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Flood-induced supply crunch pushes up vegetable prices

FE Report | Sunday, 24 August 2014



Prices of most consumed vegetables rose on Saturday, putting exorbitant pressure on fixed income groups.
Traders attributed the hike to the supply shortage caused by the recent flood and heavy rainfall in the growing hubs of the country.
Most of the vegetable prices increased by 10-20 per cent just in a day on Saturday compared to those of Friday, according to the key kitchen markets in the city.
Summer vegetables like ridge gourd, sponge gourd, snake gourd, teasle gourd, and common vegetables like pointed gourd, okra, bitter gourd (ustha), bitter gourd (karola), early winter varieties like radish, cauliflower, local bean, tomato prices increased by Tk10-20 per kg in the last 24 hours.
Papaya, potato, eddo (kachu-mukhi) prices were static.
Sponge gourd sold at Tk50-55 on Saturday morning which was Tk40-45 a day back and Tk30-35 per kg seven days back.
Pointed gourd sold at Tk 50, okra at Tk60, ridge gourd at Tk50-55, local bean at Tk110-120, tomato at Tk100-120 pr kg---Tk10-20 increase at per kg.
Altab Ali, a retailer at Nowabganjbazar in the city, said prices have been increasing gradually for last ten days at wholesale.
"I've bought tomato at Tk500 per palla (5 kg) at Rayer Bazar today (Saturday) which was Tk400-420 per palla on Thursday," he said.
He said that supply was also low at the wholesale level.
"Only three traders sold tomato on Saturday and the produces came to an end in the early morning," he said.
Samiron Kumar Sarker, a trader at Rayer Bazar in the city, said that supply of a few vegetables reduced and its prices also increased in the village level.
"Cost for per truck (nearly 14 tonne) ustha was Tk0.77-Tk0.78 million seven days back, which has been now Tk0.84-Tk868 million," he said.
"Flood and heavy rain in Rangpur, Kurigram, Nilphamari, Gaibandha, Bogra, Sirajganj, Rajshahi, Rajbari, Manikganj, Narshindi districts have taken a heavy toll on vegetable fields," Md Abdul Latif, president of Karwan Bazar Kanchamal Aratdar Baboshayee Samity, an association of vegetable wholesalers in the capital, said.
He said prices of chilli increased significantly due to the rain.
He said the farmers will go for winter crops in a few days but if flood situation deteriorates further, it could destroy existing vegetable fields and could hit vegetable production.
Agriculture expert Dr M A Sobhan told the FE that if the flood water doesn't recede in the next few days, it could spell disaster for crop fields both of rice and vegetables.
"Prolonging of flood can also affect winter crop farming as it could force farmers for late cultivation which causes lower production," he said.  
According to experts at Bangladesh Agricultural Research Institute (BARI), Rangpur, Rajshahi, Bogra, Jessore, Manikganj, Narsingdi, Comilla are the key suppliers of vegetable in the country.
Nearly 25 per cent of the total vegetables produced by the farmers of these areas are sent to Dhaka and Chittagong.
The country produces 12.1 million tonnes of vegetable annually.