Rain, floods to cut paddy production by 80,000 tonnes

Heavy rains, floods, storms, and landslides are estimated to have cut down paddy harvesting to about 80,000 tonnes in the current Boro season, according to a recent report of the agriculture ministry.

Natural calamities have destroyed about 20,000 hectares of paddy land across the country this season.

Speakers at a views-exchange meeting on Sunday about this year's Boro harvest, said storms and rains in the northern region have damaged paddy production.

However, total paddy production is predicted to be more than 3 lakh tonnes higher than last year's, the report said.

According to the report, the season's paddy production is estimated to be over 2.11 crore tonnes, whereas last year's production was 2.08 crore tonnes.

According to ministry data, so far 94.44% of the total cultivated paddy has been harvested across the country. This season, paddy has been cultivated on 49.66 lakh hectares of land.

High yields not easing rice market

The country's rice market usually sees a drop in price during the Boro season every year as new paddy hits the stores. But despite a good yield this year, rice prices have been rising at record levels.

In the last three weeks, the price of different kinds of rice has gone up Tk3-6 per kg on average.

On Sunday, good quality Miniket rice was selling for Tk70 per kilo in wholesale shops at the Krishi Market in the capital, while retail consumers had to spend Tk74-75 a kilo for the same rice. Per kg, wholesale standard Miniket was Tk64-65, and Tk68-70 in the retail market. Another variety of the rice was available for Tk65 and Tk60 in the retail and wholesale markets respectively.

Wholesale Swarna and Paijam rice are Tk45-46 per kg Tk50 in the retail market, while good quality Nazirshail rice has crossed Tk80 per kg.  

According to TCB's Sunday market analysis, compared to last year, fine rice is selling at 7% higher this season while medium quality fine rice is 4% higher in cost, and coarse rice is 6.5% higher.

Staple food is feared to become costlier as wholesale prices are rising.

Where is the new rice?

Retail sellers blame supply disruption by millers for the price hike.

Abdus Salam, owner of Faridpur Rice Agency in Krishi Market, told The Business Standard, "Millers have reduced supply. Rice is delivered 8-10 days after it is ordered. They are also fixing new rates every one or two days."

Meanwhile, Food Minister Sadhan warned of unhealthy competition among traders who are 'buying and hoarding paddy for profit'.

"This unhealthy competition will not bring good results," he said.

Noting that new rice is not yet in the market, he said the rice available in the market now is old rice from last year.

"So where is the new rice going?" the minister asked.

Warning that this situation will not be allowed to continue, he said traders need to report to food department officials, who is buying how much paddy and who is releasing how much rice in the market.

He also said various corporate houses are buying and storing or hoarding paddy from the market.

Nirod Baran Saha Chandan, president of the Naogaon Paddy and Rice Stockholders' Association, said the media has reported that the war in Ukraine will create a food crisis and so many are hoarding illegally.