Photo: Messenger
Corporate groups are increasing rice prices at will, without any rules or regulations. They are using two strategies to raise prices. The first is selling packaged rice under brand names. The second is direct syndication, colluding with some mill owners to increase the price of rice in 25 and 50 kg sacks.
The people of the country have become helpless in the clutches of this syndicate. Another worrying issue is that small mill owners are closing their businesses, unable to survive. Although the government is identifying these corporate groups, no action has been taken against the big ones. Taking advantage of this, they have been increasing prices year after year.
Among these groups are Akij Essential, PRAN-RFL, Rupchanda, Teer, ACI, Square Food & Beverage, TK Group, City, Ispahani, IFAD, and Meghna Group, etc. Additionally, among the mill owners are Rashid Agro Food Products, Mozammel, Erfan, Belcon Company, MS Raju Auto Rice Mills, Majumdar Auto Rice Mill, Johura Auto Rice Mill, Halal Agro Food Products, Kibria Auto Rice Mill, Khan Auto Rice Mill, Nurjahan Agro Food Products, Mofiz Uddin Auto Rice Mill, and Dada Auto Rice Mill.
According to information from the Consumers Association of Bangladesh (CAB), an organisation working for consumer rights, in the last ten years, the price of Swarna rice, a staple for the poor, has increased by 18 taka per kg. Paijam rice has increased by 16 taka. BR-11 and BR-28 rice have increased by 21 taka per kg.
The price of Miniket, a variety of rice for the middle class, has increased by 25 taka per kg. An even better-quality fine rice, Nazirshail, has increased by 28 taka per kg.
The price of Kataribhog rice, mostly preferred by the wealthy or upper class, has increased by 23 taka per kg. Another premium rice, aromatic rice, has seen various brands of Chinigura rice increase by 65 taka per kg. Additionally, Kalijira rice has increased by 23 taka.
According to CAB data, rice prices have increased 18 times in the ten years from 2014 to 2024. The most recent price increase was after the national election on January 7, 2024.
According to the government institution Trading Corporation of Bangladesh (TCB), on December 30, 2023, Swarna rice was sold for 48 to 50 taka per kg. Medium quality fine rice was sold for 50-55 taka. Fine rice (Miniket and Nazir) was sold for 60 to 70 taka per kg.
Earlier, centred on India's export ban issue in 2023, rice prices increased from July to August. Prices rose at the beginning of 2022, then again in July-August of the same year under the pretext of dollar value. Since 2014, this dishonest syndicate has looted thousands of crores of taka from consumers by repeatedly increasing rice prices through syndication.
Regarding the overall situation, S M Nazer Hossain, Vice President of The Consumers Association of Bangladesh (CAB), told The Daily Messenger, “In the past 10-15 years, whenever rice prices have increased, the main players were the corporate groups. Whenever they increased the price of 1 or 5 kg packaged rice under brand names, others also increased prices competitively. Dishonest businessmen have looted thousands of crores of taka from ordinary people by increasing prices every year.”
He explained, “First, the corporate groups collude to increase prices by 30-34 taka per packet under brand names. As soon as they increase prices, mill owners, wholesalers, and traders start a competition to increase prices. Businessmen have targeted different seasons, Eid, and various festivals to increase prices.”
Md. Ismiel Hossain, Secretary of the Ministry of Food, told The Daily Messenger, “Corporate groups are responsible for increasing rice prices. However, corporate groups, mill owners, or traders are not solely responsible.” Explaining his reasoning, the Secretary said, “Currently, 12-14 groups are involved in the paddy and rice business. They supply about 1-2 percent of the total demand. Therefore, they cannot manipulate rice prices alone.”
He added, “The rate at which rice prices have increased over the past two years is reasonable due to the global recession. The prices of commodities, including fuel oil and other products, have increased, causing food prices to rise as well. We are strictly monitoring the rice market. However, I have no comment on how prices increased 10 or 15 years ago.”
He also said, “Policies are being formulated for corporate companies to prevent corporate groups or mill owners from forming syndicates. Similarly, policies are being formulated for auto rice mill owners. These will be published soon.”
The Bangladesh Auto Rice Mills Owners Association, Bangladesh Rice Merchants Association, and Bangladesh Rice Mills Owners Association claim that 3 crore tonnes of rice are needed annually for the country's 18 crore people. Of this, mill owners produce 50 percent by buying paddy from farmers, while corporate companies produce the remaining 40 to 50 percent.
Mohd. Ishaqul Hossain Sweet, President of Bangladesh Rice Exporters Association, told The Daily Messenger, “The country's rice market is now completely controlled by corporate companies. Recently, the minister identified these syndicate members. If the government takes action against them, the market will benefit.”
Kawsar Alam Khan, Vice President of Bangladesh Rice Merchants Association and Joint General Secretary of Babubazar Badamtali Rice Wholesale Association, told The Daily Messenger, “After Eid, all types of rice, including Miniket and Nazirshail, have increased by 1 to 2 taka per kg. However, Basmati rice has increased the most, by 10 taka per kg.”
Blaming corporate companies and increased paddy prices for the hike, he said, “Corporate businessmen are profiting at will. They're making so much profit that you can't imagine. The price increase is due to government failure. If the government had monitored properly, corporate businessmen couldn't have increased prices at will.”
Amzad Hussain, President of Bangladesh Rice Mills Owners Association, said corporate institutions increase rice prices under brand names. “We're selling the same rice from the same paddy in the open market for 60 to 70 taka per kg. Corporate companies are selling it for 80 to 90 taka per kg by packaging it under brand names,” he said.
However, corporate groups claim they can't manipulate the rice market because they only produce 15 to 20 percent of the total rice in the market. The remaining 80 percent comes from farmers and mill owners. Therefore, it's not possible to control the entire rice market with 15 to 20 percent of the rice. However, they admit to increasing prices under brand names.
Kamruzzaman Kamal, Director of Marketing at PRAN-RFL Group, said, “Corporate companies produce only 1 to 2 percent of the demand. How is it possible to syndicate with just a 2 percent market share? I don't know about any syndicate.”
Johorul Islam, a marketing department official at ACI, told The Daily Messenger, “We are doing business with a good reputation. Premium rice prices are a bit higher because of packaging and other costs. You have to pay a little more for good quality.”
Biswajit Saha, Director of City Group, told The Daily Messenger, “I don't know about creating artificial crises by hoarding to increase prices.”
According to CAB data, the Bangladesh Awami League came to power promising 10 taka per kg rice. In the first year of power, 2009, the price of Swarna rice, a staple for the poor, doubled. In 2009, Swarna rice was sold at 27 taka per kg. In 2024, it's being sold at 55 taka. This coarse rice has increased by 28 taka per kg. During the same period, Aman paddy's Paijam rice increased by 27 taka per kg, almost doubling. This rice was sold at 29 taka per kg in 2009. In 2024, it's being sold at 56 taka per kg. Additionally, BR-11 and 28 rice were sold at 23 taka per kg in 2009. Now they're being sold at 57 taka per kg.
In 2009, Miniket rice was sold at 39 taka per kg. In 2024, it's being sold at 75 taka per kg. Nazirshail rice was sold at 38 taka. Now it's being sold at 85 taka per kg.
The price of Kataribhog rice was 62 taka per kg in 2009. Now it's being sold at 100 taka. Chinigura rice was 70 taka per kg. Now it's being sold at 170 taka. Kalijira rice was 65 taka. Now it's being sold at 120 taka.
Dwijen Ghosh, owner of MS Dwijen Ghosh Traders in Naogaon, said, “At the wholesale level, the best rice is being sold at 62 taka per kg. It's being sold at 3100 taka per sack (50 kg).” He said that selling rice at 62 taka requires buying paddy at 1400 taka per maund (a local unit of measurement). It costs 90 to 100 taka per maund to process this paddy into rice.
Rice that costs 62 taka per kg is being sold in the capital's open markets for 65 to 75 taka per kg. On Tuesday, visiting the capital's markets revealed that no rice is available below 60 taka per kg. BR 28 and 29 rice are being sold retail for 60 to 65 taka per kg. Miniket rice is being sold for 65 to 75 taka per kg. Nazirshail rice is being sold for 70 to 80 taka per kg. In wholesale markets, Miniket rice is being sold for 63 to 64 taka, and Nazirshail is being sold for 70 to 71 taka per kg.
However, corporate groups are selling the same rice in the capital for 90 to 95 taka per kg. This means that 5 kg packaged rice is being sold for 450 to 470 taka.
For example, the corporate company ACI is selling 5 kg of premium Nazirshail brand rice for 470 taka. Premium Miniket brand rice from this company is being sold for 450 taka. Another corporate entity, Teer Company, is selling 5 kg of premium Teer Miniket rice for 440 taka. Another domestic corporate group, PRAN, is selling 5 kg Miniket rice packets for 450 taka. The company’s 5 kg Nazirshail rice is being sold for 470 taka.
Similarly, Akij Essential, Rupchanda, Square Food & Beverage, TK Group, City, Ispahani, IFAD, and Meghna Group, among others, are strategically selling branded rice for 15 to 20 taka more per kg than in the open market.
Corporate companies are not limited to just 5-kg and 10-kg packets. These companies have now started selling rice in 25 kg and 50 kg sacks in the open market. They are constantly increasing their market share.
Ashik, a trader in Segun Bagicha market, told The Daily Messenger that rice prices have been increasing since the 2024 national election. It was supposed to be the peak season for rice, but prices are increasing day by day. He said that until last year, local brands like Mozammel, Rashid National, and Erfan sold more, but now sales of these brands have decreased.
Jahid from Jahid Store in Middle Badda informed that corporate group sacks of rice have started selling in neighbourhood areas of the capital. He told The Daily Messenger that they are selling Rupchanda Nazirshail rice for 82 to 85 taka per kg. However, if someone buys a 25 kg sack, they can get it for 2000 taka. When asked about Rashid Miniket rice, he said they are selling 25 kg sacks for 1780 taka.
Agricultural economist Professor Dr. Jahangir Alam, Director of Dhaka School of Economics and former Vice-Chancellor of the University of Global Village, said, “Behind the rice price increase, along with corporate companies, 20 to 25 big auto rice mill owners are also responsible. These auto rice mills and corporate companies form a syndicate to control the market. They increase rice prices at the mill gate itself. Some small mills are also involved; when the big ones increase prices, they sell at the same price. Corporate and big mill owners are plundering the market. If action is not taken against them, the rice market will not stabilise.”
On this issue, Khondaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), said, “Coarse rice is now 60 taka per kg, which hasn't happened in the last few years. Rice prices are now beyond the reach of poor and low-income people.”
According to the Ministry of Agriculture, the country needs 3.5 crore tonnes of rice annually for 17 crore people. The country produces 4 crore tonnes. This 4 crore tonnes of rice is produced from Aman, Boro, and Aus paddy. According to the ministry, this year's Boro production target was 2.25 crore tonnes of paddy, which has been met. Previously, 1.5 crore tonnes of rice were produced from Aman, and 10 to 15 lakh tonnes of rice were produced from Aus. Therefore, there is no concern about a rice shortage.
According to the Ministry of Commerce, the country's rice demand is 3.7 crore tonnes, while production in the 2022-23 fiscal year was 3.91 crore tonnes.
Messenger/Disha
