Rice price hike baffling
The domestic production of rice has increased substantially, while the price in global market has been stable, if not reduced. Yet, the domestic market has experienced an unexplained hike in the price of rice. Apparently, a report also found that the price hike occurred in the wake of and in the aftermath of the recently concluded election. Although the big millers have slightly reduced the price for the wholesale market after a meeting with the commerce ministry, the price cut hasn't impacted the retail market.
This, therefore, points to the only remaining culprit: a coordinated collusion among big mill owners. This sort of collusion severely hurts consumers and market competitiveness. The only way to maintain a stable rice market is to clamp down on such collusion heavily.
According to official statistics, the production of rice has increased by seven percent in the 2017-18 fiscal year, during which as much as 42 tonnes of rice was imported—a volume that dwarfs the previous year's import. Yet, the price of rice during the election season increased by more or less 5-8 percent.
Such a hike does not support our farmers at all. But it surely does hurt consumers—especially low-income families, a large percentage of whose income is spent on food.
The government must have a rigid market monitoring apparatus in place so that the price of rice remains stable and no artificial crisis is created by the millers and hoarders. Strident actions should be taken against unscrupulous traders and importers whose greed and lust for profit deeply troubles the poor portion of our population. To mitigate the situation, the government should also provide rice to these people at a subsidised price through open market sale.
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