In recent weeks, Dhaka’s rice market has witnessed a significant downturn in prices across various rice varieties, a trend expected to persist in the coming months.
The decline in rice prices, particularly medium and coarse varieties, is attributed to the ongoing Boro harvest, projected to extend until mid-next month. Visits to prominent markets such as Kawran Bazar and Mohammadpur Government Krishi wholesale market reveal notable price reductions, with medium fine quality Miniket rice now priced at Tk66 per kg, down from Tk68 a week prior.
Wholesalers corroborate this trend, citing reductions of Tk100-150 per 50kg sack on average. Coarse variety “BR-28” is now available at Tk52 per kg, marking a Tk3 decrease from the previous price. This decline is indicative of the market’s response to increased supply, fueled by the influx of new harvests.
Dr. Jahangir Alam, a renowned farm economist, asserts that rice prices are unlikely to surge in the next two months, given the favorable yield of Aman and Boro crops. However, he anticipates further declines as Boro, contributing 54% of total rice output, floods the market.
Contrary views emerge from Nirod Baran Saha, general secretary of Rice Arotdar Samity, who highlights discrepancies in Boro production, particularly outside the haor region. Nonetheless, Badal Chandra Biswas, Director General of the Department of Agricultural Extension (DAE), remains optimistic about achieving optimal Boro production in FY24, aligning with the country’s upward trajectory in rice production.
Data from the Bangladesh Bureau of Statistics (BBS) underscores this optimism, revealing a 3% increase in Boro rice production in FY23, contributing to a record-high total rice production of 39.1 million tons. Amidst evolving market dynamics, stakeholders remain vigilant, navigating fluctuations in prices and production to ensure stability in the rice market.
