Dependence on Intermediaries in Agricultural Supply Chain in Bangladesh

Abstract

Despite the fact that the modern economy relies heavily on industrialization, Bangladesh's agricultural sector continues to be the country's primary source of revenue. Agriculture in Bangladesh has traditionally served as a driver of the country's sustained economic growth and development, and this trend will likely continue in the foreseeable future. However, the contribution of agriculture to the growth of non-agricultural sectors has maintained an increasing trend over time in Bangladesh, despite the large drop in the proportion of GDP attributable to agriculture over time. As a result, the agricultural sector continues to serve as an indispensable engine for the expansion of the country's economy. However, the process of agriculture's supply chain is notoriously difficult to understand. The connection between the consumer and the farmer is made by intermediaries. The accessibility of the market, the sort of product being sold, and other factors all have a role in determining the total number of intermediaries in the supply chain. Studies that were done in the past on the food supply chain in Bangladesh claim that there are a large number of intermediaries involved, and that these intermediaries skim off a significant amount of the price paid by customers as profit. Within the primary distribution channel, there are five different kinds of middlemen. Faria, Beparies, and Arathdar are the three primary mediators in this situation. Faria acted as a middleman for a number of small traders who operated their businesses inside three or four local markets. They were only responsible for a relatively little volume of product. Beparies are professional buyers who purchase agricultural goods from farmers or farias at the neighborhood market or in the community itself. Arathedar are agents who act between bepari and retailers and charge a fixed commission for the service of supplying storage space. They are considered to have a fixed establishment and serve as fixed commission agents. The agricultural supply chain in Bangladesh is significantly bolstered by the presence of these middlemen. The majority of Bangladesh's vegetable farmers do not have a formal education. They have a little understanding of how to offer their vegetable goods to the general public. Therefore, Faria, Beparies, and Arathdar are the means by which they market their product. At the intermediate level, the most significant aspects of marketing functions include transportation, storage, grading, financing, market intelligence, pricing, and other similar aspects are handled by the intermediaries.