Middlemen drive green chilli prices up 116% from farm to consumer: CPD

The price of green chillies increases by as much as 116 per cent between the farm gate and the retail market due to the role of multiple intermediaries in the supply chain, according to a new study by the Centre for Policy Dialogue (CPD).

The findings were presented at a briefing titled “Multidimensional Challenges in Bangladesh’s Economic Transition” held at the think tank’s office in Dhaka’s Dhanmondi area on Thursday (June 4).

Speaking at the event, CPD Executive Director Dr. Fahmida Khatun said inefficiencies and the growing influence of middlemen at different stages of the supply chain are significantly inflating the prices of essential commodities before they reach consumers.

The study examined price movements of 10 key products, including rice, lentils, onions, potatoes, green chillies, eggs, broiler chicken, brinjal, beef and rohu fish. It found that the prices of all surveyed items rose considerably between the producer and consumer levels.

According to CPD data, green chillies recorded the highest price increase at 116 per cent, followed by onions at 87 per cent, red lentils at 78 per cent and brinjal at 72 per cent.

“The greater the number of intermediaries involved, the higher the price burden on consumers,” Dr. Fahmida said, noting that each layer of the supply chain adds costs that are ultimately passed on to buyers.

She also pointed out that prices of essential commodities have remained volatile since 2019, with rice and several other food items witnessing notable increases over the period.

The CPD study identified the dominance of middlemen and weak oversight of supply chains as key factors behind persistent price hikes in the country’s commodity markets, calling for more effective market management and reforms to improve transparency and efficiency in the distribution system.