Arya News - The Daily Star obtained a copy of the report, which said middlemen hold significant dominance in the vegetable market, buying produce from farmers at low prices and selling it at high rates.
DHAKA – The dominance of middlemen, a lack of information, extortion , and unpredictable transportation costs have a significant impact, resulting in the high retail prices of vegetables, according to a recent Bangladesh Trade and Tariff Commission (BTTC) report.
On June 29, the BTTC sent the report to the Ministry of Commerce identifying problems in vegetable market management, recommending solutions, and seeking necessary action.
According to data from the Bangladesh Bureau of Statistics for 2024, the agriculture sector accounts for 11.52 percent of the country’s gross domestic product.
In order to prepare the report, a four-member team from the commission visited more than 20 wholesale and retail markets in the districts of Bogura, Gaibandha, Faridpur, Jashore, and Dhaka.
The Daily Star obtained a copy of the report, which said middlemen hold significant dominance in the vegetable market, buying produce from farmers at low prices and selling it at high rates.
Due to the lack of timely access to information on market demand, product pricing, and modern agricultural practices, farmers are often unable to make the right decisions at the right time, it said.
Vegetable traders have reported that vegetable-laden transport vehicles are extorted by “law enforcement agencies” and “private organisations” at key entry points to Dhaka, such as Jatrabari, Aminbazar, and Abdullahpur, it added.
However, they did not specify the amount of money extorted.
Truck rental costs vary depending on availability. For example, if a return trip fare cannot be secured, the rental charges increase, the report mentioned.
The report quoted a vegetable wholesaler in Bogura as saying that he faces extortion at at least seven spots on the road from Mahasthangarh Bazar in Bogra to wholesale markets in Dhaka.
Traders from Jashore and Manikganj have reported similar experiences.
The report also said traders are forced to pay a “market development fee” of Tk 1,200 to Tk 1,500 per truck, depending on the vehicle size, at wholesale markets in and near Dhaka.
This money is distributed among “government and non-government agencies”, political parties, and others, it added.
The report also mentions that middlemen play a big role in setting vegetable prices in Dhaka’s retail markets, and on average, a middleman makes about Tk 8,000 to Tk 10,000 each night.
However, they do not pay income tax because they do not exist in the taxation system, it said.
For this, the government loses a lot of tax revenue while consumers pay higher prices, it added.
Receipts are non-existent and trade is carried out verbally, enabling traders to frequently increase or decrease product prices at their own discretion, it said.
Although several policies related to proper agricultural market management have been formulated over time, they are not implemented due to a lack of effective coordination, it further said.
The number of cold storage and warehouse facilities for preserving vegetables is inadequate, making it difficult to store perishable goods properly during times of high yields, it added.
As a result, during such periods, farmers are often forced to sell their produce at prices lower than their production costs, it mentioned.
The report outlines several recommendations.
These include controlling middlemen, establishing government-run centres for buying and selling products at fair prices, taking appropriate measures to stop extortion, and strengthening highway patrols by law enforcement agencies.
One suggestion is constructing modern cold storage and preservation facilities in regions where vegetable cultivation is concentrated.
Talking to The Daily Star yesterday, Enamul Haque Sagor, assistant inspector general for media and PR at Bangladesh Police, said they have requested businesspeople to submit written complaints regarding extortion to the relevant police station.