High Rice Prices Even in Peak Season, Ominous Signs in Market

The busy period of harvesting and threshing Boro paddy throughout Baishakh and Jaistha has come to an end. Despite overcoming various adversities, farmers have brought the new harvest home. The supply of new paddy has also increased in the market. However, this has had no positive impact on the rice market. On the contrary, rice prices have risen even during the peak season. From mill gates to wholesale markets—prices are on an upward trend everywhere. As a result, consumers are having to buy rice at higher prices. At the same time, allegations of illegal hoarding of paddy and syndicates controlling the market have created fresh concerns over instability in the rice market.

The country's main supply of rice comes from the Boro season. Although paddy production has been good this season, the benefits are not being reflected in the market. While farmers are happy with the yield, they are dissatisfied with the price of paddy. Consumers, on the other hand, are also not finding relief. Since the beginning of this month, the prices of almost all types of rice have increased by Tk 2 to 3 per kilogram at mill gates and wholesale markets.

Those concerned say that millers and traders are setting paddy prices arbitrarily. There are also allegations that they are buying paddy at low prices and selling rice at higher rates.

Naogaon is one of the largest trading hubs for paddy and rice. The district is particularly renowned for producing fine varieties of paddy. Farmers here cultivate more Kataribhog, Jirashail, Paijam, and Subarnalata varieties. According to farmers, about 50 percent of the total Boro cropland in the district has been planted with Kataribhog, 20 percent with Jirashail, and 7 to 8 percent with Subarnalata.

According to the Department of Agricultural Extension, during the current Boro season, 189,000 hectares of land in Naogaon district were planted with Boro paddy, producing approximately 1.2 million tons of paddy. Other districts in the northern region have also seen good Boro yields this year.

From the beginning of Baishakh, paddy harvesting and threshing began in Naogaon and various other northern districts. Currently, most farmers have brought their paddy home. Many are bringing paddy to the markets for sale. However, farmers complain that they are not making the desired profit by selling paddy at the current market price. Although production costs have increased, prices have not risen accordingly.

Markets in areas such as Mataji, Mahadebpur, Madhail, Sapahar, Shishahat, Saraswatipur, Hapania, Chakgauri, Chaubaria, and Abadpukur are known as major centers for paddy trading. Recently, at the Chakgauri market, it was observed that middlemen were buying paddy from farmers and loading it onto trucks to send to various mills and godowns.

Currently, Kataribhog paddy is being sold at Tk 1,400 to 1,450 per maund. Jirashail is priced at Tk 1,200 to 1,300, and Subarnalata paddy is selling at a maximum of Tk 1,300 per maund. Coarse paddy is priced at around Tk 1,200 per maund. Farmers allege that as soon as new paddy hit the market, traders lowered the prices.

Sirajul Islam and Azizul Islam, farmers from the Mataji Bottoli village in Mahadebpur Upazila, said, "Production costs have increased, but the price of paddy has not risen accordingly. Millers and middlemen are forming syndicates to buy paddy at low prices."

Traders, however, have a different perspective. Abul Hossain, a trader at the Chakgauri market, said, "Farmers are actually getting a good price for new paddy. Last year, the same paddy sold for Tk 1,200 per maund. Compared to that, prices are higher this year."

On the other hand, although paddy supply has increased in the market, there has been no impact on rice prices. Over the past two weeks, the price of coarse and medium-quality rice has risen by Tk 1.50 to 2 per kilogram, while fine rice prices have increased by nearly Tk 3.

Currently, at mill gates and wholesale markets, Kataribhog Nazir rice is selling at Tk 70 to 72 per kilogram. Jirashail rice is priced at Tk 65 to 68, and coarse rice prices are not falling below Tk 55.

Millers attribute the rise in rice prices during the peak season to the increasing cost of paddy. However, local concerned citizens and consumer representatives blame illegal hoarding and syndicate influence in the market.

Golam Mostafa, a rice miller from Naogaon, said, "Wealthy individuals, seasonal hoarders, and some millers in major trading hubs—including Naogaon, Dinajpur, Kushtia, Bogura, and Chapainawabganj—are buying paddy at low prices and hoarding it illegally. Later, they increase rice prices at their convenience. This situation has arisen due to a lack of effective market monitoring."

He claimed that a large portion of fine paddy has already moved into the warehouses of influential millers and traders, giving them significant control over the rice market. Small-scale millers are struggling to compete.

However, Farhad Hossain Chokdar, General Secretary of the Naogaon District Rice Mill Owners' Group, said, "There is currently no shortage of paddy or rice in the country. Due to increased supply to government warehouses, there has been some pressure on coarse paddy, which has raised paddy prices, and that impact has also been felt in the rice market."

Nais Parveen, a member of the Naogaon Consumer Rights Movement, stated that there is a lack of effective monitoring at paddy markets, mill gates, wholesale outlets, and retail points. As a result, illegal hoarding is increasing, creating instability in the rice market. She called for immediate strengthening of market monitoring.

Farhad Khandaker, Naogaon District Food Controller, said, "Paddy production has been good this season, and the supply of new paddy and rice in the market is normal. There is no room for price hikes on any pretext. We are keeping regular checks at the warehouse and mill levels. If any irregularities are found, legal action will be taken. In addition, joint operations will soon be conducted against unlicensed warehouses and illegal hoarding."

According to those concerned, to keep the paddy-rice market stable, it is essential to stop illegal hoarding and ensure effective monitoring from production to the retail level. Otherwise, the signs of instability already visible in the rice market during the peak season could turn into a larger crisis in the future.