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Problems and Prospects of Wholesale Marketing of Fresh Produce in Bangladesh Selected Case Studies

MD. RUHUL AMIN
Director General (on LPR), Food Planning and Monitoring Unit (FPMU), Ministry of Food and Disaster Management, Government of the People’s Republic of Bangladesh and served the Government in the area of policy research and analysis since 1980.

MD. RUHUL AMIN TALUKDER
Research Director (in-charge) (Food Security, Consumption and Nutrition Analysis), Food Planning and Monitoring Unit (FPMU), Ministry of Food and Disaster Management, Government of the People’s Republic of Bangladesh.

Abstract/ Executive Summary:

The paper identifies the problems relating to trade, marketing margins, and maintenance of quality and safety standards in fresh agriculture produce in wholesale urban markets. It also examines the prospects of wholesale markets in performing the economic function of buying, selling and value-addition. Four wholesale markets for the supply of vegetables, fruits and fish were surveyed. The study confirms that the supply of produce from the northwest Bangladesh to Dhaka usually involves middle men between producers and final consumers and entails three successive stages of delivery from farm to local primary market, from primary market to urban whole sale market, and from wholesale market to the retail market. Alongside, an organized retailing sector (supermarkets) is emerging that is gaining popularity among the rich and upper-middle income consumers in Dhaka and other big cities. Inadequacies in handling, transportation and storage facilities for fresh produce are noted to be the prime cause of quantity loss and degradation of quality resulting in poor shelf life. Significant informal transactions influence the prices across the market chain. Collaborative efforts and arrangements among government, private sector, traders and NGOs need strengthened in order to put in place a wholesale marketing system of fresh produce along with strategic policy implementation for improving the marketing environment across the food chain.

Keywords: Wholesale market, Marketing environment, Interventions, Infrastructure management

Location: Different local markets of Dhaka city

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Evaluation

Objectives:

This paper is an attempt to identify the constraints of urban wholesale markets of fresh produce, especially for bulk trading of vegetables, fruits and fishes, in urban areas. It also analyzes the prospects of wholesale markets by evaluating perceptions of major stakeholders-traders, retailers and key informants. In the next sections, efforts are made to elaborate the objectives and methodologies, followed by results and discussion on the findings with regard to problems and prospects of wholesale marketing, and provide some strategic recommendations.

Methodology:

This paper focuses on the wholesale markets for agriculture fresh produce in urban areas in terms of identifying their problems relating to infrastructure (for handling and transportation, storage and packaging), trade, marketing margins and maintenance of quality and safety standards. It also examines the prospects of wholesale markets in performing the economic function of buying, selling and value-addition. The three agricultural commodities considered are vegetables, fruits and fishes. Case studies were conducted in four wholesale market places. The locations were Kawranbazar, approximately 5 kilometers from the city, which is the receiving point of fresh vegetables, fruits and fishes from the districts by road, Swarighat (for fish) and its adjacent Shambazar (for vegetables) and Badamtali ghat (for fruits), where products are received from the southern and riverine districts by water transport. Analysis was carried out using primary and secondary data. The primary data collection was carried out using a set of pretested questionnaires for the wholesalers. Thirty wholesale traders (aaratders, who owns shops/warehouses) were interviewed. Of these, 9 were fish wholesalers (4 from Kawran bazaar and 5 from Swarighat), 10 were wholesalers of fruits4, and 11 were wholesalers of vegetables5, all randomly chosen from the traders in the market. The questionnaire included information on household and socio-economic condition, trade and establishments, facilities available in the shops/markets, personal hygiene, institutional hygiene and sanitation, prevailing problems, risks and their probable solutions, awareness about laws and regulations, involvement in associations/groups, potential barriers and prospects of wholesale trade, etc. In addition, eight Focus Group Discussions (FGDs) with retailers were organized6. Discussions were also held with 16 Key Informants7 who were associated with monitoring, research and management and governance of market infrastructure for ensuring safety and quality of food stuffs. These discussions helped to fill information gaps and validate opinions obtained from the traders8. A desk review was also conducted to gather information on agriculture and food policies of the country and findings of available studies about market structure and marketing margins across the chain for agriculture produce.

Source of Information: Bangladesh Journal of Political Economy Vol. 26, No. 2, December 2010, pp. 193-214

Article Link (Online Journal):

Funding Source:

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Achievement/Findings:

The wholesale markets provide most small farmers with effective and profitable outlets. They are important for maintaining a sustained flow of fresh produce to the retail markets, thus offering benefits to the low income consumers as well. While the private sector will continue to take the lead in developing high-value agriculture and related agro-business, the role of government remains essential in fostering an enabling business environment for market-led growth through stable and undistorted economic incentives and in providing critical public goods and services where private sector is less interested in. Closer collaboration between the public sector, nongovernmental organizations, and the private sector would be extremely beneficial in addressing the combinations of opportunities, risks, and challenges embedded in the wholesale marketing environment in Bangladesh.

Knowledge Management: Journal