DHAKA: A network of shops selling discounted rice to poor Bangladeshis has had to close because of a lack of stock, the military unit running the stores said on Wednesday.

Thousands of residents in the capital Dhaka, mainly the very poor, used to queue up daily in front of the 75 outlets run by the paramilitary Bangladesh Rifles (BDR) to buy rice at cheaper rates as price nearly doubled over the past year.

“We have no rice left to sell now,” said Colonel Mujibul Haq.

“We cannot procure rice from the farmers as the government is already running a similar drive to build a buffer stock.

Once it ended, we hope to procure rice again and sell it at discounted rate,” he said.

Prices spiralled in Bangladesh domestic markets following floods and a cyclone that destroyed around 3 million tons of rice, the country’s main staple, last year and in the wake of a global spike in food and fuel prices.

One kg of rice was sold at 40 taka (58 cents) early this year, almost twice the price in middle of last year, according to official figures.

To calm down the market and ease the pressure on poor, who were hard-pressed by the soaring price, BDR started selling rice at 25 taka ($36 cents) per kg, which gained huge popularity.

Last week BDR raised the price by 5 taka per kg before gradually shutting down the discount shops citing end of stock.

Different grades of coarse rice were selling at up to 35 taka on Tuesday, buyers said on Tuesday.—Reuters