Middle-income earners in Dhaka are facing a sharp rise in the cost of fine rice, with popular varieties like Miniket and Najirshail now priced between Tk80 and 90 per kilogram.
Purchasing in bulk offers minimal relief from the financial strain.
Over the past month, the price of fine rice has increased by Tk5 to 8 per kg, continuing a trend of incremental hikes since 2020.
According to the Trading Corporation of Bangladesh (TCB), the price of fine rice was as low as Tk45 per kg in January 2020 but has now surged to Tk70. The highest price has escalated from Tk60 to 84 per kg.
A market survey reveals that popular brands such as Rashid, Diamond, and Sagor are not available below Tk80 per kg.
Miniket rice sold in supermarkets, packaged attractively, is even higher, nearing Tk90 per kg.
Consequently, middle-income families are compelled to spend Tk80 per kg on rice.
The cost of coarse rice has also risen significantly.
TCB data shows that coarse rice, which was priced between Tk30 and 35 per kg in January 2020, now sells for Tk54 to 58 per kg.
Visits to various markets in Dhaka revealed that boiled rice is not available below Tk55 per kg, with better quality varieties priced between Tk58 and 60 per kg.
Coarse rice prices have increased by Tk3 to 4 per kg in just one month. Meanwhile, medium-quality rice is being sold at prices ranging from Tk60 to 66 per kg.
Efforts to stabilise coarse rice prices include government initiatives such as subsidised sales by the Food Department and the distribution of rice to the poor under the food-friendly programme.
However, little has been done to alleviate the rising costs for the lower-middle and middle classes, who do not qualify for the TCB's family cards and rely entirely on market prices.
"This additional expense is putting us in a difficult position, especially as other costs are also increasing," said one consumer.
Conversations with several families reveal that a household of four requires around 25 kg of rice per month.
A price increase of Tk5 per kg raises their monthly expenses by Tk125.
Although this might seem minimal, the cumulative effect of rising prices across various essentials is becoming burdensome.
"The cost of living is soaring, with prices of staple foods like fish, meat, milk, and eggs remaining high. People are struggling," remarked a private-sector employee.
The rice market is primarily controlled by large mills, which attribute the rising prices to high paddy costs and other expenses.
One mill owner cited last year's government pressure to keep prices down and the current year’s dominance by a few corporate entities purchasing most of the paddy as reasons for the price surge.
He mentioned that paddy prices have increased by Tk10 per kg compared to the previous year.
However, an analysis shows that rice prices have risen disproportionately to paddy prices.
Data from the Department of Agricultural Marketing indicates that the wholesale price of medium-quality Boro paddy was around Tk27 per kg in 2020, increasing to just over Tk30 in 2023—an increment of a little over 12%. In contrast, the retail price of fine rice has surged by 42% during the same period.
Market analysts suggest that large corporations have entered the rice market with significant financial resources, enabling them to stockpile vast quantities of paddy and control the market.
These entities easily obtain bank loans and can import rice to counter competition if needed.
However, the recently ousted Awami League government’s lack of effective market strategies has allowed these corporations to dominate, focusing instead on superficial enforcement campaigns.
A 2019 study by the Bangladesh Institute of Development Studies (BIDS), commissioned by the Bangladesh Competition Commission, identified 50 major rice mills as the key players in the market, controlling various stages from paddy procurement to rice production.
Due to delayed interventions, importing rice has now become challenging.
According to the World Bank, the current price of rice in Thailand and Vietnam is around USD 500 per ton, down by about USD 100 from last year.
However, Bangladeshi importers remain disinterested due to the high exchange rate, with the dollar now priced at Tk123.
This rate translates to an import cost of approximately Tk62 per kg, excluding shipping, additional expenses, and profit margins.
Typically, rice importation in Bangladesh is prohibited but is allowed under certain conditions with prior approval.
Although the government reduced the import duty from 62.5% to 3% in October, there has been little impact on imports.
A government official, speaking anonymously, pointed out that large mill owners exploit the restricted import policies to increase prices at will.
The absence of robust oversight by the Food Ministry has further exacerbated the situation.
