The Effect of Price Hiking of Rice in Bangladesh

Topics: Middle class, Average, Lower middle class Pages: 7 (2076 words) Published: August 5, 2013
The Effect Of Price Hiking of Rice On Bangladesh

First of all, I would like to thanks Almighty Allah for helping me to complete this report properly and on time. I am also especially grateful to our honorable course instructor Professor Dr. Faruque Hossain for his kind and sincere guidance throughout these endeavors and to make my report best and much more knowledgeable. I would like to express my sincere gratitude and cordial thanks to friends, faculty student, parents for their kind guidance and providing needed information about my report despite of their enormous workload. It would have been quite impossible to carry on the report and give it a final shape without their help.

Table Of Content:

Title| 1|
Acknowledgement| 1|
Introduction| 1|
Research Background| 2|
Review of literature| 2|
Hypothesis| 2|
Objective| 2|
Research materials and method| 3|
Data presentation and analysis | 3-4|
Conclusion| 4|
References| 5|
Appendix| 5-6|

1. Introduction:

The recent increase in the price of food, especially rice, has been a cause of concern all over the world and has been critically important issue in Bangladesh; as a net importer of food, the price has closely followed the trend of international markets. The result of this unusually high rate of inflation has had a direct bearing on the poverty status of the country as the incidence of poverty is intimately related to the change in food prices due to the fact that food constitutes a considerable portion of the expenditure of the poor.

i. Background :

In the recent days price of rice is increasing day by day. Being a overpopulated the price hiking of rice has a major impact on food security particularly on the marginalized section of the society in Bangladesh. Recent rise in domestic cost of production of rice, together with high price in international market may boost further food inflation, leaving adverse effects on the poor.

ii. Literature Review:

Price fixing by marketer of Bangladesh and one class one stockiest partially responsible for recent high prices. Insufficient productive sector low contributions by agriculture in GDP as well as international trading discrimination are the factors of price hikes. The price of rice is rising rapidly since 2007 and climbed at the highest peak of the decade in 2008. Though, prices declined a bit in 2009 but again on track to rise from 2010 and till April 2013. The prices of coarse, medium and fine rice have been nearly doubled in 2013 than those of 2011 (Shakib, Shamsuddin, 2012) On their report The Unnayan Onneshan published (2011) that cost of Boro rice production may increase further by Tk. 1.30 to 1.50 per Kg due to increased cost of production of paddy by Tk. 0.90 per Kg. Aman paddy production may also increase by Tk. 0.70 per Kg, and as a result price of aman rice may witness an increase by Tk. 1.0 to 1.20 per Kg due to higher cost of fertiliser and fuel. According to the set price of rice, farmer will get an earning of only Tk. 131.28 from one bigha land. During January to December 2010, the wholesale average price of rice increased by 25% . At the same time the retail prices of rice have gone up by 20 %.

iii. Hypothesis:

There are many reasons behind this recent price hike of rice in Bangladesh. But I think formation of syndicate and corruption is the main reason behind this. But international market price, fuel cost, power crisis, natural disaster, transportation problem, illegal toll collection, action against corruption by the Government, political instability, lack availability of raw material, immoral stock of rice by some dishonest businessman, growth in domestic demand, lack of communication and co-ordination in between different Government officers etc are also responsible for recent price hike in Bangladesh. And the rate of this price hike is very fast. Even the...
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