Veg price paradox: Farmers lose while consumers pay more
The price of winter vegetables like cauliflower has drastically fallen in production areas, leaving farmers at a significant loss despite higher prices in urban markets. In production areas, cauliflowers are selling for as low as Tk 2-5 per piece, while in Dhaka, they fetch Tk 15-30 after changing hands multiple times. Farmers, however, see no profit, often incurring losses.
A broken marketing system
Agricultural experts suggest that farmers could secure fairer prices if they were integrated into a direct marketing system or if the government implemented structured measures, such as dividing cultivation areas, setting advance prices, and establishing official marketing systems akin to those in other countries.
Agricultural economist Jahangir Alam Khan emphasises the inefficiency of the current supply chain, where vegetables change hands 5-6 times before reaching consumers. He advocates reducing the distance between farmers and consumers to ensure fair prices during peak seasons.
Dismal prices in production areas
Farmers report alarming conditions in regions like Jashore and Pabna. On Tuesday (January 7), cauliflower sold for Tk 5 taka per kilogram in the Pabna wholesale market, down from Tk 25-30 just a week earlier. In Jashore's Churamonkati wholesale market, cauliflowers were priced as low as Tk 1-5 per piece, prompting local traders to discourage further supply to avoid saturation.
Billal Hossain, a farmer from Jashore, claims wholesalers are manipulating prices through syndicates. "Despite demand in city markets, wholesalers tell us our produce is worthless," he said.
Shahin Hawlader, a farmer in Joypurhat, is facing similar challenges. Unable to cover labour costs, he has stopped harvesting beans from his fields and is shifting focus to planting onions.
Mismatch between city and rural markets
While farmers struggle in production areas, vegetables remain costly in Dhaka. Retail prices for cauliflowers range from Tk 15-30 taka per piece, with beans, radishes, and tomatoes similarly priced higher. Karwan Bazar wholesalers attribute the disparity to transportation costs and market dynamics.
Imran Master, president of Karwan Bazar Small Shopkeepers, noted, "Supply is higher than demand, especially for cauliflowers, which have been cultivated in abundance. Transportation costs also add to the price difference."
Underlying issues
Agricultural experts and policymakers highlight systemic problems:
Lack of storage and alternative uses
Farmers lack proper storage facilities, forcing them to sell their produce immediately, often at low prices. Professor Dr Taj Uddin of Bangladesh Agricultural University suggests exploring alternative uses for vegetables, such as preservation and value-added products, to stabilise prices.
Uneven production and regional quotas
Overproduction in concentrated areas leads to price crashes. Experts propose setting regional production quotas and advance price mechanisms, as practiced in countries like Japan.
High transportation and middlemen costs
Former Agriculture Secretary Anwar Faruk points to high transportation costs, road tolls, and excessive profiteering by middlemen as key issues. He calls for reducing these costs to protect both farmers and consumers.
Proposed solutions
Regional crop planning: Prevent simultaneous overproduction by setting quotas for specific crops in designated areas.
Direct farmer-consumer sales: Expand farmers' markets and promote direct sales channels to reduce middlemen involvement.
Value addition: Invest in processing facilities to preserve surplus produce and create new revenue streams for farmers.
Government intervention: Introduce structured systems for pricing and marketing, ensuring fair prices for farmers.
Without immediate reforms, the current system will continue to harm farmers while disproportionately benefiting middlemen, exacerbating rural poverty and food waste.
