Rice mill owners in Kushtia’s Khazanagar, the country’s second largest hubs for fine rice production—have announced a marginal price reduction of Tk.1 per kg after reportedly steep increases of Tk.10-12 per kg.
This announcement was made during a meeting with the Kushtia Deputy Commissioner (DC) on Wednesday (December 18). Starting at 4:30: pm, the meeting ended at 8: pm.
According to sources, the meeting was convened by Kushtia DC Toufiqur Rahman, in response to the repeated hikes in rice prices. Sources indicated that the price of different brands, particularly fine rice, hiked at least Tk.4 in the past two weeks.
In the chair of DC, Additional Deputy Commissioner ADC-(Gen) Sharmin Akhter, District Food Controller Al-Wazir Rahman, Deputy Director at the Department of Agricultural Extension, Kushtia Sufi Md. Rafiquzzaman and Sadar Upazila Nirbahi Officer (UNO) Partha Pratim Shil were also present at the meeting.
After the discussion, Joynal Abedin, General Secretary of Bangladesh Auto Major and Husking Mill Owners' Association, Kushtia unit stated that the price of all varieties of rice at mill gates has been reduced by Tk. 1 per kg effective from today (Thursday).
He further clarified that each mill owner will lower their selling price by Tk.1 kg whatever price they were previously selling.
MARKET ANALYSIS SHOWS DIFFERENT
Market analysis shows that over the last two weeks, rice prices at Khazanagar’s mill gates had risen by Tk. 2-3 per kg, while retail prices increased by around Tk. 4 per kg.
However, this is the peak harvesting season, and reports indicate a surplus of paddy production across the country during this Aman season.
Here, the market analysts are struggling to comprehend how rice prices continue to rise during the peak paddy harvest season. Rice mill owners consistently cite the rise in paddy prices as an excuse for hiking rice prices and this time is no exception.
The source indicates that the rice mill owners are breaking their own commitments in this regard.
Previously, after an order from the government, the district administration had set the price of Miniket (fine) rice at Tk. 62 per kg during a meeting on January 22 this year.
But the price hikes persisted. Currently, Miniket rice sells for Tk. 70-72 per kg at mill gates and Tk. 74 per kg in retail markets, reflecting an increase of Tk. 8-10 per kg over the past 10 months.
During the meeting, the DC issued a stern warning to the rice mill owners, saying, “We need to understand why prices are increasing so quickly. If paddy prices go up, rice prices should only rise after 15 days to a month—not immediately.”
He added, “You are blaming corporate businesses for these price hikes, but I have evidence that some mill owners in Khajanagar are part of this syndicate.”
“Our team is investigating and alternative actions will be taken if necessary,” DC warned.
District Food Controller Al-Wazir Rahman urged cooperation from the mill owners, blaming that some of the mill owners in Khajanagar are evidently involved with corporate groups.
He urged that “Leave the ‘WhatsApp groups’, the corporate groups maintain and provide us information on how they play.”
The mill owners, including M.A. Khalek of Desh Agro, Abdus Samad of Swarna Rice Mill, Zamshed Ali of Dada Rice Mill, Zahiduzzaman Ziku of Golden Rice Mill and Anwar Hossain of Chishtyia Rice Mill also shared their views during the meeting.