September , 2007
 

| Cover Story |
IIt is they from whom consumers buy their daily necessities direct; it is they who buy their selling items from the heated end of the supply chain. They are retailers-grocers or sellers in the kitchen market-remaining witness to consumers' resentment over the exorbitant price of the goods they sell.

To know more about them and how they view the present commodity price, ET reporters Chy. Asaduzzaman and Kazi Rokon Uddin visited some local markets and in the process interviewed a couple of wholesale businessmen and storage-facilitators as well.

Uttara Market
Md. Asgor Ali (vegetable retailer)


In my family, I've two little sons, 3 and 4 years old respectively, my wife and my mother. My wife also works; she works as housemaid in several houses everyday.

I hardly make Taka 200 as profit from selling Tk.4000-5000's worth of potatoes daily. Almost all of what my wife and I earn is spent on maintaining my family. It is like eating from hand to mouth.

I have been doing this business for about fifteen years. I do not see any further prospects in this business, but this is the only business I think I am good at. Over the years I have been able to increase my investment but still sometimes I have to borrow money from the people I know well.

In my opinion, one of the main reasons for the high price of essential goods is the increase in the transportation cost. There are other reasons. What we sell is all raw and can get rotten easily if it stays in the market for a long time. If more goods are rotten then there are fewer fresh items in the market and the price of the goods increases, as we need to charge high price to cover the loss.

We have to purchase products from the wholesale market without having the right to inspect the goods we are buying -we have to buy sealed cartons/ boxes of goods. If by any chance some products in these boxes are rotten or damaged we cannot return them to the sellers. Often I have to throw away goods just like what I did the day before yesterday. To make up for the loss I had to raise the price of fresh goods.

Personally I think with the increase in the population consumers' demand has increased at each level. So prices are increasing automatically.

Gulshan Market
Shirajul Islam (fish retailer)


Actually fishes are carried from Khulna to Sadarghat to Karwan bazaar. At present the price of Hilsha fish is a little lower but that of other kinds is much higher than the previous week. This has happened because of the unusual flood washing away fishes.

I have two sons and a daughter; two of them are studying in class 3. My daily sales range from Tk7000 to Tk8000. I have a helper; I just provide him with pocket money daily; he stays at my home. I've to pay Tk3000 for home rent and Tk2000 for this shop. At the end of the day after fulfilling all the demands I am left with no money.

Our problem is that every customer wants to buy fresh fish; we have to throw away rotten fishes. Sometimes I purchase fish from Mirpur Beri Badh in the afternoon for some loyal customers who purchase fish in the evening. But because of the supermarkets we are losing some of our customers.

Motijheel Market
Roisuddin (vegetable retailer)

I am 56 and have been in this business for 20 years. At first I used to sell vegetables from door to door. Then ten years back I started my business at Palashi bazaar. I shifted to Motijheel bazaar 3 years ago.

I buy vegetables from Kawranbazar early in the morning and sell them at Motijheel bazaar until 10 pm. Sales range from Tk5000 to Tk8000, out of which I make Tk500 to 800.

Sales have gone down; super shops have taken our business away. Nowadays, many of our regular customers don't come to us anymore; super shops have made them conscious of their status.

Everybody thinks that we make huge profit but actually we do not; everyday we have to throw away some vegetables because of damage, but we paid for those vegetables. We have to bear the carrying cost, labour cost, rent and so on so the difference between buying and selling does not add much to our profit.

I have 3 children; two of them go to school. I'm living at Jhilpar.

Mohammadpur Bazaar
Shamim Ahmed (retailer at a department store)


My father started retailing business after the Liberation war. Me and my elder brother Abdur Rahim set up a small departmental store at Mohammadpur Town Hall market in 1995. I expanded this store a bit last year.

Five years ago, our daily sales ranged from Tk20,000 to Tk25,000 and profit ranged from Tk800-900 approximately. But now sales have been reduced to Tk8000 and profit has gone down to Tk400 approximately, because of the increasing number of stores.

Our investment has increased relative to sales. Say for example when I bought Ata (flour) for Tk50, I sold it for Tk52; now it is Tk60 and I have to sell it for Tk62. Look that I've to invest more money than before but my profit remains the same-that is Tk2. So my question is: who is liable for raising the price of Ata from Tk50 to Tk60? Why blame us! We are not liable at all for the price hike.

In this market I've never seen any Chandabaji (extortion).

New Market
Nazrul Islam (retailer in essential commodities)

I was in Saudi Arabia for a long time but on account of my sudden illness I came back to Bangladesh and started to look after my brother's business. I've two sons studying at Barishal Cadet College.

At present, the profit I earn daily ranges from Tk300 to Tk350. Three years back the range was a little bit higher. Now many shopping malls exist in very popular places. Some of our loyal customers are choosing those hi-fi shops to enhance their status. So we are losing our customers.

The purchasing power of consumers has decreased. The picture is, for example, the consumer who needed to take a glass of milk before is consuming 1 cup of milk now.

Actually we have no control over price. We don't want to lose our customers. Because we are in a competitive market, if one seller sells at a lower price no matter how loyal your customer is will switch to that seller. So we try to keep up with the current rate.

About 5-6 years back, there was chandabaji (extortion) in this market. I purchase most of items from the wholesale markets of Chak bazaar and Moulovi bazaar. For onion I go to Kawran bazaar. I make monthly profit of app. Tk5000.

Abu Sayeed (vegetable retailer)


Generally I purchase vegetables from the Karwan Bazaar wholesale market. My daily sales range from Tk5000 to Tk6000. The profit margin is very thin and whatever I earn is spent on buying the daily necessities for my family.

We cannot check goods we buy from the wholesale market so if any item or a portion of any item is rotten or damaged we have to compensate for it for our survival by selling the remaining item or items at a higher price.

Actually I think shortage of supply and the changing weather are the major causes of the increase in the price of vegetables. Personally I don't like this business now; the reason is within the 30 years of my business life my living standard has not improved. You must understand I am a consumer myself; because essential commodities are abnormally expensive I find it difficult to survive remaining in my present business. I am looking for an opportunity to switch over to some other business that can give me more money.

Vashantek Bazaar
Babu (vegetable retailer)


I include the entire price; transport, employer etc. so I need to charge price as per my expenses. Like this micro van will charge Tk.500 this Karwan bazaar to Vasantak and labour will take to download per sacks Tk.10. I don't want to make much profit just want to get back returned investment and make little bit profit.

Md. Almgir (potato and onion wholesaler at Krishi Market)

Actually we, the wholesalers, sell products on a 10% commission basis. I have been in this business for 3 years. The commission rate has not changed so we have no influence on the increase in the prices of commodities. I believe if importers want they can reduce the price level; the only thing needed is self-purification.

Babul (onion wholesaler)

I buy onion from various places like Kushtia, Rajbari, Pabna, Langlbad and Magura. At first I need to store the goods in the storage room in each district and then take them to Karwan bazaar, so in every stage I need some extra cost is incurred. Finally I fix the price in keeping with the market trend. For example, today 1 kg of onion sells for Tk.17.50; previously it was Tk.19. The price is lower because supply has increased.

At the district level I've to pay Tk.8 per sack for labour and for storing Tk.12 per sack. Then I need to pay Tk.7000 for transportation. Then again when I reach here for downloading every sack I count Tk.10 and for storing Tk.25 per sack.

The profit I earn monthly is about Tk4000-5000. I have two sons; one works here in this market and the other is going abroad within 5-6days. I have one girl; she is studying in class four.

I have been doing this business for about 32 years.

Md. Haji Mostofa (arothdar or storage-facilitator)

I have been in this business for 22 years. The Bepary or wholesaler keeps their goods in my room; I just take Tk2 per scale (5 kg.) and Tk15 per mon (40 kg). Potatoes and onion are kept in my store. In front of my store I give facility to vegetable wholesalers for keeping their vegetables and I charge Tk2 per scale.

Omor Faruk (Arothdar or storage- facilitator)

I have been in this business for about ten years. I take 5% commission on the total amount of storage. If wholesalers want they can pay in advance or they can pay me after the sale. For potol and vendi we charge Tk2 per scale. For jali, mishti kumra, green banana and cornflower we charge 10% and for potato per sack we take Tk.40.

We have no influence on the price increase; we just provide the facility for storing the goods of wholesalers so that retailers can purchase them from here easily and most importantly the goods remain safe from any unlikable accidents like rain, fire, robbery etc. this Aroth is registered by city corporation. My monthly profit is about Tk.5000-10,000.

During Ramadan price will decrease, I believe, because import will increase and there will be no shortage of necessary vegetables.

Md. Kobir (potato arothdar or storage-facilitator)

I have been in this business for 17 years; I earn Tk.5000 to 10000 as net profit from the monthly gross income of Tk.50, 000-60,000. I have to count Tk.30,000 for the rent of this room and there are other costs, too.

Potatoes are collected from Munshigonj. I charge Tk30-40 per sack, depending on the amount stored.

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