Middlemen are widely blamed for a sharp rise in commodity prices which have hit hard low and middle income people across the country.
Prices of essential commodities from coarse rice to vegetables have surged in the kitchen market. The price of fine rice shoots up by 307 percent when it reaches consumers from farmers’ level.
A study conducted by Dhaka Chamber of Commerce and Industry (DCCI) recently showed that the price hike is not only limited to fine rice but also affects a wide range of items, including coarse rice, onion, ginger, garlic, rui fish, lentils, potato, green chili, turmeric and dried chili.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Administrator Mohammad Hafizur Rahman acknowledged that multiple stages of intermediaries get involved in the supply chain. “Reducing dependence on multiple middlemen could help bring down essential commodity prices.”
“The business community can find ways to streamline the supply chain and deliver goods at reasonable prices, eliminating middlemen,” he added.
Labour and Employment Secretary AHM Shafiquzzaman said that the cooperative model system has not yet been widely implemented in our country.
He argued that as this system has not been introduced, goods are changing hands five to six times, leading to price hikes.
DCCI conducted the study during the time between August 20 and 29, covering 49 districts under eight divisions. The data was collected from 600 producers and traders, focusing on 21 essential food items—12 locally produced, five imported, and four both locally produced and imported.
The study found that farmers feel the pinch despite high consumer costs. For instance, producing one kilogram of good quality coarse rice costs farmers Tk 26. Farmers sell this rice at Tk 32 per kg, but consumers have to purchase it for Tk 60, up by 215 per cent.
Similarly, there is a widening price gap between other commodities: fine rice has a Tk 40 price difference per kg, onions jump by Tk 40, rui fish by Tk 120, lentils by Tk 30, potatoes by Tk 29, green chilies by Tk 72, and turmeric by Tk 100.
AKM Asaduzzaman Patwary, Executive Secretary (Research) at DCCI, said that primary reasons behind current food inflation include a lack of coordination between the demand, production, and import levels of essential goods.
He also pointed to inefficient market systems, inconsistent data, reduced local production, high transport costs, and rising prices of fertilizers, pesticides, seeds, and oil. These factors collectively fuel inflation, affecting both the farmers and consumers.
Ghulam Rahman, former president of Consumers Association of Bangladesh (CAB), urged consumers to refrain from purchasing non-essential goods temporarily as a form of protest.
“This could help stabilise the market. To resolve this crisis, the supply situation must be normalized, and production costs reduced.”
He also stressed the need for enhancing competitiveness in the market to regulate prices.
