Middlemen making big profit

50-180 pc vegetables price gap found between villages and city markets

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Anisul Islam Noor :
The middlemen are consistently eating up most of benefits as both the farmers and consumers are deprived of the gradual rise in production of winter vegetables in the country.
Data of the government agencies showed a 50-180 per cent gap in vegetable prices at farmers’ level and in the city’s kitchen markets this winter.
This reporter visiting some kitchen markets also found a 30-60 per cent price gap between the city’s retail and wholesale markets, which is further increasing the vegetable prices.
According to experts, production of winter vegetables has been gradually increasing in the country for nearly a decade amid increase in demand, development in varieties, and available seed supply due to various initiatives of the public and private sectors.
The output of nutritious crops cultivation witnessed difficulties for floods and subsequent water-logging in September-October period this year. But it increased significantly in November with drying up of arable lands, said Chaitanya Kumar Das, Director at Field Service Wing of Department of Agriculture Extension (DAE).
He said vegetable production in Robi season (winter) now stands at above 7.2 million tonnes (FY 16), which is 60 per cent of the total production. Winter vegetable output has been maintaining a 3-10 per cent growth year-on-year basis in a decade.
Horticulture Wing of DAE data showed that more than 35 kinds of vegetables are grown in winter season – from October to March – of which cauliflower, winter brinjal, cabbage, cucumber, tomato, winter bean, pointed gourd, radish, carrot, coriander leaf and dozens of leafy ones are major.
The data also showed that Dhaka city consumes 30-35 per cent of vegetables that the country produces.
According to traders of Karwan Bazar, Jatrabari, Shyambazar, Sadarghat and other five wholesale markets in the city, usually 650-700 trucks and pickup vans loaded with 7,000-7,500 tonnes of vegetables enter the metropolis per day.
The volume increased to 9,500-10,000 tonnes a day in November-January period thanks to notable rise in production of winter vegetables.
Md Abdul Hannan, vice-president of Jatrabari Kanchamal Aratdar Samity, an association of wholesalers, said the supply of vegetables was lesser last month, but it has increased significantly in the current month.
He said, now 100-120 trucks and pickup vans, especially from Comilla, Narsingdi, Munshiganj and southern districts, are daily entering Jatrabari kitchen markets, whereas the number was 70-80 in November.
President of Uttar Karwan Bazar Babosayee Janokalyan Samity, another association of wholesalers, Haji Hafez Khan said 280-300 vegetable-laden trucks are coming to their market everyday from northern, south-western and central districts.
He said, there is no shortage of supply now, which they observed from October to mid-November period.
However, despite significant increase in supply, the prices of winter vegetables have not declined to the consumers’ expected level this year.
In the city markets, cauliflower and cabbage, most demandable winter vegetables, are selling at Tk 30-45 per piece, based on size. Radish is selling at Tk 30-35 a kg, brinjal at Tk 40-60, bean at Tk 50-60, seasonal tomato at Tk 60-80, and coriander leaf at Tk 150-180 a kg.
Different varieties of leafy are selling at Tk 8-30 a bunch in the city’s retail markets, including Muhammadpur, Farmgate, Karwan Bazar (retail), New Market, Hatirpool Bazar, Fakirerpool Bazar and Nowabganj Bazar.
According to the latest data of the state-run Department of Agricultural Marketing (DAM) on November 20, the prices of vegetables have been found a huge gap between their prices at farm level and the city’s retail level.
DAM assistant director T M Rashed Khan told The New Nation on Tuesday that winter crops are selling at 50-180 per cent higher rate in the city’s retail markets than those in villages.
He said a medium-sized cauliflower is trading at Tk 11-13 on Narsingdi farm premises, which is selling at Tk 22-24 at Karwan Bazar.
The country now exports vegetables worth Tk 8.40 billion (US$ 105 million) annually, Export Promotion Bureau (EPB) data showed.
Bangladesh Institute of Development Studies (BIDS) Senior Research Fellow Dr Nazneen Ahmed said four levels of mediators between vegetable growers and city consumers are responsible for raising their prices.
She said the chain-shops have been able to remove three stages of middlemen, which are benefiting consumers to some extent. But an inclusive market system should be developed, where farmers will have scopes to sell crops directly to consumers.
Increase in number of super-chain shops, orientation of big kitchen markets by both the public and private sectors in the cities in line with the chain-shops, and direct linkage between farmers and exporters can give profits to both growers and consumers, she commented.
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