BUFT Journal of Business and Economics

Spatial Price Differences of Vegetables: The Role of Middlemen in Bangladesh

Department of International Business, University of Dhaka
Email: mouri.ib@du.ac.bd; belayetdhaka50@gmail.com

Abstract

Purpose: Bangladesh is basically an agricultural country because of suitable water, soil and weather. Agriculture plays a significant role in our economy for employment, value addition and food safety. Thus, the aim of the study is to explore the influence of middlemen for spatial price differences of vegetables in Bangladesh. Methodology: The study is descriptive in nature where both primary and secondary information has been collected to perform the survey. Dhaka, Comilla and Chittagong; these three areas have been used for conducting survey. Findings: The study has found that the price fluctuates significantly from one place to another as middlemen have involvement in the distribution process of vegetables. Moreover, they have more negotiation power when the distance is huge between the growers and customers. This lengthy process is depriving the consumers to get the fresh vegetables within reasonable price. Practical Implications: This study would be useful for the authority to judge the situation. The concerned specialists might take necessary steps to help our customers getting fresh vegetables within reasonable price. Originality: The study has provided a deep insight on how distance increases the price of vegetables by comparing two areas: Dhaka and Chittagong. Also, the study has attempted to specify the volume of profits made by the middlemen in each stage of supply chain process. Limitations: The paper collected information from the middlemen involved in delivering vegetables from Comilla to Dhaka and Chittagong. Moreover, it investigated the condition of few vegetables. Including more areas and vegetables might be helpful to get accurate result.