Bangladesh Rice Prices Nearly Double from Farm to Consumer Level

A study by the Centre for Policy Dialogue (CPD) found that the price of rice nearly doubles when it moves from farmers to consumers. At the farm level, per kilogram of Paijam rice sells for an average of Tk 30.65. However, after passing through traders, millers, and wholesalers, the same rice is sold at the retail level for Tk 59.69.

The study also examined other commodity price trends, finding steep markups between farm and retail levels. The price of lentils rises by 78 percent, onions by 87 percent, potatoes by 50 percent, green chillies by 116 percent, aubergines by 72 percent, eggs by 25 percent, beef by 13 percent, fish by 10 percent, and broiler chicken by 22 percent.

Food inflation is influenced by several supply-side factors, including market concentration, the role of warehouse owners, commission agents and intermediaries, supply disruptions caused by natural disasters and weather conditions, and weaknesses in storage and communication infrastructure. The CPD recommended cutting unnecessary supply chain layers, increasing market choices for farmers and retailers, and ensuring greater transparency in prices and market information.

Commerce Minister Khandakar Abdul Muktadir said that inflation is not declining in Bangladesh. He emphasized the need to reduce logistics costs, control production input costs, and increase agricultural productivity. MA Sattar Mandal questioned whether the CPD findings truly reflect reality, citing a lack of data from an entire year.