Traders announce cuts in rice prices

Traders have announced a reduction in the prices of rice after receiving assurances from the government of ‘solutions to several problems’.

“Rice prices will fall by Tk 2-3 per kg starting tomorrow,” said Bangladesh Auto Major and Husking Mill Owners Association General Secretary KM Layek Ali after a meeting with three ministers at the Secretariat on Tuesday.

Minister of Commerce Tofail Ahmed, Minister of Agriculture Matia Chowdhury, Minister of Food Kamrul Islam and former Food Minister Abdur Razzak met with representatives from rice mill owners, importers, wholesalers and retailers to address the recent spike in rice prices.

“The relevant ministries will take action to remove these problems,” Tofail said after a discussion that lasted over two hours.

The commerce minister also approved the use of plastic instead of jute sacks for the import, production and distribution of rice for three months.

“Get the rice however you can. We will relax the use of plastic sacks for two to three months.”

Rice imports from India through Rohonpur will also be allowed, said Tofail.

Two rounds of floods that damaged crops and depletion of rice reserves have prompted the government to begin several rice import initiatives. It has also cut rice import duties by 24 percentage points to encourage private sector imports.  

Though a record amount of rice has been imported by public and private entities in the past two months, the price of rice has continued to rise. The government has blamed the deception of traders for the market instability.

“It was a good meeting,” Bangladesh Auto Major and Husking Mill Owners Association President Abdur Rashid told reporters. “Rice prices will begin to fall in a few days.”