Rice market out of control due to lack of accurate information: Experts

Despite importing rice, the government has not been able to make much impact to reduce its price due to a lack of accurate data on production and demand, said experts at a programme yesterday.

A vested quarter has been exploiting this opportunity to control the market for extra profits, alleged the speakers at the webinar titled "Food Production, Import and Market Situation: Perspectives on the Right to Food," organised by Right to Food Bangladesh.

Right to Food Bangladesh and Palli Karma-Sahayak Foundation (PKSF) Chairman Dr Qazi Kholiquzzaman Ahmad presided over the webinar.

Md Shahjahan Kabir, Director General of the Bangladesh Rice Research Institute (BRRI),  said even after allowing the import of 17 lakh tonnes of rice, its price could not be reduced. This means that the market is being controlled by some people.

"An invisible hand is controlling it to make a super profit," he said. 

Dr Nazneen Ahmed, country economist at UNDP Bangladesh, said, "Most of the rice stocks are in the hands of the country's 50 largest auto rice mills, which are involved in big business. They are acting as a big influence in controlling the rice market without breaking the conventional law. As a result, steps have to be taken to amend the law regarding the food stock."

Food Minister Sadhan Chandra Majumder, chief guest at the event, said, "We have allowed 415 individuals and organisations to import 17 lakh tonne rice to control the rice market. But it is not having much effect, because there is some discrepancy in the information on production and demand. We will always be in danger if this discrepancy persists."

He further said, "I as the food minister cannot avoid its responsibility. We gave approval for importing 17 lakh tonne rice, but so far no more than 2 lakh tonne rice has been imported. And the imports will not exceed 3 lakh tonnes by 30 October, which is the deadline."

He said the actual information of production can be given by the Ministry of Agriculture. However, there is always 25-30 lakh tonne rice in the supply line, which should be excluded from volume of demand.

In addition, 50% of the seed distributed as incentives during the Aush season was not planted. But the government calculates production by including the return on this input. This is also a big reason for the shortage of production.

Besides, the government should also calculate how many Rohingyas are in the country and how many expatriates have returned to the country during the Covid-19 pandemic.

Shahanuare Shaid Shahin, senior correspondent of the Daily Bonik Barta, presented the keynote paper at the webinar.

His presentation showed that the dependence on rice and wheat production and imports is increasing. In FY17, the import dependence rate on rice and wheat was 16.58%, which stood at 17.81% in FY21. Bangladesh spent Tk3,160 crore on importing rice and Tk13,212 crore on importing wheat in the last fiscal year.

He also raised questions regarding the government's capacity to stock food grains. The government has the capacity to store 6% of the country's total rice production, but it procures less than 5% (18-20 lakh tonnes) of it. He suggested the people concerned to consider how much market control is possible with that.

BRRI Director General Md Shahjahan Kabir said 5.5% rice is being wasted during processing in the country.

The speakers at the event demanded the formation of a price commission to monitor the market and stop manipulation.

The rice market has been out of control since last Boro season. People still have to buy coarse rice at Tk50 per kg.

Food minister threatens to resign over allegations

As soon as Dr Nazneen Ahmed's speech at the webinar ended, an employee of Right to Food Bangladesh said the minister himself owns a rice mill.

Hearing the allegation, Food Minister Sadhan Chandra Majumder got angry and wanted to know who made the comment.

He said, "I don't want to run the ministry with this stigma. If necessary, I will leave the ministry."

"If you want, I will resign now. I also think I should leave this webinar," the minister said.

The minister later explained that he is a farmer and grew up in a farmer family. He had to hear the allegations of being a "rice trader" many times and it saddened him.

"There is no rice mill in my area Niyamotpur," the minister said, denying the allegation.

Right to Food Bangladesh official Subal Sarkar, who made the comment, later apologised to the minister.

Right to Food Bangladesh Chairman Qazi Kholiquzzaman also apologised over the incident.