Rice prices are increasing in line with fuel prices: Wholesale prices increase by Tk 100-200 per sack

Special Correspondent

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The impact of the increase in fuel prices has started to be felt in the wholesale rice market. The price of a 50-kg sack of rice has increased by Tk 100 to Tk 200 in various wholesale markets in the capital, depending on the type. However, despite the increase in wholesale prices, the full impact has not yet been felt in the retail market. Traders say that prices may also increase in the retail market after the old-priced rice stock runs out.

On September 20, the government increased the prices of diesel, kerosene, petrol and octane by Tk 20 per liter. The new prices were set at Tk 135 for diesel, Tk 155 for kerosene, Tk 160 for petrol and Tk 165 for octane. Eleven days later, a visit to Babubazar, Jatrabari, Shanir Akhra and Mohakhali markets in the capital showed a trend of increasing wholesale prices of rice.

At the Jatrabari rice warehouse, a 50-kg sack of rice is being sold for Tk 2,500 to Tk 2,400. A sack of mini-ket rice is being sold for Tk 3,000 to Tk 3,300. Traders say that the increase in transportation costs is one of the main reasons for the increase in wholesale prices.

However, retail traders say that they do not have the opportunity to increase prices right now as they have stocks of previously purchased rice. Once the new price of rice comes into the market, prices may also increase at the retail level.

Shah Alam, a salesperson at Messrs. Karim Rice Agency in Jatrabari, said that about 20 days ago, he sold 28 sacks of rice for Tk 2,050 to Tk 2,100. Now the same rice is being sold for Tk 2,150 to Tk 2,300.

That is, the price of coarse rice per kg at the wholesale level has increased by about 2 to 3 taka. According to him, the price of a sack of Atap rice, the lowest priced of the twenty-eight varieties, is now 1,975 taka.

The prices of various varieties of rice, including Miniket, Atash, Paizam and Nazirshail, have also increased at various shops. In Jatrabari market, a 50-kg sack of Miniket is being sold for Tk 3,000 to Tk 3,300, up from Tk 150.

Shafiqul Islam, proprietor of Messrs. Shafiq Enterprises in Shanir Akhara, said that the price of a sack of 28 rice has increased by about Tk 150 and the price of fine rice has also increased by about Tk 150.

However, he has not yet increased the price at the retail level. According to him, buying rice at the new price costs about three taka more per kilogram. But since the store bought rice at the previous price, it is not possible to charge the new price until they run out. This has also reduced his profit.

Despite the increase in transportation costs after the increase in fuel prices, there has been no major change in the price of rice in the retail market. Traders say that due to high competition in the market, many people are selling rice purchased at the new price at the old price.

A retailer at Shanir Akhara said that he is selling Atash rice at Tk 55 per kg, Miniket at Tk 70, Pajama at Tk 66 and Nazirshail at Tk 90 per kg. However, his profit has decreased compared to before.

He said, it is difficult to increase the price by one or two taka at a time in the area. Therefore, rice will be sold at the previous price for a few more days. A decision will be taken later after seeing which direction the market goes.

A trader at Mohakhali Raw Market also said that the rice stock in his shop will last for another 10 to 15 days. The new price will take effect only after buying new rice.

Traders at the Babubazar rice warehouse also say that the transportation cost of rice has increased due to the increase in fuel prices. However, the new price has not yet been fully determined.

Alif Hossain, a businessman at Chandpur Traders, said, “The price of rice does not increase all at once. It increases gradually. Some are increasing the price by Tk 50 per bag, some by Tk 100 or more, including transportation costs. The market price has not yet been fixed.”

Another businessman from Babubazar, Abdur Rahman Sikder, said that in a week, the price of a 50-kg sack of miniket rice from a company has increased by Tk 150. A sack of medium-quality miniket has increased from Tk 2,500 to Tk 2,600. Twenty-eight sacks of rice from another company are being sold at Tk 2,400, up from Tk 150.

However, none of the traders can yet say for sure how much rice prices will ultimately increase in the retail market.

Along with loose rice, the prices of two and five-kilogram packaged rice marketed by various corporate organizations have not yet increased. Five-kilogram rice of various brands is being sold at Tk 480 to Tk 525 in the capital’s markets.

In the retail market, coarse rice is being sold at Tk 52 to 55 per kg, various types of fine rice at Tk 65 to 72 per kg, and Kataribhog at around Tk 90 per kg. In the case of packaged fine rice, the price is around Tk 95 to 105 per kg.

According to the Trading Corporation of Bangladesh (TCB) Dhaka Metropolitan Daily Market Price Data, Nazirshail and Miniket rice were sold at Tk 72 to 85 per kg on Thursday. A month ago, the price of these rice was Tk 70 to 85. And on September 30 last year, the price of the same type of rice was Tk 75 to 85 per kg.

In other words, there has been no major change in the price of rice in the retail market in recent times. However, traders fear that the introduction of new prices of rice in the wholesale market will also affect the retail market in the coming days.

According to the Department of Agricultural Extension, the annual demand for rice in the country is about 37 million to 39 million tons. As a result, the impact of the increase in transportation costs on the market of essential commodities like rice will now depend on the price at which new shipments enter the market and the increase in transportation costs.