Rice price rose by five to 18 percent in last one month in spite of the 11.5 lakh metric tonnes of the grain in government stocks and projected Aman production of 1.3 crore tonnes.
Prices of fine rice now range from Tk 32 a kilogram to Tk 44, while medium quality and coarse rice prices range from Tk 26 to Tk 33 a kg, according to a Trading Corporation of Bangladesh report released on January 6.
Meanwhile, rising by 7 to 15 percent, flour now sells at Tk 22 to Tk 34 a kg, which was Tk 19 to Tk 32 a month back.
Agronomists say the price hike is basically driven by high international prices, especially as India and Philippines faced production shortfall in droughts and typhoons respectively late last year.
India lost 15 million metric tonnes of production while the Philippines imported 2.5 million metric tonnes of rice last year. Rice price in India remains $330 to $470 per tonne, while Thailand is not exporting rice at prices below $500 per tonne. India also maintains bans on rice export since 2007.
Agreeing to that Food and Disaster Management Minister Dr Abdur Razzaque said cold wave, which hampered milling of rice, also contributed to the rise.
"This price is not very intolerable and once the cold wave goes, market will be stable," he also said at a media briefing at his ministry.
He stressed starting open market sales to stable market if necessary saying the ministry already allocated 3,20,750 tonnes of rice for Food for Work and Test Relief.
Meanwhile, economist Dr Mahabub Hossain said present price of rice is acceptable provided that farmers get benefit from it, but traders' syndication may manipulate it in line with international prices.
He said rice situation now in domestic market is good and so there is no reason for any further price hike.
Domestic annual rice demand is 2.7 crore tonnes, while this fiscal year's production is projected at 3.2 crore tonnes, including 1.9 crore tonnes boro next season, Dr Hossain said.
On wheat price hike, Shahidul Islam, former director of the Department of Agriculture Extension, said wheat prices now depend largely on international market, as domestic wheat production declined to only 7 lakh metric tonnes from some 20 lakh tonnes a decade back.
Last year, the wheat prices increased by 20 percent late in November compared to September, mainly because of price developments in other markets, especially maize and rice, says Food Outlook -- a monthly Internet based newsletter of the Food and Agriculture Organization (FAO) released in December.
In November, the price of United States' wheat averaged $228 per tonne, up 14 percent from September.
Under such realities, experts suggested efficient supply chain management and to ensure good Boro production this season.
“As wheat price is low compared to rice in the international market, the government can import in bulk and use them for social safety net programmes,” Mahabub Hossain said.
Shahidul Islam said the government already announced subsidies in fertilizers and diesel, which was good, but a declaration of the rice procurement now -- to check any crisis -- can encourage farmers to grow more rice.
Food minister said his office was intensively monitoring the price spiral and intervened the market in any need.
“But, we also have to remember better prices work as incentives for farmers to grow more crops,” he said.
About wheat import in bulk, the minister said the government is importing three lakh tonnes. Besides at private level, around 16-17 tonnes of wheat was imported, Razzaque noted.
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