Dhaka: The Bangladesh Bank (BB) survey has emphasized the need to address supply shortages to stabilize the prices of agricultural products. The central bank's study, titled 'Value Chain Efficiency of the Agricultural Products in Bangladesh,' was conducted by its Chief Economists Unit and Governor Office, examining five key items: paddy or rice, potato, onion, broiler chicken, and egg.
According to Bangladesh Sangbad Sangstha, the study reveals that while farmers earn significant profits, intermediaries and wholesalers gain smaller margins during the survey period for rice and paddy production. The supply chain dynamics show that rice millers play a crucial role in setting prices based on milling costs and market conditions. Supply shortages, especially during off-peak seasons, exacerbate price volatility, necessitating the implementation of a reliable and transparent price range and close monitoring of stocks.
Floods, pest attacks, and increased input costs, such as fertilizers and pesticides, further contribute to production challenges. The introduction of jute bags for transportation adds an environmental cost, while rice imports play a vital role in stabilizing prices during shortages. However, importers faced challenges due to insufficient foreign currency, stressing the need for timely policy adjustments.
In the potato supply chain, the study found that intermediaries set selling prices, sometimes exploiting cold storage gates during post-harvest periods. Unusual price surges, driven by supply-demand mismatches, highlight the importance of government monitoring and phased releases from cold storages to stabilize prices. Importing potatoes during off-peak periods can mitigate shortages without harming local farmers, with prospects of higher production anticipated due to expanded cultivation.
For onions, importing during supply scarcity can alleviate price pressures. September and October, being off-peak production months, require government intervention to adjust import duties, ensuring an abundant supply. Similarly, timely dissemination of price information can help actors in the value chain make informed decisions.
Egg production costs are heavily influenced by feed prices, prompting the study to recommend initiatives to lower feed costs. A stable foreign exchange market can assist in achieving cheaper poultry feed prices. The study also suggests allocating funds for feed mills and biogas plants to stabilize egg markets. Broiler producers face risks with lower profit margins, necessitating floor price schemes to ensure minimum profits. Government incentives for private feed and hatchery facilities, along with policy evaluations on import duties, could help reduce costs.