Low-income people are at risk the most when prices of daily necessities including rice go up. Especially for those who have lost their jobs during the covid period and those whose incomes have declined, this instability in the market is nothing more than a slap on their poverty-stricken faces. In the last one week, prices of rice have gone up by at least Tk2-3 per kg, media reports say. Even before Eid-ul-Adha, rice prices also saw inflation. Now, coarse rice is not available below Tk50 per kg in different markets of the capital. Even before Eid-ul-Adha, coarse rice sold for Tk47-48 per kg. The prices of other varieties of rice have also increased proportionately. It is not at all normal for the prices of rice to go up in the middle of the season. According to the government, this year has seen bumper yields of paddy despite floods and cyclones. What is the reason for the increase in prices, then? In this case, traders, rice mill owners and stockists are manipulating the market. Especially those who have made money dishonestly think it is more profitable to buy and stockpile the staple food.
Not only rice, but eggs, chicken, sugar and edible oil have also become pricier. Retailers have raised vegetable prices on the pretext of a severe lockdown. After Eid-ul-Adha, the price of chicken came down a bit but it is going up again. Chicken eggs are selling for Tk110 a dozen while broiler chickens are elling for Tk110-115 per kg and Sonalika for Tk240 per kg. Compared to that in the last week, the price of broiler chicken has increased by Tk15 per kg.
There is no alternative to increasing the supply in the market to stop the rise in rice prices. It can happen in two ways. First, we can import rice from abroad. The government has taken a positive decision on rice import. Import duty has been slashed from 75 per cent to 25 per cent. Even though the import duty was reduced last year, the import was allowed after three months. By that time, the stockists had made a big profit. The same incident should not recur. If it is imported in both public and private sectors, there will be healthy competition. Otherwise, there will be attempts to take undue advantage.
And second, the sale of rice stocked in government warehouses should be further increased in the open market through TCB and the food department. The way the long line of men and women is seen in front of the trucks in the open market affirms that the people are in a serious plight at these times. Before, only the poor people used to stand in the line. Now, the lower middle class is also queuing up with them. The Aman season is yet to arrive. In that case, there is no option to increase the supply in the market by importing rice as soon as possible. If the government takes initiatives to import rice, traders and stockists will be forced to release more rice in the market.
It does not make sense to stop the import of rice to show that we are self-sufficient in rice. It actually benefits mill owners and stockists. When the prices of rice go up, the mill owners and stockists eat up all the profit. Therefore, instead of trying to benefit the farmers by increasing the price of rice, emphasis should be put on reducing their production cost.
