Rice prices remain high despite increased imports

Infographic: TBS

Rice prices remain high despite the resumption of imports last November and a fresh supply from the Aman harvest. Since November, the country has imported 8.20 lakh tonnes of rice, yet retail prices are among the highest on record. 

In Dhaka's markets, coarse Gutiswarna is selling at Tk54–56 per kg, medium varieties like Paijam and BRRI-28 at Tk56–64, and fine rice such as Miniket is priced between Tk82–90 per kg. These rates have held steady since last Ramadan.

According to the Trading Corporation of Bangladesh (TCB), fine rice is currently 11.35% more expensive than it was in the same period last year, while medium and coarse varieties have risen by 8.85% and 2.94%, respectively.

Wholesalers expect some relief once Boro season rice enters the market. 

Md Shawon, a wholesaler at Karwan Bazar, told The Business Standard, "Prices peaked during Ramadan but haven't changed since. With Boro rice arriving soon, we may see a decline."

Although there were no imports in FY2023–24, the preceding years saw significant volumes: 10.56 lakh tonnes in 2022–23, 9.88 lakh tonnes in 2021–22, and 13.59 lakh tonnes in 2020–21.

However, importers argue that high global prices are limiting the impact of imports on local markets. Chitta Majumder, a rice importer and miller, said, "There's no profit in importing rice. Swarna costs about Tk50–51 per kg to import, and with added expenses, it's not viable – especially for medium or coarse rice."

Govt to procure 14 lakh tonnes of Boro rice at Tk49 per kg

This season, the government has increased its procurement price by Tk4 per kg, offering Tk36 for paddy and Tk49 for parboiled rice, with plans to collect 3.5 lakh tonnes of paddy and 14 lakh tonnes of rice.

Traditionally, rice prices dip during the harvest. But this year, some traders fear that the higher procurement rate could keep prices elevated. 

Mosharraf Hossain, another Karwan Bazar wholesaler, said, "With the government raising the price, Boro rice may not bring much of a drop."

Despite record harvests in recent seasons – 1.71 crore tonnes from Aman and 2.10 crore tonnes from the last Boro season – consumers have seen little benefit. Experts point to the role of government stock in market stability.

With stocks dropping last November, the market turned unstable. Even after imports resumed, high international prices blunted their impact. The current stock stands at 9.49 lakh tonnes, according to the Food Ministry.

Speaking to TBS, Jahangir Alam, professor in the Agribusiness and Marketing department at Bangladesh Agricultural University, said, "When government stock falls, mill-level prices rise. If the import drive had started earlier, prices wouldn't have climbed this high. Timing is everything."

Hilsa prices soar 

As Pahela Baishakh approaches, demand for hilsa has surged, sending prices skyrocketing in Dhaka's markets. 

Visits to Mohakhali, Uttar Badda, Shahjadpur, and Karwan Bazar on Friday (11 April) revealed that hilsa weighing 450–500g were selling for Tk1,200–1,400 per kg, those weighing 550–650g were priced at Tk1,700–1,800, and larger hilsa, around one kg, were going for Tk2,200–2,300 per kg.

Vegetable prices also climb

After staying stable during Ramadan, vegetable prices have also jumped. Most are now selling for Tk70–80 per kg, a Tk20 increase. 

Teasel gourd (kakrol) is priced at Tk160, long beans at Tk100, and brinjal and bitter gourd at Tk80. Tomatoes are selling for Tk50 per kg, while pointed gourd is Tk80, okra Tk70, papaya Tk50, potatoes Tk25–30, and green chili Tk80.