45 days.

Some traders are also expressing their displeasure over the sealing of the warehouses, saying that stockpiling rice is very important to keep the supply in the market uninterrupted.