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The study suggested that rice owners should
reduce the price of rice at the mill gate.
• In 2019, a laborer could buy 13 kg of
rice with daily wages.
• This year they can buy eight and a half
kg of rice.
• Medium rice buyers tend towards coarse
rice.
The rice market in the country changes hands five times to
reach the consumer stage. Costs and profits add up every time a handover
occurs. Rice mill owners are making the most unusual profits among them.
They are making a profit of 8 to 13 Taka 66 paisa per kg of rice and its
by-products.
The by-products produced from paddy to rice are sold
separately by the rice mill owners. They are not reducing the price of rice
even though they are making extra profit. Rather, if the price of rice
increases in the retail market and the price of rice in the market increases,
they increase the price of rice at the mill-gate on that occasion. This
information has come from a recent study by Bangladesh Rice Research
Institute (BRRI).
The study titled 'A Study of Rice Price Increase in
Bangladesh: Farmer-to-Consumer Status' was led by the Department of
Agricultural Economics, Bangladesh Rice Research Institute.
According to the study, 600 to 650 grams of rice is obtained
per kilogram of paddy. Rice mill owners show a profit of Tk 1 to 2 on that
amount of rice. But the rice husks, broken rice and the upper part of the rice
which is produced as a by-product after breaking the paddy are sold by the rice
mill owners at the rate of Tk 6 to 9 per kg. As such, mill owners are making
extraordinary profits. The study suggested that rice mill owners should reduce
the price of rice at the mill gate.
BRRI Director General Shahjahan Kabir said, 'We have done
the research by maintaining international standards to understand the reason
for the increase in the price of rice in the country. Reviewing other studies
on the rice market, we have seen that prices are rising rapidly mainly because
of the mill owners. As a result, rice mills should account for how much they
are buying paddy, how they are turning it into rice, and how much profit they
are making on the paddy and its by-products. And the food ministry should take
the initiative to reduce the mill-gate price of rice based on discussions with
rice mill owners.
For the research, the agency has taken the information and
technical assistance from the Directorate of Agricultural Extension,
Directorate of Agricultural Marketing, Department of Food Classification and Evaluation
of Food Ministry, Food and Agriculture Organization of the United Nations (FAO)
and International Rice Research Institute (IRI). Technical assistance in the
research was provided by Homnath Bhandari, representative of ERI-Bangladesh and
Professor Jahangir Alam, Department of Agricultural Economics, Bangladesh
Agricultural University.
When asked to know, the General Secretary of Bangladesh Auto
Major and Husking Mill Owners Association, the central organization of rice
mill owners of the country, KM Layek said, "The information that the rice
mill owners have taken unusual profits in the research is not correct.
Because mill owners invest money in various sectors starting from taking loans from banks to running a mill. If we had made that much profit, then 90 percent of Rice-mill Malik would not have defaulted on the bank. Most of the country's rice mills were not closed. Therefore, researchers should conduct research with better scrutiny.
In the field survey, per capita consumption of rice, or how
much rice each person eats on an average day has been calculated. It showed
that before Corona in 2019, an average person ate 384 grams of rice a day.
After the start of Corona, it increased to 405, 411, and 409 grams in 2020, 2021, and 2022. Out of this, the consumption of rice by people in villages has
increased by 6.13 percent and in cities, it has increased by 4.48 percent.
Explaining the reasons behind the consumption of coarse
rice, the study said that the country's below-poverty population is most at
risk due to rising rice prices. In 2019, a laborer could buy 13 kg of rice with
his daily wages. In 2022 it decreased to 8.5 kg. 10 percent of buyers of medium-quality rice tend to buy coarser or lower-quality rice due to higher prices. As
a result, the price of coarse rice in the market is also increasing regularly.
Assessing the food situation, the study said, increasing food production in the country or increasing supply by importing as per requirement does not ensure food security for all. To do this, the purchasing power of people should be increased or food products should be made available to people through social security programs.
Economist M Asaduzzaman, former research director of BIDS,
Bangladesh Development Research Institute, said that the government should
clarify what initiatives it has taken to establish control over rice mill
owners. The Food Ministry should also investigate the reasons for the price
hike. People are consuming more rice due to rising prices of flour, oil, pulses
and other commodities. Due to this, the price of rice may increase. As a
result, there should be an assessment of how food prices are impacting the poor
people as a whole, where and how much the prices are increasing. Then the
government needs to take action in this matter.
Experts say that a person needs to eat a maximum of 350
grams of rice per day to grow and live healthily. If it is more than this, it is
harmful to the body, which reduces the working power of people and increases the
risk of various diseases including diabetes, and high blood pressure.
The agency surveyed 2,028 people between February and June
this year. Most of them were farmers and consumers. The study was conducted by
evaluating data from group discussions, interviews and other public-private
research.
It is said that in 1971, 1 crore 5 lakh 90 thousand tons of
rice were produced. This year it will be 3 crores 60 lakh tons. It has been
mentioned that rice production is increasing at a higher rate than the country's
population growth, and the country has enough rice as per the requirement.
The study showed that out of the total 3 crores of 60 lakh tons
of rice produced in the country throughout the year, about 62 percent of the
rice is sold in the market. Out of this, a maximum of 66.2 percent of Boro
season rice is sold in the market. Among them, in 2019-2020, there was a
shortage of rice in the market after the impact of Corona. Apprehensions or
rumors are created about prices and stocks. In this, big farmers and traders
slowly release rice in the market. As a result, there is a shortage of rice in
the market and the price increases. The government's collection drive failed.
Research has shown that there are five parties involved in the rice-rice business in the market. Firstly the farmer himself, secondly the
fariyas, thirdly the artaddars, fourthly the paddy owners, and fifthly the rice
retailers. Out of this, the fairies get the least. They make an average profit
of 50 to 65 paisa per kg of paddy. Arat owners make a profit of up to 1 taka 75
paisa per kg. Their expenses include rent of shops and warehouses, electricity
bills and wages of workers.
The study identified paddy owners as the most influential
parties in the paddy-rice market. They invest huge amounts of money in this business.
They spend other expenses such as buying machinery for making rice from paddy,
buying rice, keeping it in the warehouse, electricity bills, wages of workers, and marketing expenses. They make a profit of 8 takas to 13 takes 66 paise per kg of
rice.
Retailers buy rice from wholesalers and sell it to customers
in stores. They make the least profit by selling coarse rice. More profit is
made with thin and better-quality rice. Coarse rice makes a profit of Tk 2 to 7
in Aman season and Tk 3 to 4 61 paise in Boro. The main expenses of such
traders are shop rent, employee salary, and other expenses.
According to the research, the farmers earn 2 to 4 and a
half per kg of paddy. But this excludes land rent and the farmer's own labour.
If the calculation of these two sectors is added, the profit of the farmer is 1
to 2 taka per kg.
When attention was drawn to the data of the study, Palli
Karma-Sahayak Foundation Chairman and Economist Kazi Khalikuzzaman Ahmad said
that rice farmers have become much stronger than before.
Being financially, socially and politically powerful, they
have established control over the rice market by investing heavily. The food
ministry should take the initiative to reduce the price through discussion with
the rice farmers and pressure if necessary.
Source:
Online/SZK
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