Low supply drives price increases as produce changes hands

The supply shortage and recurrent change of hand are the reasons behind the price hike of vegetables starting from the farmers to the consumer levels. The price of vegetables is now high on the production level also. The price increases several folds in the process of reaching the consumer level.

This information has been found after speaking to farmers, wholesalers and wholesale dealers. In addition to that, two of Prorthom Alo’s correspondents traveled from Bogura and Jashore on two vegetable-laden trucks to the wholesale market in the capital to find out how the prices go up in the supply chain.

Meanwhile, after visiting two wholesale and three retail markets in the capital on Monday it was found out that the prices of various types of vegetables increased by minimum Tk 15 to maximum Tk 60 per kg after changing hands for several rounds from wholesale to the retails levels.

On wholesale, long beans sold for Tk 80-90 per kg at Jatrabari and Karwan Bazar markets in the capital yesterday, Monday. The same beans went on retail for Tk 150 per kg at Shewrapara market of Mirpur and Town Hall market in Mohammadpur areas on the same day.

Reportedly, there are several more rounds of hand-change even after the produces have reached the capital from the wholesale markets of its place of production. Produces reach the consumers after changing hands at least four times starting from wholesale.

For example, the produces first go from the trucks to the wholesale markets and then bought by wholesalers from there. Later, retail vendors buy them from the wholesalers and then sell it to the consumers.

Businessmen concerned say that two to three middlemen get involved in between the four rounds of hand-change. The price goes up by Tk 2-8 or more in every step of the way.

For example, long beans sold for Tk 80 per kg in a wholesale market of Jatrabari on Monday. Later it sold for Tk 100 a kg to the retail vendors after two rounds of hand-change at the same place within the difference of just three hours.

Meanwhile, the directorate of national consumers’ right protection in a notification on this Saturday stated that trucks carrying vegetables from different parts of the country arrive at Karwan Bazar in the capital around 12:00 am every night. Later, the vegetables go from the trucks to the retail level after changing hands six to seven times.

Prothom Alo found out that a kg of local green chilli sold for about Tk 400 on wholesale at Karwan Bazar early on Tuesday. The same green chilli sold for Tk 600 per kg on retail at Mohammadpur Krishi Market. Similarly, bitter gourd that sold for Tk 64 on wholesale cost Tk 100-120 on retail and radish that sold for Tk 45-50 on wholesale became Tk 80-100 per kg on retail.

A wholesaler at Jatrabari, Sheikh Masud said the production and supply of various vegetables dropped from the incessant rainfall and floods in the last two months. As a result, the price of vegetables has increased even at the farmer level. Because of that they are also selling their produces at a higher price than before.

Meanwhile, commerce adviser Salehuddin Ahmed visited Karwan Bazar market in the capital on Monday evening. At the time he told journalists, “The prices of various produces like vegetables and egg are on the rise now. Even we are displeased with the issue of price hike.”

“We are trying to minimise consumers’ sufferings as much as possible. There’s a crisis of vegetable supply in the market. A lot of the vegetables have been destroyed in the floods. Now, if the production and supply are low no matter how much the market is monitored, the price cannot be reduced that much,” he added.

A farmer sold green chilli for Tk 370 per kg at Mahastan Hat market on Sunday. After that chilli arrived at Karwan Bazar on a truck at night and was sold for Tk 500 a kg on wholesale. The price went up by Tk 130 like that after changing hands twice.

Similarly, a kg of bitter gourd that sold for Tk 60 at Mahastan Hat was selling for Tk 80 at Karwan Bazar, eggplant of Tk 70 sold for Tk 90, cucumber and spiny gourd of Tk 60 sold for Tk 75, radish of Tk 50 sold for Tk 65, okra of Tk 75 sold for Tk 90 and long beans of Tk 40 sold for Tk 130. These vegetables sell for a price even higher at consumer level.

There was total 13 tonnes of vegetable including okra, papaya, long beans and cucumber on the truck that travelled from Mahastan Hat to Karwan Bazar. The truck reached Karwan Bazar around 1:30 am at night.

It was found after speaking to truck drivers, drivers’ assistant and people involved with the transportation of goods on different levels that before the political transformation in the country, Tk 1,000 of extortion money had to be paid on average per truck on the way from Mahastan Hat to Karwan Bazar.

Apart from that they had to pay a monthly fee for police token as well. While travelling with the truck, the Prothom Alo correspondent did not witness any incident of extortion on the way.

Truck driver Alam Hossain and his assistant Hridoy Mia said earlier they had to pay installments of extortion money to different parties including the police at Charmatha Bhober Bazar, Shajahanpur, Sherpur, Chandaikona and Kaddar Mor areas inside Bogura city. In addition to that, they had to pay more extortion money at Bangabandhu Bridge toll plaza, Tangail, Mirzapur, Kaliakair, Sacar and Aminbazar areas as well.

As soon as the vegetable truck parked in the alley of WASA building in Karwan Bazar, after travelling 240 kilometres of road in nine hours from Mahastan Hat, wholesale dealers gathered around. A bit later, the workers became busy with unloading the produces from the truck. Prices of the vegetables unloaded from the truck went up by 1.5 per cent than that of Mahastan Hat at the wholesale level within midnight.

Farmers sold local green chilli for Tk 370 per kg on wholesale at Mahastan Hat market this Sunday. Just a week ago, the price of the same chilli was Tk 180 per kg. Based on that record, the price has gone up by Tk 190 per kg on farmer level within the difference of a week.

Same way the price of bitter gourd increased by Tk 20 and sold at Tk 70 per kg, eggplant price increased by Tk 45 and sold at Tk 75, spiny gourd and cucumber prices increased by Tk 30 and sold for Tk 60, okra price increased by Tk 40 and sold for Tk 75, Papaya price increased by Tk 10 and sold for Tk 30 while long bean price increased by Tk 40 and sold for Tk 90.

A wholesaler of vegetables at Mahastan Hat, Mostafizur Rahman told Prothom Alo the supply of vegetables to the market is low now. Usually, there is massive supply of the early verities of winter vegetables at this time of the year. That’s why the prices are high.

It costs Tk 2.35 to transport a kg of vegetable from the wholesale market in Jashore to Karwan Bazar market in Dhaka. In addition to that, Tk 1-2 more is added per kg as the labour and packaging cost. That means it cost about Tk 4.5 to transport a kg of vegetables from Jashore to Dhaka.

Farmers sold per kg of pointed gourd for Tk 45-47 at Barinagar wholesale market in Jashore this Sunday. The same pointed gourd sold for Tk 60 per kg after arriving at the Jatrabari wholesale market in the capital. The price of that kept increasing by changing hands several more times after that.

Different types of vegetables including pointed gourd, radish, papaya, green chilli, eggplant and bottle gourd were transported form farmers’ fields to Barinagar market for sale on smaller vehicles Sunday morning. Wholesalers buy those vegetables, load them on trucks and send them off to different wholesale markets in different districts of the country including Dhaka.

The vegetable truck with which the Prthom Alo correspondent travelled from Jashore to Dhaka had eight tonnes of produces on it. The driver had to pay a total of Tk 2,240 as government toll on Madhumati Bridge, Bangabandhu Express Highway, Padma Bridge and Munshiganj Toll Plaza on the way from Jashore to Dhaka.

There was no extortion anywhere along the way. However, some local BNP leaders extorted Tk 100-200 per truck at Barinagar wholesale market. The truck fare from Jashore to Karwan Bazar was Tk 16,000. Overall, it cost Tk 4.5 to transport per kg of vegetable on that truck.

Farmer Abdul Molla from Daherpara village who sold vegetables at Barinagar wholesale market said the production of vegetable has dropped from the heavy rainfall this time. However, the high price is compensating for their losses.

A wholesaler buying vegetables at that market, Atiar Rahman said the supply of vegetables has been low for the past month. Usually, 50-60 trucks of vegetables were sent off from every wholesale market to different parts of the country at this time of the year. But, there are only 10-12 trucks of vegetables now. The price is also high for the low supply.

Deputy director of the department of agricultural extension in Jashore, Shushanta Kumar Tarafdar told Prothom Alo that the production of early verities of winter vegetable has declined by 25 per cent from the untimely rain this year.

The price of vegetable is high in the market because of that. The farmers however have started farming early verities of vegetables already. Hopefully, the supply would go up soon.