Middlemen eating into veg growers’ profit

    DOT Desk: Though the high prices of vegetables are putting pressure on the wallets of the consumers, the farmers are being deprived of fair prices as the supply chain is mostly controlled by the middlemen, reports The Daily Sun. Vegetables are dear in the kitchen markets even during this peak season for winter vegetables and though the farmers are selling their produce at much lower prices.
    Market experts blamed the system of multi-layered middlemen involved in the distribution process for the huge gap between the prices at the farm and the retail level. Vegetable prices are 100-300 per cent higher in the kitchen market than that at the farm level, according to data at the Department of Agricultural Marketing (DAM). The middlemen are bagging huge profits while the farmers struggle to realise the production cost, consumers and experts have said.
    Agriculture Minister Abdur Razzak earlier said people cannot afford sufficient vegetable intake due to high prices while the farmers are also not getting fair prices of their produces. The minister said farmers often throw away their vegetable after failing to realise the production cost due to low prices at the farm level. “We have to create a modern marketing system to eliminate this problem,” he said, adding that value- addition and developing the market chain are needed for this.

    Tomato was selling at Tk 40-80 per kg at the kitchen markets in the capital on 24 January against the wholesale price of Tk 14 per kg, according to the data of Department of Agriculture Marketing (DAM).
    It estimates that the logical retail price of Tomato should be Tk 17-22 per kg in the capital.

    Tomato is selling at Tk 12-16 per kg at different upazila level market in Sirajganj and the price is much lower at the farm level of the same district.

    Cauliflower is selling at Tk 30-50 per piece in the capital while it was traded at Tk 10 per piece at the wholesale market in the capital on January 24. DAM estimated that logical retail price of Cauliflower should be Tk 12-17 per kg in the capital.

    On January 24, cauliflower was traded at Tk 9-12 per piece at the kitchen markets in Mohanpur, Puthia and Rajshahi. This popular winter vegetable was selling at Tk 6-8 per piece at the upazila level markets in Sirajganj.

    Price of Bean was Tk 40-60 per kg at different kitchen market in the city while it was Tk 10 per kg at the wholesale market, according to DAM data. The department also estimated that logical retail price of bean should be Tk 12-24 per kg in the city.

    Price of green papaya was Tk 30-50 per kg at different kitchen markets in the capital against the wholesale price of Tk 8 per kg, official data suggest. The logical retail price of green papaya should be Tk 10-14 per kg in the capital, the DAM estimates.

    Price of eggplant was Tk 40-80 per kg at different kitchen market in the capital while it was Tk 12-20 per kg at the wholesale market. The logical retail price of eggplant should be Tk 14-24 per kg.

    Eggplant was traded Tk 6-8 per kg at different upazila level market in Jessore and Tk 10-12 at different upazila level market in Sirajganj on January 24.

    Price of carrot was Tk 40-60per kg at different kitchen market in the capital against the wholesale price of Tk 8-10 per kg. DAM estimates that the logical retail price of carrot should be Tk 9.6-12 per kg.

    Carrot was traded Tk 16-17 per kg at different upazila level market in Jessore and Tk 15-17 per kg at different upazila level markets in Meherpur on January 24.

    Price of potato (Holland) was Tk 30-40per kg at different kitchen market in the capital while it was Tk98-13 per kg at the wholesale market. The logical price is Tk 10-14 per kg. Potato traded Tk 12-14 per kg at different upazila level market in Jessore and Tk 12-14 per kg at different Upazila level market in Sirajganj on January 24.

    Retail prices of cabbage, turnip, radish, spinach, bottle gourd leaf, red amaranth, mustard and green amaranth are also much higher than the prices in the wholesale and farm level.

    Sources said farmers are selling winter vegetables at throw-away prices.

    Each year, farmers have to sell their winter vegetables at lower prices at the end of the season. The middlemen take full advantage of the situation to bag hefty profits.

    Farm economist professor Golam Hafiz Kennedy told the daily sun that the middlemen are gaining illogical profit as there is no control over them.

    “Farmers do not have the opportunity to directly enter the urban market. They have to depend on the middlemen to sale their produces,” he said.

    In 2017-18 FY, a total 159.543 lakh tonnes vegetable were produced in the country from 8.613 lakh hectors of land, according to Agriculture Ministry data.

    In the current 2018-19 fiscal year, the Department of Agriculture Extension (DAE) fixed a target to produce 164.59 lakh tonnes of vegetable from 8.72 lakh hectors of land. Farmers cultivated vegetables on 8.24664 lakh hectors of land this year.

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