Increased trucking cost keeps rice price high

The price of coarse rice has remained unchanged over the past one week, despite an increasing supply of the newly harvested Boro rice, as millers stopped reducing the price any further following a rise in trucking cost caused by the recent fuel price hike.

The wholesale price of coarse rice had declined by more than Tk 100 per maund [37.3 kilogram] over the previous two weeks with the newly harvested Boro stocks hitting the market.

On Wednesday, BRRI-28 variety of rice was selling at Tk 1,290 to Tk 1,310 per maund at Babubazar wholesale market in the capital. Its price stood at Tk 1,350 a maund three weeks back.

The price of newly harvested Pari rice at Babubazar ranged between Tk 1,250 and Tk 1,260 per maund on Wednesday, down from Tk 1,400 a maund three weeks ago.

Unsorted Guti variety of rice was wholesaling at the market at Tk 1,100 to TK 1,120 per maund on the day, against Tk 1,250 a maund three weeks back.

'In the past week there has been no change in coarse rice price at this market,' said Altaf Hossian, a Babubazar wholesaler on Wednesday. Altaf and other wholesalers of the market told New Age that millers from northern districts had made no price cut of coarse rice in the past week.

Altaf said, 'May be they are offsetting the increased cost of trucking by keeping the coarse rice prices high.'

Another wholesaler, Bulbul Ahmed, however, said, 'The coarse rice price has remained high because the millers are stockpiling unhusked rice.'

A number of Babubazar traders said the price of coarse rice was not seeing any sharp fall as harvest and supply of Boro rice to market were yet to reach their peak.

Hafez Belal, a miller at Shantahar, told New Age, 'Coarse rice price has remained somewhat stable here over the past week.'

He said truckers were charging higher fares to transport rice from North Bengal mills to wholesale markets across the country following the price hike of diesel and CNG.

A number of millers in North Bengal told New Age that truckers had increased their fare by at least Tk 1,000 for each consignment.

'The increased fuel cost has raised the cost of carrying paddy from rural markets to mills and of transporting rice from mills to markets and thus impacting the rice prices,' said Sabuz Mia, a miller.

The consumers at retail markets said the price of coarse rice had not declined as expected, although the new stocks of rice had already begun to hit the market.

On Wednesday, coarse rice of BRRI-28 and Pari varieties was retailed at Tk 35 to Tk 36 per kilogram, sorted Guti variety at Tk 37 to Tk 38 per kg, and unsorted Guti at Tk 32 to Tk 33 per kilo at Karwan Bazar kitchen market in the city.

Bangladesh Truck and Covered Van Malik Samity general secretary admitted that trucking cost from Naogaon to Dhaka had increased by Tk 500 to Tk 1,000 per trip. 'Individual owners are now setting the trucking fare as the government has not done it yet,' he added.

Source: New Age