Perceived barriers and the price inflating effects of informal payments in fresh food retailing in urban Bangladesh

Le résumé fourni par la source

Abstract Insufficient fruit and vegetable consumption in Bangladesh, currently 25% below the WHO-recommended level remains a major public health concern. One overlooked factor contributing to high consumer prices and limited access is the presence of informal payments within urban fresh food supply chains. This study investigates the extent, nature, and economic implications of informal payments among fruit and vegetable retailers in Bangladesh’s urban markets. A mixed-method approach was employed, combining face-to-face surveys with retailers in two purposively selected areas, Dhaka City Corporation and Manikganj district and in-depth interviews with key supply chain stakeholders. Findings reveal that 36% of retailers reported making informal payments, with a markedly higher incidence in Dhaka (42%) than Manikganj (2%). Mobile (64%) and street vendors (44%) were disproportionately affected, while wet market retailers experienced fewer cases (14%). On average, informal payments amounted to BDT 2720 (US$ 26.93) per month, equivalent to 9.6% of monthly profit—rising to 10.97% among street vendors and 7.09% among wet market sellers. Thematic analysis of qualitative data highlighted how such payments constrain business profitability, discourage formalization, and act as an indirect tax on consumers, thereby inflating food prices and reducing affordability. The study concludes that addressing informal payments is critical to improving supply chain efficiency and food accessibility. Policy interventions should prioritize the formalization and integration of informal retailers, alongside targeted investments in transport logistics, cold storage, marketing infrastructure, and financial inclusion through government support or public–private partnerships.

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