Middlemen likely responsible for vegetable price hike: agriculture ministry

An extensive study into the skyrocketing price of vegetables in local markets by the Ministry of Agriculture has drawn particular scrutiny to the role of middlemen.

The study is being conducted by the agricultural ministry officials and the district administration, said Agriculture Secretary Md Sayedul Islam at a press briefing on Sunday.  "We'll be able to know the specific reasons for the price increase when the study is completed," he said.

The price of daily essentials has been on the rise due to the instability in global market. But agriculture authorities found no logic to the price increase of locally produced greens and vegetables.

In the primary phase of the study, the ministry identified a few factors pushing up the price, with middlemen being the most prominent one, the secretary said. 

"Vegetables that are sold at Tk 10 to 20 per kg at Palashbari in Gaibandha, are sold to people in Dhaka for Tk 60 to 70 per kg," he said.

Another factor was the untimely rain and Cyclone Jawad, which hit Bangladesh on Dec 5, and caused significant damage to crops.

The vegetable supply to the markets, however, was not affected due to the weather as the farmers had enough produce to cover for the shortfall. But their production cost increased, which could be another reason for the price hike, the agriculture secretary believes.

Currently, a single cabbage or cauliflower is priced between Tk 30 to 40. Although they are traditionally winter vegetables, their prices never dropped below Tk 20 during the winter months.

Radish, beans, bottle gourds, tomatoes and other seasonal vegetables have doubled in price since last year.

Though middlemen were identified as one cause for the vegetable price hike, Sayedul Islam could not give information on any initiative to curb their influence.

The Ministry of Agriculture has several organisations under its jurisdiction to maintain the production and supply of food grains and agricultural products, including the Department of Agricultural Extension, Bangladesh Agricultural Research Council and Department of Agricultural Marketing.

bdnews24.com asked why the government needed to do a separate study to identify the reason behind the vegetable price hike, when all of those organisations already exist?

In response, the secretary said that the ministry is working to limit the influence of middlemen and are trying to figure out the proper price of vegetables at every step of the supply line.

He said that other ministries are also working on the issue.

According to the FAO, Bangladesh is the third largest producer of vegetables in the world. China tops the ranking, followed by India. The agriculture sector accounts for 13.29 percent of the GDP of Bangladesh.

Currently, Bangladesh produces around 100 types of vegetables. 

Vegetable production in the country increased sevenfold over the past 12 years, according to ministry data.

In the 2020-21 fiscal year, Bangladesh cultivated 19.7 million tonnes of vegetables on 935,000 hectares of land. The production was 18.4 million tonnes in the fiscal year prior to that.