Rice prices rise as fuel costs bite at season’s end

Rice prices have risen in several districts, including Dhaka, over the past week as higher fuel costs, rising paddy prices and seasonal factors pushed up prices, adding to the burden on consumers already grappling with persistently high living costs.

Visiting Dhaka’s retail markets on Sunday, The Daily Star found that fine rice was selling at Tk 74-Tk 75 per kilogramme (kg), up from Tk 72 a week ago.

Tap here to add The Daily Star as a trusted source

Medium-grain rice, widely consumed by lower-income households, had risen to Tk 58-Tk 65 per kg from Tk 55-62.

Coarse rice prices, however, remained unchanged at Tk 50-Tk 55 per kg.

The latest increase comes amid persistently high inflation. The 12-month average inflation rate stood at 8.65 percent in September, according to the Bangladesh Bureau of Statistics (BBS). This measure reflects the average rate of price increases over the preceding 12 months, rather than the change in prices during September alone.

Shamim Al Mamun, a resident of Agargaon in Dhaka, said repeated increases in the prices of essential goods were making it increasingly difficult for households to manage their expenses.

“There is no month when the price of some essential item isn’t going up. Amid this already high cost of living, the rise in rice prices will put even more pressure on us,” he said.

However, the market picture differs from the official data. According to the state-run Trading Corporation of Bangladesh (TCB), no variety of rice became more expensive over the past week, while fine rice prices fell by 1.27 percent.

Over the past month, medium-grain rice prices rose by 2.50 percent, the data showed.

Shatadal Mondal, assistant director for market data at the TCB, said the organisation’s figures appeared accurate based on the information collected so far, but it would investigate the discrepancies after The Daily Star raised the issue.

“Our market coverage is limited to Dhaka, including Mirpur, Mohammadpur, Malibagh, Rampura, Mohakhali, Hatirpool and West Agargaon,” he said, adding that the TCB’s data matched on one item but differed on two others.

“Since our people and your journalists both visit the markets, there shouldn’t be much room for a gap. Even so, we will look into it thoroughly to determine whether the data is accurate and whether such a discrepancy occurred,” he added.

The discrepancy comes as traders in Dhaka report rising prices, attributing the increases to higher fuel costs that have pushed up transportation fares and rising paddy prices that have increased milling costs.

Mohammad Shaon, a wholesaler at Mohammadpur Krishi Market, said the wholesale price of fine rice had risen by Tk 1 per kg to Tk 66, while medium-grain rice had increased by Tk 1.50 to Tk 48.50. Coarse rice prices remained unchanged.

A 25-kg sack of fine rice now costs Tk 1,650, while a sack of medium-grain rice sells for Tk 1,212, he said.

According to Shaon, transporting a truckload of rice from Kushtia to Dhaka previously cost Tk 20,000, but the expense has risen to Tk 24,000 following the fuel price hike.

Mamunur Rashid, another wholesaler at the same market, said the end of the season was also contributing to the price rise, as harvesting of Aman paddy had only recently begun in several districts.

Rice prices, however, remain slightly lower than at the same time last year, he added.

According to media reports and TCB data, coarse rice sold for Tk 55-65 per kg around the same time last year, while fine rice cost Tk 75-85, depending on quality.

Mohiuddin Sarker Saiful, a wholesaler and retailer at Karwan Bazar, also cited higher transportation and paddy costs as factors behind the increase.

The latest round of fuel price adjustments in the third week of September raised the prices of diesel, petrol and octane by Tk 20 per litre amid volatile global market prices and rising subsidies.

Traders and millers in Kushtia and Naogaon, two important rice-producing and trading areas, also reported increases, citing higher paddy prices, transportation costs and seasonal factors.

Joynal Abedin Pradhan, general secretary of the Bangladesh Auto Major and Husking Mill Owners Association in Kushtia, said mill-gate prices of rice had increased by Tk 1-2 per kg over the past month.

Mill-gate prices are the rates at which millers sell processed rice to wholesalers, before transportation and other trading costs are added further along the supply chain.

Depending on the variety, fine rice was now selling for Tk 55-67 per kg at the mill gate, Joynal said.

He attributed the increase to higher diesel and paddy prices. Paddy prices had risen from Tk 1,120 to Tk 1,240 per maund over the past month, he said.

At this time of year, paddy is dried more thoroughly, reducing its moisture content and weight, which can increase the effective cost of the raw material, he added.

Nirod Boron Saha, a rice miller and president of the Rice and Paddy Stockists and Wholesalers Association in Naogaon, said wholesale prices of fine rice had risen by Tk 30-50 per maund over the past five days.

Fine rice was selling at Tk 2,050-2,080 per maund (37.32 kg) in the local wholesale market, he said.

Nirod said prices of different rice varieties had increased by Tk 1-1.50 per kg in recent days as the season neared its end, describing the rise as normal for this time of year.

[Our Kushtia correspondent, Anis Mondol, contributed to this report.]