Rice prices nearly double by the time they reach consumers from farmers, highlighting inefficiencies in Bangladesh’s food supply chain, according to a study by the Centre for Policy Dialogue (CPD).
The study found that farmers sell Paijam rice at an average of Tk30.65 per kg, but the same rice reaches retail markets at Tk59.69 per kg after passing through traders, millers and wholesalers.
The findings were presented on Thursday at a dialogue on “Food Value Chain: Bangladesh’s Market System, Profits and Intermediaries” held at BRAC Centre Inn in the capital. The study was presented by CPD Senior Research Fellow Fakhruddin Al Kabir.
The research also showed substantial price increases for other essential commodities between farm and retail levels. Prices rise by 116% for green chilli, 87% for onion, 78% for lentils, 72% for eggplant and 50% for potatoes.
For animal protein, retail prices increase by 25% for eggs, 22% for broiler chicken, 13% for beef and 10% for fish compared with farm-level prices, the study said.
Speaking as chief guest, Commerce Minister Khandaker Abdul Muktadir said Bangladesh continues to struggle with persistently high inflation despite many countries seeing inflation ease after the COVID-19 pandemic.
He said inflation has remained around 9% to 9.5% for an extended period, attributing it largely to high logistics costs.
“Globally, logistics costs are typically around 10% of GDP, but in Bangladesh they account for about 16%,” he said.
The minister said reducing logistics costs and lowering import expenses are essential for bringing inflation under control. He also stressed the need to identify cost increases at every stage of the supply chain, from production to retail.
Referring to potato cultivation, Muktadir said Bangladesh has produced more than 10 million tonnes of potatoes annually for the past two years, yet farmers still fail to receive returns that match their production costs.
“If farmers are not getting fair prices, we need to examine what is happening across the marketing chain,” he said, adding that efforts are under way to identify hidden and unaccounted costs that inflate consumer prices.