Heavy rains hit supply of vegetables; prices soar 40% in Delhi-NCR

Prices of vegetables in Delhi-NCR witnessed a surge by 35 to 40% over a month as heavy rains in several parts of the country have hit the supply line, industry body Assocham said.

"Vegetables such as ladyfingers, cabbage, beans, brinjal, bitter gourd, have increased by 35 to 40% over a month as heavy rains in several parts of the country have hit the supply line to Delhi-NCR," said the Assocham paper.

The prices in New Delhi's wholesale markets have gone up by nearly 35 to 40% over a month. Traders at the Azadpur Mandi, Asia's largest wholesale fruits and vegetables market, said crops are not coming out of the fields due to stagnant water in fields, leading to shortage. Also, the weather department also has predicted similar weather condition for the next few days.

The Assocham findings reveals that the perishable fruits and vegetables will bear the maximum brunt. Traders in Delhi said green or perishable vegetables like cabbage, Okra (bhindi), brinjal, Karela and coriander recorded high wholesale rates.

The disparity between Wholesale Price (WSP) and Retail prices for essential vegetables like bhindi (Okra), cabbage, Karela went up beyond 35 to 40% from 30 June to 30 July 2016, according to Assocham recent paper.

The crop lying in the field is bound to rot due to heavy rains. The crop is not coming out of fields and hence there is a short supply in the market, adds the paper.

Okra, which were available for Rs 20 to Rs 25 a kg, are now being sold at Rs 35-40 per kg in the market. In some of the localities in the city, vendors quote Rs 50 a kg of Okra.

The majority of Indian retailers are selling vegetables at prices which are significantly higher than the wholesale price index (WPI), reveals the Assocham latest study. The difference between WSP and retail prices on an average stays around 35 to 40%.

Wholesale price have benefited multiple times middlemen and traders, particularly for sale of essential commodities and worst hit in the process remained farmer and consumer as farmers margins squeezed badly with consumers paying unreasonably higher prices.

Due to difference in both prices of wholesale and retail prices, the extra amount which end consumers are paying for vegetables is utterly disproportionate, adds the findings of the paper.

The essential vegetables incorporated in the study are brinjal long, brinjal round, Cabbage, Garlic, Ginger, Chilly, Okra, Peas, Potato fresh, Potato store, Tomato hybrid and Tomato local, highlights the paper.

Assocham urges government needs to improve infrastructure facility through encourage public private partnership (PPP) initiate for the development of cold storage and facility should be provided those farmers which are coming from the long distance area.

On the retail front, the analysis has observed that retailers are charging very high prices as compared to wholesale prices of the vegetables. In such scenario, government needs to play proactive role to control the retail price through surveillance scheme, adds the paper.