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Diesel, supply disruption push up vegetable prices: Traders
On Thursday, most retail markers in Delhi sold tomatoes for ₹70-80 per kg, capsicum at around ₹100-120 per kg, okra for ₹90-100 per kg, ridge gourd for ₹100-110 per kg and cauliflower for around ₹60 per kg.
The retail and wholesale prices of vegetables such as tomato, capsicum, okra, ridge gourd and cauliflower, have witnessed an “unusually sharp increase” in the national capital over the last week.
Traders and wholesale market committees attributed the increase to the annual disruption in supply during the monsoon, but also to the increased margins by middlemen who have suffered losses in the lockdown months, and the increase in diesel prices that has a direct correlation with transportation cost.
On Thursday, most retail markers in Delhi sold tomatoes for ₹70-80 per kg, capsicum at around ₹100-120 per kg, okra for ₹90-100 per kg, ridge gourd for ₹100-110 per kg and cauliflower for around ₹60 per kg. The rates were up between 50% and 100% in the last one week, the traders said.
“There has been no stability. Vegetables usually get costlier in this season because of the rain. The loss is relatively higher for green vegetables, which are more perishable in nature. But this year many factors played to increase the prices too much in too short a time. This is unusual,” said Nilesh Kumar, a trader based at the retail vegetable market in south Delhi’s Mehrauli.
Records of Azadpur agriculture wholesale market, which accounts for more than 80% of the total supply of vegetables across Delhi, showed significant increase in prices. On June 25, the wholesale prices for tomato was₹14.75 per kg (on Thursday, this was ₹32), capsicum ₹10.25 per kg (₹32.5), okra ₹10.50 per kg (₹16.50), ridge gourd ₹9.50 per kg (₹12) and cauliflower ₹10.75 per kg (₹14).
While eastern and northeastern India continue to receive heavy rain, the monsoon is likely to intensify in the coming days in central and western India, the India meteorological department had reported .
“Prices go up in the monsoon because the losses go up and add to the cost of vegetables. But this year, the increase in diesel prices have contributed to a two-fold blow,” said Adil Khan, chairperson of the agriculture produce market committee in Azadpur.
The Azadpur market gets its largest share of green vegetables from states such as Uttar Pradesh, Haryana, Punjab, Rajasthan and Madhya Pradesh. But, tomatoes mainly come from Maharashtra, Karnataka and Himachal Pradesh.
The increase in retail prices in Delhi is disproportionate even if compared to the wholesale price increase, Haji Yamin, a wholesale vegetable trader based in the Okhla market, pointed out.
Yamin, said: “The increase in diesel price has a direct effect on transportation cost. That is likely to affect prices. But, other than that, traders and middlemen have also contributed to the disproportionate jacking up of prices in different levels to make up for the losses incurred during the lockdown months through increased margins, taking advantage of the monsoon price hike and diesel rates.”
Fuel prices have been soaring in the country since daily price revisions were resumed from June 7. The price of diesel rose by ₹11.14 per litre in about three weeks; on Thursday price of diesel per litre in Delhi was ₹80.53, Gurugram ₹72.81, Mumbai ₹78.95, Chennai ₹77.78 and Bengaluru ₹76.59.
Naveen Gupta, secretary-general of the All India Motor Transport Congress, said that the change in diesel rates usually takes some time to affect transport costs.
“Recently, the diesel rates have increased too rapidly in too short a time, and it is difficult to ascertain how that has contributed to increased costs of products in the agriculture sector. However, diesel comprises of around 65% of transport cost and an increase in diesel rate will definitely have a direct effect. But every market sector needs its own time to ascertain the effect of such complicated inter-related factors.”
