State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
2.2 Changes in Prices in the Supply Chain of
Imported Non-Rice Products: Importers,
Wholesalers and Retailers Levels
Changes in Prices of Non-Rice Food Products:
Imported commodities such as sugar, soybean, palm, lentils, and wheat have
experienced different levels of rise in prices at import, wholesale and retail
stages.
➤ A key point to note is that changes in international market price for
selected products do not necessarily influence the local market prices to
the same tune for all such imported products.
□ Market price along the local supply chain tends to be influenced by the role
played by the key agents including importers, wholesalers and retailers.
The nature of market-based performance can be examined by analyzing the
distribution of margin in the supply chain.
➤ The margins received by importers are considerably high compared to wholesalers
and retailers, which is usually not the case in a competitive market structure.
It appears that the importers have been taking advantage of their 'dominant
market player' role in the supply chain, thereby influencing the price and reaping
higher margin.
Consequently, importers' price does not necessarily correlate with the
international market price.
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
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