Unrest in Rice Market as Syndicate of 11 Mill Owners Manipulates Prices

The rice market in Kushtia’s Khazanagar, Bangladesh’s largest rice trading hub, remains unstable despite a bountiful harvest, with prices continuing to rise. The influence of 11 powerful automated rice mill owners, eight of whom are linked to the ruling Awami League, has created a monopoly that controls over 60% of the region’s paddy and rice reserves. This has resulted in a price hike of 4 BDT per kilogram for both coarse and fine rice varieties, sparking public frustration. Retailers report that coarse rice, priced at 48 BDT per kilogram just a month ago, now costs 52 BDT, while fine rice has surged from 68 BDT to 72 BDT per kilogram, defying expectations of a price drop following the new harvest. Farmers and experts argue that this price escalation is unjustifiable, as production costs, even accounting for profits, should not warrant such steep rates.

The situation highlights the dominance of mill owners like Abdur Rashid of Rashid Agro Food Products and Abdul Khaleq of Desh Agro Food, who leverage their political ties to manipulate the market. These individuals, many of whom hold key positions within the Awami League, are accused of hoarding large stocks of paddy and rice, artificially inflating prices, and sidelining smaller traders. Local administrative interventions, including monitoring and discussions, have failed to curb the price surge. Agricultural marketing officials emphasize the need for transparent pricing mechanisms based on actual production costs to prevent market manipulation. However, the entrenched monopoly, fueled by political patronage, continues to disrupt market stability, leaving consumers and small-scale traders at the mercy of a powerful few.