Paddy prices hit three-year low in Naogaon

NAOGAON, Sept 13: Paddy and rice prices have been falling in Naogaon, one of the country's largest rice-trading hubs, as supply exceeds demand and stocks of imported rice remain ample.

While falling rice prices have brought some relief to consumers, the sharp decline in paddy prices has left local farmers facing mounting losses and disappointment.

Prices of different varieties of rice have fallen by Tk 1-2 a kilogram over the past one to two weeks. Paddy prices have also dropped compared to the same period last year.

Aush varieties, including Parija and BRRI Dhan-48, are now selling for Tk 700-800 a maund, down from Tk 800-850 a week ago. At the same time last year, the varieties fetched Tk 1,000-1,050.

Katari paddy, produced during the last Irri-Boro season, is currently selling for Tk 1,600-1,700 a maund, compared with Tk 1,800-1,900 last year.

Jeera paddy is selling for Tk 1,200-1,300 a maund, down from Tk 1,600-1,700 a year ago. Thus, the price of Jeera paddy has fallen by as much as Tk 400 a maund.

Rice prices have also declined. At the Naogaon wholesale market, Jeera rice is selling for Tk 56-61 a kilogram and Katari rice for Tk 73-74. Traders said prices of these varieties have fallen by around Tk 2 a kilogram in a week and Tk 3-5 over the past month.

Swarna, a variety of coarse rice, is now selling for Tk 42-44 a kilogram, compared with Tk 46-48 a week ago.

Farhad Hossain Chakdar, General Secretary of the District Rice Mills Owners' Association, said rice imports during the interim government exceeded domestic requirements, leaving the country with ample stocks.
“As a result, demand for rice at the wholesale market has fallen. Paddy and rice prices are now at their lowest level in three or four years,” he said.

With weak demand for rice, millers have reduced paddy purchases, causing Aush paddy prices to fall sharply, he said.

“The government should procure rice or paddy during the Aush season as well to ensure farmers get fair prices,” Farhad said.

He said traders were selling rice to buyers in Dhaka and Chattogram even at losses of Tk 1-2 a kilogram because of weak local demand.

Meanwhile, district officials have warned millers against compromising rice quality and safety.

At a meeting with rice mills owners in the deputy commissioner's conference room on Saturday, Deputy Commissioner Mohammad Saiful Islam said there were allegations that artificial flavouring was being added to rice.

“This kind of fraud must not be committed under any circumstances,” he said.

He also instructed millers not to use the harmful chemical hydros to whiten rice.

Officials encouraged millers to purchase paddy to help farmers secure fair prices. They also assured millers of government support if they set up private bio-fuel plants using low-demand paddy varieties such as Aush.

District Food Controller Farhad Khondkar said the country currently had adequate rice stocks, and there was no likelihood of rice prices rising over the next three months.

“There is no supply crisis. If any trader tries to create an artificial shortage by illegally hoarding rice and raising prices, strict action will be taken,” he said.

He said authorities were also considering ways to help farmers recover production costs amid falling paddy prices, including government rice procurement during the Aush season and encouraging bio-fuel production from paddy.