Record harvest, big imports – yet rice prices jump 11%-16% YoY

Despite record Boro rice production in Bangladesh, prices have sharply increased by 10-16% compared to last year. This is impacting low-income families, and is attributed to market manipulation by traders who stockpile rice, leaving the government with insufficient reserves to stabilize prices. While the government imported a significant amount of rice and claims to be addressing the issue, the high prices persist due to factors like increased input costs, post-harvest losses, and supply chain disruptions. Experts criticize the lack of effective market intervention and regulatory oversight.

Bangladesh is experiencing a paradoxical situation: record Boro rice production in 2025, yet soaring prices. Fine rice is 15.94% more expensive than last year, medium-quality rice 16.07%, and coarse rice 10.58%. This increase, particularly impacting low-income households, stems from a complex interplay of factors. While the Boro harvest yielded the highest paddy production ever, traders, holding over 10 million tonnes of rice, are stockpiling to manipulate the market, contrasting with the government's limited 1.4 million-tonne reserve. Despite increased imports (13.05 lakh tonnes in FY25, second highest historically), retail and wholesale prices remain high. Contributing factors include increased input costs, estimated 26% post-harvest losses, high transport costs, and market volatility. Experts point to a lack of government intervention and regulatory oversight, allowing traders to profit excessively. The situation highlights the need for improved market regulation and increased government reserves to stabilize rice prices and ensure food security.