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July 2015
RAPID MARKET ASSESSMENT IN FLOOD AFFECTED AREAS OF
COX’S BAZAR DISTRICT
1
Acknowledgements
Thanks are due to Jessica Staskiewicz, Jade Cooper, Nandini Sabrina and Nusrat Jahir from the
WFP Cox’s Bazar Sub-Office for their support and cooperation in the whole process.
Special thanks to the Upazila Chairmen, Upazila members, Union Parishad Chairmen, market
management committee members, local elites and, above all, the community people for their
support in the data collection through Focus Group Discussions (FGDs).
2
Contents
1. Overview ............................................................................................................................................... 3
2. Rationale ............................................................................................................................................... 3
3. Objectives ............................................................................................................................................. 3
4. Methodology ........................................................................................................................................ 4
4.1 Assessment Tools ................................................................................................................................ 4
4.2 Market Selection ................................................................................................................................. 4
5. Market Structure ...................................................................................................................................... 7
6. Variation in Price Before, During and After the Flood ............................................................................ 8
7. Accessibility .............................................................................................................................................. 9
8. Supply and Restocking ........................................................................................................................... 10
9. Consumer Behaviour During and After the Flood ................................................................................. 10
10. Conclusion and Recommendation for Unconditional Transfer Modality .......................................... 11
3
1. Overview
As a result of heavy rainfall, flooding and subsequent landslide had been reported in the south
eastern part of Bangladesh from around the 23rd June. Three districts, Cox Bazar, Bandarban and
Chittagong were reported to be the worst affected. The Government identified 29 upazilas as
affected. Due to unavailability of loss and damage data and on-ground information on affected
population, the decision making on the response plan became difficult. Against this backdrop, on
the 29th June the Humanitarian Coordination Task Team (HCTT), co-led by the Government,
triggered a Joint Needs Assessment (JNA) for upazilas in southeast Bangladesh using the Phase 2
approach. The JNA reported 1.8 million people affected by the flood and provided a set of
recommendations for priority interventions in key sectors.
2. Rationale
Among the three highest priority needs identified by the JNA ‘food’ tops the list. Hence the JNA
eventually recommended for ‘food assistance’ – either in kind or cash – as short term response.
According to the Food Security Cluster (FSC) Contingency Plan for Flood, an unconditional
transfer is a part of the initial response phase with the pre-condition that markets are fully
functioning. The information gathered from the JNA in all three districts suggests that the
majority of people surveyed are not able to access essential food items such as rice, potatoes,
red lentils and soybean oil. Although none of the community groups reported ‘markets not
functioning’, they identified restricted or no physical access (poor, flooded, or destroyed road
conditions) to markets, unavailability of food commodities (in some of the markets) and increase
in price as main reasons behind having problems in accessing food items.
Nonetheless, this information did not give a sufficiently clear picture of the market situation for
a decision on the response plan. Therefore, an in-depth analysis of the situation was deemed
necessary. A quick glance at the JNA dataset suggested that in Bandarban and Chittagong Districts
the markets were functioning, and a cash transfer would be appropriate for reaching the market
and affording food and commodity prices, whereas in Cox’s Bazar there remained issues of
accessibility and food availability at the markets. Taking these issues into account, the JNA
recommended a Rapid Market Assessment (RMA) in Cox’s Bazar district only. In the HCTT
meeting on 20 July it was decided to conduct a RMA to be led by the FSC.
3. Objectives
The overall objective of the RMA was to assess the functionality of the affected markets in Cox’s
Bazar in order to define the appropriate immediate response modality. The specific objectives
were:
To assess the accessibility to markets
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To examine the availability of basic food commodities in markets
To examine the supply chain and restocking frequency
To analyze the variation in price of basic food commodities before, during and after
the flood
4. Methodology
4.1 Assessment Tools
Considering the scope of work and time constraint, the RMA covered a small range of market
functionality indicators. The tools used include
Reconnaissance of selected markets
FGDs with Market Management Committees (MMCs)
FGDs with flood affected community people
Key features of the assessment involved field teams compiling information into one consolidated
template (Data Entry Sheet) for all selected markets. The draft FGD checklists were discussed
with the WFP Cox’s Bazar Sub-Office staff who were engaged in the JNA, and finalized with their
inputs. From 22 to 23 July the RMA team - divided into two groups composed of two people each
- visited all selected markets and nearby communities in the targeted unions. The completed
checklists were entered into the data entry sheet by the groups in the field and sent to the FSC
Needs Assessment Officer for data processing and analysis. All human resources and logistics
including vehicles were arranged and provided by the WFP Cox’s Bazar Sub-Office.
4.2 Market Selection
The JNA report was the main guiding document for selecting the markets. The RMA team agreed
to include the markets from JNA sites i.e. Cox’s Bazar (CXB) Sadar, Chakaria, Ramu and Pekua
upazila. The team selected three markets from each upazila; and the selection criteria included:
markets in the unions visited during the JNA where community members reported having
accessibility problems, unavailability of food items and high price, as well as markets identified
through conversations with representatives of local NGOs and local government which are
servicing the most affected populations. The list of the selected markets is below:
Sl Upazila Union/s Name of Selected Market
1 Ramu Kawarkup Kawarkup Bazar
2 Between Gorjonia and
Kachhapia (JNA site)
Gorjonia Bazar
3 Gorjonia Beltoli Hat
4 Pekua Baro Bakia Sawdagar Hat
5
5 Pekua Sadar (JNA site) Pekua Bazar
6 Between Ujantia and
Mognama (JNA site)
Sonalia Bazar
7 CXB Sadar Piemkhali Piemkhali Bazar
8 Chowfaldandi (JNA site) Chowfaldandi Bazar
9 Between Pokkhali and
Gumatoli
Pokkhali Bazar
10 Chakaria Khutakhali (JNA site) Khutakhali Bazar
11 Makinpur (JNA site) Manikpur Bazar
12 Badarkhali Badarkhali Bazar
Map-1 shows the location of
the selected markets during
the JNA period. The RMA team
visited all selected markets
except Beltoli Hat in Ramu
Upazila. This market was
inaccessible due to a bridge
collapse amid the onslaught of
water. Community people and
street hawkers nearby
informed that it is a very small
and newly established market
with only 7 or 8 shops.
Therefore, the assessment
team decided to exclude
Beltoli Hat from the detailed
assessment and analysis.
A bridge in Gorjonia union of Ramu Upazila collapsed due to flash
floods.
Photo credit: WFP/Kamrul Mithon
6
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5. Market Structure
All sampled markets are well connected to the major supply nodes both at local and regional
level and half of those are long established (more than 50 years) as well. From a structure point
of view, all markets have a large number of retail shops and a very small number of wholesale
shops. Only Badarkhali Bazar under Chakaria has a large number of wholesale shops which
equally run wholesale and retail business. Table 01 below shows the structure of the selected
markets during the RMA:
Table 01: Structure of selected markets
Upazila Union Name of the
market
No. of years
market exists
No. of
wholesale
shops
No. of
retail shops
Ramu Kawarkup Kawarkup Bazar 24 5 15
Ramu Between
Gorjonia and
Kachhapia
Gorzonia Bazar 70 5 55
Pekua Pekua Pekua Bazar 35 10 100
Pekua Between
Ujantia and
Mognama
Sonalia Bazar 15 2 5
Pekua Baro Bakia Saudagor Hat 10 2 6
CXB Sadar Chowfaldani Chowfaldani
Bazar
70 15 110
CXB Sadar Between
Pokkhali and
Gumatoli
Pokkhali Bazar 50 0 100
CXB Sadar Piemkhali Piemkhali Bazar 55 0 30
Chakaria Khutakhali Khutakhali Bazar 65 3 100
Chakaria Manikpur Manikpur Bazar 30 3 12
Chakaria Badarkhali Badarkhali Bazar 100 70 200
Source: Field Survey, 22-23 July 2015
The MMCs reported that all markets have a catchment area of 3-4 km radius. Most people access
the market by foot. Only Badarkhali Bazar has a larger catchment area. Small/retail shopkeepers
and buyers from around Chakaria upazila - who need to purchase bulk amounts of commodities
for their shops and special purposes, i.e. marriage ceremony or other social and religious event
– come to this market. In most of the households the men usually go to the markets though all
sampled markets were reported safe for women.
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6. Variation in Price Before, During and After the Flood
FGDs with MMCs and community people indicate a price hike of basic food items during the
flood. The reasons reported are the combined effects of supply chain disruption, delay in re-
stocking due to standing water in markets which was slow to recede and the Holy Month of
Ramadan when the demands of some specific food items like red lentils, soybean oil, potatoes,
meat and vegetables (especially eggplants) increases.
Figure 01: Variation in price
The price of coarse rice, potatoes (local), red lentils and soybean oil (loose) increased by 8%, 29%,
10% and 2.5% respectively during the flood. As soon as the flood waters receded, the price of
coarse rice and soybean oil became stable whereas the price of red lentils and local potatoes
further increased by 14% and 17% respectively after the flood. The MMC members reported high
price at source (for red lentils) and damage to stock and local production (for local potatoes) as
reasons for the sharp price increase.
Both the MMC members and community people reported the worst case scenario with
vegetables. The flash flood caused widespread damage to the production and stocks of seasonal
vegetables1. The unit prices of ladies fingers, eggplants, arum almost doubled during flood and,
still remain very high compared to normal periods.
The price of local varieties of small fishes decreased during flood as a result of abundance of small
fish in flood water due to the overspill of rivers and damage to fishing ponds/enclosure (Locally
known as ghers).
1 Seasonal vegetable includes ladies fingers, eggplants, arum
0
20
40
60
80
100
120
140
Coarse rice Potatoes Red Lentils Soybean oil Small fish Seasonal Veg.
Before ( 22 June and before) During (23 Jun-04 Jul) After (07 Jul)
Un
it p
rice
: Tak
a/K
g o
r Ta
ka/L
iter
9
7. Accessibility
The RMA team conducted 11 FGDs with MMC members and 4 FGDs with community people (1
FGD/Upazila) living in the villages within 3-4 Km radius from the surveyed markets. All
respondents reported that they depend on the nearby markets for major food items (such as
rice, potatoes, red lentils, soybean oil, fish and vegetables) which they can reach by walking. The
frequency of purchase is once or twice a week for most of the respondents.
Almost all selected markets were affected by the flooding except the Sonalia Bazar under Pekua
Upazila and Badarkhali Bazar under Chakaria Upazila. According to the MMC members and
community people, the affected markets were completely shut-down for around 3-6 days.
Though the markets started to open after the initial shock of 3-6 days of severe rainfall and flash
flooding, some remained inaccessible for around 3-5 more days due to slowly receding waters.
The table below gives a detailed picture of the market status during and after flooding:
Table 02: Status of sampled markets during and immediately after the floods:
Upazila Union Name of
markets
Number of
days the
markets were
shut down
Additional number
of days the markets
remained
inaccessible
Ramu Kawarkup Kawarkup Bazar 3 2
Ramu Between Gorjonia
and Kachhapia
Gorzonia Bazar 4 2
Pekua Pekua Pekua Bazar 2 1
Pekua Between Ujantia
and Mognama
Sonalia Bazar Not Affected
Pekua Baro Bakia Saudagor Hat 3
CXB Sadar Chowfaldani Chowfaldani
Bazar
3 5
CXB Sadar Between Pokkhali
and Gumatoli
Pokkhali Bazar 6 5
CXB Sadar Piemkhali Piemkhali Bazar 5 5
Chakaria Khutakhali Khutakhali Bazar 5 4
Chakaria Manikpur Manikpur Bazar 6 4
Chakaria Badarkhali Badarkhali Bazar Not Affected
Source: Field Survey, 22-23 July 2015
However, during the RMA period (22-23 July) all markets were found fully accessible.
10
8. Supply and Restocking
The supply sources for both the retailers and wholesalers in the selected markets remained the
same before, during, and after the flood. The supply chain was disrupted during the flooding but
became normal immediately after the flood water receded. Due to accessibility problem, the
traders couldn’t restock the basic food items from around 25 June to 05 July. This matches with
the JNA findings of consumer complaints about unavailability of food in the markets. But soon
after the water receded, all traders reportedly replenished their stock within 2-4 days.
9. Consumer Behaviour During and After the Flood
During the initial shock period (first 3-5 days of flooding), the markets were totally shut down
and people were struggling to safeguard their assets and livelihoods. The MMC members
reported a 70-80% decrease of consumers immediately after the shock when the markets were
open but inaccessible. During the RMA (22-23 July) they still reported to have 20-25% consumers
less compared to normal times.
From the FGDs with MMC members some changes were identified in the consumption pattern
which were further triangulated with the FGD information from community people. The major
changes in the consumption pattern include:
a. Purchasing less food items
b. Purchasing lower amounts of food items
c. Purchasing cheaper food items
The Venn-diagram below shows the changes in consumption pattern in form of the summation
of normal frequency of each option in the FGD dataset.
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Therefore, as a result of the flooding, most people started purchasing lower numbers and lower
amounts of food items; and both the MMC members and community people identified loss of
livelihood and income as main reason behind the changes.
10. Conclusion and Recommendation for Unconditional Transfer Modality
This assessment examined the market structure, variation in price before, during and after the
flood, accessibility to markets, status of supply chain and restocking, and consumer behaviour
during and after the flood. From the analysis of FGD data, the RMA team identified that the
sampled markets have good linkages with local and regional supply nodes and all markets
became fully accessible and replenished the stock immediately after the flood water receded.
During the RMA period (22-23 July) most people living within the catchment area could access
the markets easily on foot.
Map- 2 shows the changes in status of the markets from flooding period to RMA period (22-23
July). Based on the findings on the current status of these markets, the study team is of the
opinion that those markets which were not covered by the RMA are more or less similar to the
sampled markets in terms of structure, capacity, connectivity and accessibility; hence it can be
assumed that they are already fully functioning. Therefore, it is concluded that unconditional
cash transfer would be the most appropriate transfer modality for the immediate flood response
phase.
A
B
C
D
Legend
A = Total 11 FGDs
B = 10 out of 11 FGDs identified purchasing
less food items as a change
C = 8 out of 11 FGDs identified purchasing
lower amounts of food items as a change
D = 5 out of 11 FGDs identified purchasing
cheaper food items as a change
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However, it is also necessary to explain that at the time of the RMA there was heavy rain, which
continued for 6-7 days and resulted in another spell of widespread flooding in Cox’s Bazar district.
Against the backdrop of the ongoing and projected heavy rainfall - while going ahead with the
unconditional cash transfer - the RMA team strongly recommends for:
Rapid identification of newly affected areas/communities
Quick collection of loss and damage data; and
A very rapid investigation of markets in the newly affected areas through phone calls to
key informants (Local Government Officials, Local NGOs, Market Management
Committee members and traders)
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