Middlemen push green chilli prices up 116%, onion prices 87%: CPD
According to the survey, green chillies experienced the highest farm-to-retail price markup at 116%, followed by onions at 87%, pulses at 78%, and brinjals at 72%
The dominance of intermediaries in Bangladesh's supply chain is significantly inflating the prices of essential commodities, with green chilli prices rising by as much as 116% and onion prices by 87% between farm and retail levels, according to the Centre for Policy Dialogue (CPD).
The findings were presented on Thursday at a press conference held at the think tank's office in Dhaka, where CPD unveiled its latest report titled "State of the Bangladesh Economy in FY2025-26: Multidimensional Challenges During the Transition Period."
Presenting the report, CPD Executive Director Fahmida Khatun said Bangladesh's commodity markets continue to be characterised by a heavy reliance on urban wholesalers and intermediaries, creating market concentration and weakening competition across supply chains.
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The findings are based on CPD's 2025 market survey, which covered around 1,000 market participants, from farmers to retailers, across 10 major commodities, including rice, pulses, onions, potatoes, green chillies, brinjals, eggs, beef, fish and broiler chicken.
According to the survey, green chillies experienced the highest farm-to-retail price markup at 116%, followed by onions at 87%, pulses at 78%, and brinjals at 72%. CPD attributed these sharp increases largely to lengthy supply chains involving multiple layers of intermediaries between producers and consumers.
"The greater the number of intermediaries involved in the supply chain, the higher the final price paid by consumers," Fahmida said, adding that the structure allows certain market players to exert disproportionate influence over procurement and retail prices.
The report identifies urban aratdars (wholesalers or commission agents) as key actors in the marketing of onions, potatoes, vegetables, eggs and fish. Retailers depend heavily on these intermediaries for sourcing products, reducing their bargaining power and increasing market concentration.
CPD warned that such dependence creates structural vulnerabilities in the market and fuels inflation. Fahmida also noted that excessive market power in the hands of a few intermediaries reduces competitiveness and enables anti-competitive practices, allowing them to capture a disproportionate share of profits while contributing to inflationary pressures.
In contrast, products with relatively shorter distribution chains, such as eggs, broiler chicken, beef and fish, showed comparatively lower markups between producers and retailers. The report further highlighted a persistent upward trend in the prices of several essential commodities in recent years.
As of 14 May 2026, beef prices had reached Tk790 per kilogram, marking the steepest increase since 2019. Rui fish was selling at Tk365 per kilogram, while broiler chicken stood at Tk190 per kilogram.
Prices of Moshuri lentils nearly doubled during the period, rising from Tk63 per kilogram in 2019 to Tk118 per kilogram in May 2026. Rice prices, however, remained relatively stable, with medium-quality Pijam rice selling at around Tk60 per kilogram.
Eggs continued to be among the most affordable protein sources, retailing at Tk37 per four-piece unit.
To address these challenges, CPD called for stronger regulatory oversight to curb oligopolistic behaviour, improve transparency in commodity markets and strengthen direct linkages between producers and retailers.
The organisation argued that reducing the influence of unnecessary intermediaries could help lower consumer prices, improve farmers' returns and enhance overall market efficiency.
