The decision of the government to build permanent markets at the upazilas is quite a pragmatic one, especially as a starter to address the poor marketing mechanism at the grassroots level. The Executive Committee of the National Economic Council (ECNEC) last week approved a project titled Rural Bazaars Infrastructure Development at a cost of Tk 17.30 billion in order to provide farmers with better market access and fair prices. Under the project, 520 three-storey rural bazaars would be built at the upazilas-- at least one in each upazila. To be completed by 2020, the project is the first of its kind aimed at facilitating market access of products produced locally, which observers believe should have multiplier effect on rural economy, if properly implemented.
There should not be questions about the objectives of the project. Beside providing the facility of market access and fair price, these marketplaces are very likely to stimulate both demand and supply in the respective locations-- depending on the strength of the products produced, primary or manufactured. Skirting around the middlemen is indeed a clear objective of the project that should inspire farmers as well as others engaged in small or medium-scale manufacturing. More often than not, farmers are forced in the present marketing system to sell their produce to middlemen at the farm level.
The bulk of agro commodities in the country are produced in the rural areas, and thus wholesale buyers who cater for the urban markets direct their efforts to penetrate the rural markets. There is a lot of competition in the urban markets, and thus they move to the rural ones to escape intense competition and generate profit from the untapped areas. In this situation, creating an environment for the producers to market their produce directly will empower them with the much needed bargaining power, now mostly missing. With the application of technology, farmers these days are better poised than before to produce quality products, and lots of diversified products are also available. No doubt, the marketplaces will help farmers gain from increased and quality production.
An efficient marketing system can provide better prices to producers and improve the availability of products in keeping with market demand. Implementing the project is thus more than just constructing the market centres as achieving its objectives will largely depend on how the mechanism is put in place. This among others includes adopting a neutral, apolitical approach to allocation of spaces to aspiring people willing to open outlets of their products. There are other issues too, which though not under the purview of the project, should be taken into account. These include availability of financing by banks and other financial institutions, improvement of communication to facilitate transportation of goods to the marketplaces and so on. Location of the marketplace is highly crucial too and will require thoughtful consideration well in advance.