Fuel oil shortage, lower production trigger vegetable price increase

Vegetables have become more expensive, because of the shortage of fuel triggered by war between US and Iran. The production of vegetables also fell predictably at the end of the winter season. 

The cost of transporting vegetables by truck from Bogura to Dhaka has risen 30 to 40 per cent in the past two months. The US-Iran war has disrupted fuel supply around the world.

Meanwhile, the prices of vegetables have increased up to 60 per cent in the vegetable trading hub of the north, Mohasthan in Shibganj, Bogura. While farmers are getting better farm prices for their produce, consumers in the urban areas now have to pay much higher prices, as transportation cost has increased, and supply has fallen.

The enhanced prices of vegetables such as okra, bitter gourd, radish, aubergine and long bean were between Tk 25 and Tk 40 per kilogram at the Bogura wholesale market on 24 April. The following week, the prices of these vegetables in Dhaka’s kitchen markets were recorded in the range of Tk 60 to Tk 100 per kg.

“We see lower supply of vegetables at this trading hub in recent times. The farmers understand the price situation and they raised the prices of their produce, doubling it in some cases. Also, the increased transport cost has been added to the vegetable price,” Harun-or-Rashid (38), an arotdar (wholesale dealer) at Mohasthan, told this author. He admitted that prices of vegetables at the consumers’ level have become too high.

In Shibganj where more than 80 per cent farmers are engaged in vegetable farming, Mainul Ahsan (50) of Mohasthan said he cultivated vegetables on five bighas of land in 3 to 5 cycles round the year. “The cost of vegetable farming has increased significantly with rise in input price plus labour wage. We struggled to run tractors due to diesel crisis recently. Production also decreased this season but we got good prices for our produce,” he observed.

A farmer of Sudhampur, Shibganj, Shahjahan Ali (55) sold a late variety of radish at Tk 1,200 per maund (40 kg) compared to Tk 500 per maund last year. “We make profit when we suffer loss of production. But we fail to recover costs when there is bumper crop like when the high production of potato caused the price to fall in the previous season,” he added. Another farmer of Sarkarpara, Gorh Mohasthan, Azizul Haque (44) pointed out that in spite of production loss due to bad weather this year, he managed to make profit, thanks to the increase in the prices of his produce.

However, Shah Jamal (36), a farmer of Manikdipa, Shahjahanpur, has a different opinion. He said that many Bogura farmers suffered because of the oil crisis and power outages, but could not benefit from the price increase of vegetables, because of the higher transport costs.

Wholesale trader at Mohasthan Taherul Islam (46) explained that usually there is less supply in between winter and summer, but this year production loss and energy crisis aggravated the situation. “We have to purchase vegetables here at much higher prices now, and pay for example, Tk 10,000 higher than the normal fare, renting a truck at Tk 25,000 to transport vegetables to Noakhali,” he said.

The manager of a wholesale centre in Noy Mile area, Mashiur Rahman said they are transporting almost half the volume of vegetables they transported two months ago. “We have to count Tk 5 to Tk 20 additional cost for each kg of vegetable depending on the item. The additional  cost of transportation leads to price increase in Dhaka and other cities and towns,” he added.