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The price of rice and wheat in the world market has started
to decrease. But the picture is opposite in the country's market. One week the
price of wheat is increasing and the next week the price of rice is increasing.
Last September, rice and wheat bought at higher prices from the world market
started arriving in the country. But it is not able to have any impact on the
market.
The government has given incentives to the private sector by
reducing tariffs to increase rice imports. Imports are not increasing, but this
is the first time that the price of flour has exceeded the price of rice in the
country's market. When the price of rice increases, buying and consumption of
flour generally increases among the low and middle income people of the
country. And when the price of wheat-flour increases, people increase their
dependence on rice. Common people are most at risk due to simultaneous rise in
the prices of two major food commodities.
Meanwhile, the Food and Agriculture Organization of the
United Nations (FAO) published this month's report on global food prices, says
that the prices of rice and wheat in the world market have started to decrease.
Prices of food grains such as rice and wheat fell by 3 percent between August
and September.
But in a press conference held by the Ministry of Food last
September, it was said that food prices will increase in the coming days
according to FAO's forecast. With that reasoning, the government made an
agreement to buy five lakh tons of wheat from Russia at the rate of $430 (per
ton). Although at that time Russia was selling wheat in the world market at the
price of 380 dollars. 100,000 tonnes of Russian wheat bought at a higher price
has already reached Chittagong port.
On Thursday (October 27, 2022), the report of the food
evaluation and evaluation committee of the Ministry of Food mentioned that the
price of Russian wheat is decreasing every week. In the last one week, the
price of Russian wheat fell by 9 dollars to 323 dollars per ton. If you do the
deal now, it will cost $401 including shipping and other costs.
According to the sources of the Ministry of Food, parboiled
rice is being bought from Vietnam at 521 dollars per ton and parboiled rice at
494 dollars per ton. In September, an agreement was reached to buy the rice at
78 dollars per ton more than the international market price. At the same time,
an agreement was signed to buy 100,000 tons of rice from India and 200,000 tons
from Myanmar.
But according to the food grain situation report of the
Ministry of Food on Thursday, the price of rice will now stand at $485 per ton,
including shipping and other costs from Vietnam. Rice imported from India and
Thailand will cost 420 and 468 dollars respectively.
That is, now if wheat and rice were bought from Russia and Vietnam, it would be 29 to 36 dollars less per ton.
Former Agriculture Secretary AMM Shaukat Ali said that
during price fluctuations in the world market, instead of making an agreement
to buy a lot of rice and wheat at once, import agreements should be made
gradually, so that when the price falls, the government can buy at a lower
price. As a result, the government should re-evaluate its agreements with
Russia and Vietnam. Dollars and Reserves – Spending extra dollars in this time
of crisis is not right.
In this regard, Secretary of the Ministry of Food Md. Ismail
Hossain said, "We are monitoring the current situation. However, the
Purchase Committee of the Cabinet has approved the procurement of rice and
wheat from Russia, Ukraine, India and Myanmar. We will bring up the issue of
price reduction in front of them.
Even though the price is decreasing in the world market, the
price of rice and wheat is increasing in the domestic market. According to
government agency Trading Corporation of Bangladesh (TCB), the price of coarse
rice has increased by more than 1 percent in the past one month. Coarse rice is
being sold at Tk 48 to Tk 52 per kg. And flour is being sold at 55 to 62 taka
per kg. The price of the country's second staple food has increased by 4 to 11
percent in a month.
Sources in the Ministry of Food said that along with Russian
wheat, rice consignments from India and Myanmar have also arrived at Chittagong
port. A ship with Vietnamese rice arrives at the port. Consignments of wheat
purchased through international tenders from Bulgaria and Ukraine have also
arrived at Chittagong port.
To increase the supply of rice and wheat in the market, the
private sector has been given various opportunities, including tax exemptions,
but the import has not picked up pace. The government last July allowed nearly
400 businesses to import 1.342 million tons of rice. So far traders have imported
only 1 lakh 80 thousand tons of rice.
So far credit has been opened for the import of 8 lakh 91
thousand tons. Out of which 2 lakh 9 thousand tons of debt has been settled.
The Ministry of Commerce has allowed them to import rice with duty free till next
December.
Chitta Majumdar, the owner of Majumdar Traders, one of the
rice importers in the country, said, "We are having trouble importing due
to the dollar-crisis and the increase in the price of rice in the Indian
market. But we are trying our best to bring rice on time.
The country's stock situation of rice and wheat has further
improved due to increased imports at the government level. As of Thursday, the
country's two main grain food stocks are about 1.6 million tons. Among them
there are about 14 lakh tons of rice and 1 lakh 80 thousand tons of wheat. The
current stock is said to be satisfactory from the Ministry of Food.
KAS Murshid, former director general of Bangladesh Institute
of Development Research (BIDS), said that the import of food products from the
global market has decreased due to the high value of the dollar and the reserve
crisis. Prices are also increasing. In such a situation, the dependence of poor
people on food like rice, wheat and potatoes increases.
Therefore, the government should make these foods readily
available in the market and increase food programs for the poor as well as cash
assistance programs. Otherwise the country's hunger and nutrition situation
will further deteriorate.
Source:
Online/SZK
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