TDS Desk:

The concerned mill owners and traders have been blaming the corporate institutions for the increase in the price of paddy and rice in the country. In this context, the government has taken the initiative to bring these institutions under control. No corporate body can buy auto rice mills without permission from the government. In addition, old rice mills cannot be bought and run under their name – the food ministry is going to bring such strict rules to prevent syndicates in the market.

HOW CORPORATE ORGANIZATIONS CREATE CHAOS IN THE MARKET

After the national election on January 7, the market of paddy and rice in the country suddenly became chaotic. The price of paddy has increased by Tk 200 to Tk 250 per mound, and the price of rice has gone up by Tk 8 to Tk 10 per kg despite bumper Aman paddy production.

In this context, three teams of the Competition Commission conducted investigations in the paddy-rice market in different areas of Kushtia, Naogaon, and Dinajpur districts. The investigation revealed the picture of syndicates in the paddy-rice market of corporate institutions.

A member of the investigation team said that in the districts of the country where rice is abundant, corporate organizations have purchase representatives. Rice is bought through them. They buy paddy and rice at higher prices and store them while many stocks more than demand.

The official said that the corporate organizations also compete in buying rice. After buying rice at higher prices they also sell them at a higher price. The rice which is sold at Tk 65-70 per kg in the open market, price of the same rice becomes Tk 80 to Tk 90 when it is packaged. That’s why it has an impact on the market.

He also said that they show an artificial shortage of paddy and rice by keeping them in warehouses. Besides, the market is also affected due to the purchase of paddy and rice at high prices. This is how chaos occurs in the market.

MINISTER OF FOOD SITS WITH THE CORPORATE INSTITUTIONS

On January 22, the Ministry of Food held a meeting with the corporate institutions. At this time, a meeting was held with the representatives of six organizations – City Group, Square, Pran RFL, Meghna Group, ACI, and Akiz Essential.

Addressing the delegates in the meeting, the Food Minister said, I sat in the meeting with the millers, they said that corporate organizations are buying and storing paddy in competition. The Millers point the finger at you.

He also said that corporate organizations add value and sell products in the market. That is why they are busy buying paddy from the market at high prices. Even buying a small amount of paddy from the market has a huge impact, forcing others to buy paddy at a higher price. This is bad for the market.

The food minister warned the corporate institutions and said that they should refrain from buying paddy by competing in the market. No exemption will be given for illegal storage beyond capacity.

INITIATIVE TO BRING RICE MARKETS UNDER CONTROL

Food Secretary Md. Ismail Hossain said that no corporate organization can buy auto rice mills without the permission of the government, especially the food ministry. It can’t be brought despite having money. One who wants to sell cannot buy (without permission), permission is required. Can’t directly continue old license as own license. He needs to get a new corporate license.

He also said that this is being done to control the corporate institutions. Control does not mean to stifle or harm them. Just to see how they are doing what they are doing, here to see if people are being cheated or not. We sat with corporate institutions. They agreed with us to stay within government regulations.