The traders were returning to their neighbourhood after buying vegetables from the wholesale market in Manikganj’s Jaagir.
Detective Branch officer Abul Khayer said that the exchange of fire took place around 3am on the Jessore-Jhenaidah Highway at Rahmatpur.
The dead appears to be around 30 years old and the police are yet to identify him.
According to Sub Inspector Khayer, a raid was conducted in the area on a tip-off about a robbery.
“The shootout erupted when the robbers opened fire. A bullet hit body was found after the robbers fled,” he said.
A pistol, a machete and a crosscut saw—used for felling trees—were recovered from the spot.
Three policemen were also injured in the 'shootout', who are being treated at the Jessore Sadr Hospital, added the police officer.