Wholesale vegetable market holds steady despite sharp surge in transport costs

Vegetable prices in Dhaka’s key wholesale markets have so far remained largely stable, even as transport costs have surged sharply following the latest fuel price hike.

According to wholesale traders in Old Dhaka’s Shyambazar market, while there is increasing uncertainty in the market due to the rapid increase in transport costs, prices of commodities have remained stable at source, resulting in a stable wholesale vegetable market.

However, the increasing pressure across the supply chain could soon cause higher retail prices, said the traders, transporters as well as apprehensive consumers. The ripple effects are already evident across various vegetable items, some traders say.

Tomato trader Mati Hawlader said wholesale prices could rise by Tk1 to Tk2 per kg. "Truck fares have surged dramatically – from around Tk28,000 to over Tk35,000 – putting additional pressure on us," he said.

Md Masum, a carrot trader, reported a Tk200 increase in expenses per maund, attributing it largely to the spike in transportation costs. “Vegetable prices fluctuate naturally, but such a sharp increase in fares from Tk17,000 to Tk25,000 in a day is unusual,” he said.

However, not all commodities follow the same pricing trend. The prices of pointed gourd actually declined – from Tk300 per 5 kg to Tk280 – despite a Tk10 increase in transport cost per crate, said Masum.

Similarly, bitter gourd and teasel gourd trader Md Saiful said that prices have dropped slightly, but transport costs have surged by around Tk100 per crate to bring the vegetables from Dinajpur to Dhaka.

Meanwhile, Mahmudul, a bottle gourd trader, said product prices remain steady, but transport costs have increased by Tk0.50 per piece to bring it from Naogaon.

Trader Masud brings pumpkin from Munshiganj. Wholesale prices were between Tk20 and Tk25 per kg. However, the cost of hiring trucks has risen significantly – from Tk5,000 to around Tk7,000.

Another trader, Md Ashraf, who sells onions and garlic after bringing them from Faridpur and Pabna, said that current prices remain unchanged due to existing stock. However, he warned that transport costs per sack – previously around Tk110 – are likely to rise by Tk15, which could soon impact market prices.

Abu Hanif, a wholesale guava trader, said that the cost of transporting a carton of the fruit from Jashore and Jhenaidah has jumped from Tk200 to Tk220.

While procurement prices remain unchanged, he warned that rising logistics expenses may eventually force traders to adjust prices in the coming days.

Watermelon trader Akhtar Hossain said that it costs roughly Tk50,000 to transport a truckload of watermelons from Khulna to Shyambazar. Despite the decrease in the market price of watermelons, transport costs have increased by Tk5,000 to Tk7,000 per truck.

Transport workers insist that the fare hikes are unavoidable in the current fuel crisis. Hakim, who transported taro from Jashore, said drivers themselves do not determine the rates. “Owners fix the fares, and with rising fuel prices, a 15% to 20% increase is inevitable,” he said.

Md Sajib, a transport worker operating from Shyambazar to Chandpur, said the rates have already increased by Tk2,000 and may jump to Tk14,000 from Tk12,000. “Fuel prices have surged. We have to raise fares to adjust the cost,” he said, stating that there is a direct link between fuel costs and freight charges.

Small truck driver Md Selim, who carried onions from Pabna, echoed the statement by Md Sajib and claimed that the fares have spiked by around Tk2,500 within just a day.

Nur Nabi, who brings okra from Pabna, said freight charges for larger trucks have risen by around Tk8,000.

Abdullah, a truck driver who transported watermelons from Khulna, said that the freight rate per truck is set to rise by at least Tk5,000 more, which was Tk50,000 previously.

Another driver, Md Selim, who carried onions from Pabna, said fares have spiked by Tk2,000 to Tk2,500 within just a day.