In Bangladesh, a glaring discrepancy exists between the prices farmers receive for their vegetables and what consumers end up paying in Dhaka's urban markets. This issue primarily stems from the dominance of middlemen within the supply chain, who inflate prices through successive profit margins. For instance, while consumers in Dhaka might pay between $0.29-$0.35 for a cauliflower, the farmers are only receiving about $0.05 for each.
During a survey of various kitchen markets in Dhaka, cauliflowers were observed selling for $0.29-$0.35 each, a stark contrast to the $0.05 price farmers receive in different districts, often falling below their production costs. This disparity has led some farmers to destroy their crops as a last resort.
Nazer Hossain, vice-president of the Consumers Association of Bangladesh (CAB), attributes the hike in vegetable prices in urban areas to the chain of middlemen involved before the produce reaches the consumer. This situation highlights a significant issue in the agricultural supply chain, with farmers struggling to cover even the basic costs of harvesting.
In Dhaka's retail markets, the price discrepancy is evident across various vegetables, with onions, potatoes, and green chilies selling for double or more their wholesale prices. Kased Malitha, a farmer from Saharbati village, shared his experience of not being able to cover the transportation costs of his cauliflower crop, underscoring the financial strain on farmers.
The large-scale production of winter vegetables, including cauliflowers, has resulted in heavy losses for farmers in Meherpur, forcing them to use the unsold produce as cattle feed or let it rot in the fields. Despite these challenges, direct purchases by a superstore from farmers in Gobipur village offer a glimmer of hope, although the prices paid are still below the desired rate.
Experts point to the crucial role of middlemen in exacerbating the financial plight of farmers. Agro-economist Jahangir Alam Khan emphasizes the need for regulatory measures and organized market structures to mitigate this exploitation and ensure farmers receive fair compensation for their produce.
Source: Daily Sun