Finally got some cash? Get ready to spend more on buying vegetables in Maharashtra
Prices of vegetables witnessed dipped by 20% a day after Prime Minister Narendra Modi scrapped Rs500 and Rs1,000 notes, in a bid to curb black money.mumbai Updated: Nov 18, 2016 11:54 IST
With farmers stopping the supply of produce to agriculture produce market committee (APMC), brace for a rise in prices of vegetables and fruits in the coming days.
The immediate impact of demonetization of higher currency notes was a fall in prices of fruits and vegetables. But experts say the trend is likely to reverse in the coming days.
Prices of vegetables witnessed dipped by 20% a day after Prime Minister Narendra Modi scrapped Rs500 and Rs1,000 notes, in a bid to curb black money. Farmers from Khed Shivapur, Gogalwadi and other neighboring villages in Pune district and Satara said they have been forced to stop getting their produce to the APMC, as they are not getting the right price owing to poor demand in view of shortage of currency and traders are buying their vegetables on credit.
“The short supply of vegetables might lead to a rise in prices in the coming week,” said Sakharam Deshmukh, a trader at the Pune Market Yard.
Officials from the Maharashtra State Agriculture Marketing Board (MSAMB), however, said the situation will normalize in the coming week as banks will distribute additional money. “Last week, both customers and traders were short on currency, which led to a drop in demand. With banks willing to distribute additional money, we expect the rates to pick up and normalize very soon,” said Bhaskar Patil.
According to Patil, farmers will not be able to hold supply for a long as vegetables are perishable community. Once farmers restart their supply, prices will come to normal, he said.