Paddy price hike drove rice prices, agriculture minister says

Abdur Razzaque has ruled out market manipulation driving the rice price hike as he believes a rise in paddy prices has pushed rice prices, which he says is good for the farmers.

The agriculture minister, speaking at the inauguration of an international fair of farm goods in Dhaka on Thursday, mentioned the drop in paddy prices, which affected farmers last season, to defend the rice price hike.

“The media, civil society leaders and politicians criticised the government for the fall in paddy prices following a bumper production,” he said.

“Now rice prices have gone up by Tk 4 to 5 per kg in past six to seven days. Paddy prices have also increased by Tk 150 to 200 per maund*.

“I’ve talked to the farmers and mill owners…Maybe paddy price hike has affected rice prices,” the minister said.

The government has decided to procure 600,000 tonnes of Aman paddy at Tk 26 a kg directly for the first time from the farmers, not mill owners, this season.

Razzaque believes the farmers will benefit as there will be no political influence in the process, which is under way from Nov 20 and will run through to Nov 28. “Because the farmers enlisted this time will be dropped next season,” he argued.

Rice prices started to rise in the beginning of November after the government had made the announcement on the Aman crop procurement.

In the market, paddy prices have increased to Tk 850 per maund from Tk 700 while the government is purchasing per maund at Tk 1,040.

Good quality Miniket rice prices went up in Dhaka to Tk 2,150 from Tk 2,000 per sack of 50kg in a week, traders said.

“I’ve heard that the mill owners raised rice prices due to the paddy price hike,” Mohiuddin Harun of Janani Rice Agency at Mirpur-1 told Staff Correspondent.

(*1 maund = 37.42kg)