Bangladesh News

Prices of two essential commodities, rice and edible oil, went up further on local markets over the last two days.

The prices went up mainly due to an imposition of a fresh restriction on rice export by the Indian government on Saturday, and due to hoarding of edible oil by some local large scale traders and mill owners, traders of the commodities said yesterday.

The Indian government in a sudden move imposed a fresh restriction on export of coarse rice, barring export of the essential commodity at prices lower than US$650 a ton.

Since the imposition of new restriction, Indian traders have been asking Bangladeshi importers to amend their letters of credit (LC) for being able to get their rice imports, for which they had opened LCs at the previous rate of $505 a ton more than a month ago.

But due to the abruptness with which the price schedule had been changed the importers did not get enough time to amend the LCs.

As a result, hundreds of rice-laden trucks, which had been scheduled to enter Bangladesh, were seen stranded at the Indian land port Petrapole across the border yesterday, our Benapole correspondent reported.

Our Chapainawabganj correspondent reported hundreds of rice-laden trucks were stranded on the Indian side across Sonamasjid land port.

Our Dinajpur correspondent reported 400 rice-laden trucks were stranded on the Indian side of the border at Hili port while according to another report no rice-laden truck could enter Bangladesh yesterday through Bhomra port in Satkhira either.

President of Exporters Importers Association at Sonamasjid Land Port Kabirur Rahman told our correspondent that they urge the government to immediately embark on a negotiation with the Indian government to bring a resolution to the crisis.

Market sources in the capital said on wholesale markets Indian variety of swarna rice was selling for Tk 1,080 to Tk 1,100 a maund yesterday compared to the variety’s previous price of Tk 1,050 to Tk 1,070.

On wholesale markets guti, a coarse variety of rice, was being sold for Tk 1,070 to Tk 1,080 a maund compared to its previous price of Tk 1,040 to Tk 1,050.

A finer variety of miniket was selling for Tk 1,580 to Tk 1,600 a maund compared to its previous price of Tk 1,500 to Tk 1,550 on wholesale markets, traders said.

The traders also said paari was selling for Tk 1,100 to Tk 1,180 a maund yesterday compared to its earlier price of Tk 1,080 to Tk 1,160.

Retail prices of coarse varieties in the capital yesterday ranged between Tk 30 and Tk 32 a kilogram (kg) compared to their previous range of Tk 29 to Tk 31 while the retail prices of finer varieties ranged between Tk 40 and Tk 45 a kg compared to their earlier range of Tk 38 to Tk 43, market operators said.

Talking to The Daily Star yesterday about the fresh price hike of rice on local markets, General Secretary of Badamtoli and Babu Bazar Wholesale Rice Traders’ Association Nizam Uddin said the prices went up mainly due to a decline in domestic supply and in supply from India.

“A decline in prices of rice on local markets is dependent largely on the government’s decision and on the supply chain from India,” Nizam said.

He said more than 1,000 rice-laden trucks were stranded at Petrapole, resulting in the price hike of rice both on wholesale and retail markets.

Some shoppers complained that some unscrupulous traders are stockpiling sacks of rice speculating further price hikes of the staple due to the emergence of a fresh uncertainty in rice import from India.

Meanwhile, prices of edible oil also shot up abnormally in the city due to hoarding by a section of large scale traders, based on speculation that the prices of the commodity would go up again as yesterday was the deadline for the government to reschedule the prices of edible oil.

Hoarding of soybean oil on Saturday was so bad that the commodity was not at all available on any market in the city until yesterday, despite adequate supply of it. Meanwhile, the essential commodity had been sold in a secretive fashion at different markets in the city for astronomical prices on Saturday, the effect of which was still haunting the consumers yesterday.

Soybean oil was selling for Tk 114 to Tk 117 a kg yesterday on wholesale markets compared to its prices of Tk 107 to Tk 108 prior to the ultra hoarding of it on Saturday, while super palm and palm oil were being sold for TK 105 to Tk 107 a kg compared to their previous prices of Tk 104 to Tk 105.

Retail price of soybean oil was Tk 120 to Tk 130 a kg yesterday compared to its pre-Saturday price of Tk 108 to Tk115, traders said.

Retail prices of super palm and palm oil were Tk 110 to Tk 112 a kg yesterday compared to their previous prices of Tk 107 to Tk 108, the traders said.

A section of small traders in the city’s Moulvi Bazar said prices of edible oil registered a fresh hike on local markets due to hoarding of the essential commodity by a section of big traders and oil mill owners on speculation that the prices would be set higher by the government yesterday. But there was no new announcement from the government yesterday regarding edible oil prices.

On February 25, the government fixed maximum retail prices of soybean oil at Tk 106.50 a kg and of palm oil at Tk 98.50 a kg.

Talking to The Daily Star, President of Bangladesh Edible Oil Refiners’ Association MA Rouf Chowdhury said the prices went up despite a good supply because of a price hike on the international market.

“Price hike of petroleum oil on the international market affected the prices of edible oil both on domestic and international markets, because production and transportation cost had gone up,” Rouf Chowdhury said.

Country Manager of Malaysian Palm Oil Council Fakhrul Alam said more than 1 lakh tons of edible oil is scheduled to reach Bangladesh this month and the current stock is also at a safe level.

“It might be partially true that prices of edible oil went up on local markets following speculation that higher prices would be set by the government despite adequate supply,” he added.