Demonetisation leads to fall in prices of vegetables, flowers in Mumbai

Most retailers are busy exhausting their old stocks as consumers have decreased. People are thinking twice before parting with bank notes of lower denominations

Demonetisation has brought down the prices of vegetables and flowers in Mumbai. This is because most retailers are busy exhausting their old stocks as consumers have decreased.

Vegetable vendors have stopped taking Rs500 and Rs1,000 notes and people are busy saving bank notes of lower denominations. (HT File Photo)

Take the case of tomatoes that are selling at Rs20 per kg, which is cheaper when compared to Rs25 per kg last week. The price of red chillies has also come down to Rs 60 per kg from Rs 70. Similarly, the rate of onion has decreased to Rs 20 per kilo from Rs 25.

Vegetable vendors have stopped taking Rs500 and Rs1,000 notes and people are busy saving bank notes of lower denominations.

According to a vegetable seller in Parel, there has also been a decrease in the number of vehicles coming from the APMC market. “There is significant drop in the stock coming from the wholesale market,” said the trader.

The yellow marigold witnessed drop in rates — from Rs 40 a kg to Rs 35.

According to Adarsh Shetty, president, Indian Hotels Restaurant Association (AHAR), the hotels are being offered discounts by vegetables vendors. “Our business has come down by over 50 %. Our own stock is still lying idle,” he said.