'Unusual' rice price spike in Dhaka markets stings buyers

The prices of all varieties of rice, the staple of Bangladeshis, are increasing at a rate that even the sellers cal 'unusual', without any good reason in the markets of Dhaka.

According to the Trading Corporation of Bangladesh (TCB), price of Swarna variety went up by Tk 6-8 per kg and that of Nazirshail or Miniket by Tk 4-5 per kg in between two weeks after the Eid-ul-Azha.

On Friday, TCB said Swarna was sold in retail markets at Tk 36-40 per kg and the other two kinds at Tk 48-56 per kg.

Visits to the markets also confirmed the rates. But at some markets the prices were up by Tk 1 or 2 more.

Mohiuddin Sheikh, owner of Kamrul Rice Agency at Badda, told bdnews24.com: "The prices of all kinds of rice, except Nazirshail, are rising abnormally. In less than a month, BR-28's price in the retail market went up from Tk 36 to Tk 40, Swarna's from Tk 33 to Tk 40 and Miniket from Tk 42 to Tk 45."

"A growing market of rice has been attributed as the reason for the price spike."

A staff at Babu Bazar's Haji Afsar Rice Agency, Nasir Sardar, said the rise in prices was impacted by the government decision to buy rice from farmers at Tk 32 per kg.

Another businessman at the same market said traders hiked the prices citing a slew of reasons including a supply glut, excessive rainfall and VAT on imported rice.

Karwan Bazar Rice Traders Association's Secretary Abu Raihan Jaglu told bdnews24.com: "Mill owners are stocking up rice - this is the main reason."

"The rice we bought at Tk 40 before the Eid now costs us Tk 43-44. The prices will fall once the mill owners stop hoarding."

Some buyers at the markets also left upset at the unusual rise in the prices.