Dhaka, Feb. 18 -- The interim government's decision to allow exports of aromatic rice ahead of the holy month of Ramadan has triggered a price hike in the local market.

Iqbal Rahman, a grocer on Sher Shah Suri Road in Mohammadpur, said major suppliers like Square Group, PRAN-RFL Group, Akij Group, and City Group raised prices from the first week of this month. He said prices started rising just before Shab-e-Barat on February 3.

Harun-ur-Rashid, a dealer of rice, edible oil, spices, and other consumer goods, in Mohammadpur said that continued exports and rising local demand ahead of Ramadan and Eid caused the price hike.

He said that six to seven companies dominate both the packaged and loose aromatic rice market. As demand typically i...