Editorial, News & commercial office:
55/A, H M Siddique Mansion (Level-7), Purana Paltan, Motijhel C/A, Dhaka-1000. Phone: +8802226640056,
e-mail: [email protected], [email protected]
Multiple layers of intermediaries and heavy dependence on urban wholesalers are major factors behind the wide gap between farm gate and retail prices of essential food commodities in Bangladesh, a study by the Centre for Policy Dialogue (CPD) revealed on Thursday.
The findings were presented at a seminar titled ‘The Food Price Chain: Markets, Margins and Intermediaries in Bangladesh,’ held at the BRAC Centre in the capital with CPD Executive Director Fahmida Khatun in the chair.Foqoruddin Al Kabir, Senior Research Associate of CPD, presented the keynote paper, which traced the supply chains of 10 essential food commodities: rice, lentil, onion, potato, green chilli, brinjal, egg, beef, fish and chicken, from retail markets back to producers, covering 10 markets in Dhaka Division and 820 market agents.
The study found that prices rose between 10 percent and 116 percent from farm gate to retail depending on the commodity, with green chilli recording the steepest escalation at 116 percent, followed by onion at 87 percent and rice at 100 percent.
Commodities with shorter supply chains, such as eggs, chicken, beef and Rui fish, showed comparatively lower price margins, while those with longer chains, involving middlemen (farias, beparis, aratdars), millers and wholesalers before reaching retailers, saw larger price increases.
According to the study, urban wholesalers emerged as the primary procurement source for six of the 10 commodities surveyed: onion, potato, green chilli, brinjal, egg and Rui fish, a concentration that the researchers said could heighten bargaining power imbalances and price volatility, particularly if disruptions, hoarding or collusion occur at that level.
The paper further noted that supply shortages, trader collusion and hoarding were cited most frequently as causes of high prices, while commission payments were evident across market agents for onion, brinjal, green chilli, fish and beef.
In the case of chicken and beef, farmers recorded negative net marketing margins, driven largely by high feed costs, the study said.
Speaking at the event, Fahmida said low-income households in Bangladesh are spending nearly all of their savings just to keep food on the table amid soaring prices of essential items, warning that this is taking a heavy toll on overall living standards.
She said persistent inflation is severely undercutting savings, healthcare access, essential services and the quality of life for lower-income families.
Fahmida described the market dynamics behind rising food prices, spanning production, supply chain bottlenecks and demand, as caught in a vicious cycle, pointing to the steep gap between the prices farmers receive at the farm gate and what consumers ultimately pay at retail.
She said food inflation has been the primary driver of the country's elevated overall inflation over the past four to five years, and cautioned that unless it is brought down to a manageable level, it will cripple the economy and hit ordinary citizens hardest.
The CPD study recommended reducing unnecessary layers between farmers and consumers, increasing competition in wholesale markets, expanding market choices for farmers and retailers through cooperatives and direct linkages, and improving transparency of prices and market information.
It also called for stronger monitoring against collusion and hoarding, investment in storage and cold-chain infrastructure, and measures to ease production cost pressures faced by farmers, particularly for feed and veterinary services.
https://thedailyexpress.news/news/business/1f18be90-4c3f-6cf0-a3b8-bd38f3b3423c