The prices of rice and wheat have started to fall in the world market, but the scenario in the local market is in stark contrast. If the wheat price rises in a week here, the rice price follows suit in the next week.

The falling trend of grains’ price in the global market failed to impact the local market as the country is now receiving the consignments that were bought in September at the higher price.

The government has slashed the duty on imports by the private sector in an effort to promote the import of rice. But the initiative seems to have worked a little. Rather, the flour price crossed that of rice at the groceries for the first time.

Generally, consumption of flour rises among the low and middle-income people whenever the price of rice jumps. And when the prices of wheat and flour rise, people increase their dependence on rice.

The people, this time, are in a dire strait as both the food items witnessed a sharp price hike at a time.

Meanwhile, the Food and Agriculture Organization (FAO) said in its monthly report on the global food prices in the current month that the prices of rice and wheat have started to fall in the world market. The food grains, like rice and wheat, registered a 3 per cent price fall from August to September.

The food ministry, at a press briefing in September, told the media that the food grain prices will soar in the coming days as per the FAO prediction.

Driven by the forecast, the government reached a deal with Russia to procure 500,000 tonnes of wheat at a price of USD 430 per tonne, though the country was then selling the food grain at a price of USD 380 per tonne in the world market. A consignment of the expensive Russian wheat has already reached the Chattogram port.

A report prepared by a food ministry committee described the situation, saying that the price of Russian wheat has been on a steady decline.

It fell by USD 9 per tonne to USD 323 last week. It would cost USD 401, including the shipping cost, if the procurement deal was signed at the current price, the report added.

by Iftekhar Mahmud in Prothom Alo, 30 Oct 2022
https://en.prothomalo.com/business/local/gpcu2hbcor