You're paying more despite dip in prices

Traders say rise in transportation cost is robbing end consumers of the benefits of falling prices as they have to pay more to bring vegetables from wholesale to retail markets

Traders say rise in transportation cost is robbing end consumers of the benefits of falling prices as they have to pay more to bring vegetables from wholesale to retail markets

THE recent hike in fuel prices has robbed end consumers of fruits and vegetables of the benefits of the natural demand-supply cycle.



Thus, despite prices of chilli, for example, dropping by 10-20 per cent in the wholesale APMC market in Vashi, consumers in retail markets at Dadar and Borivli are ending up paying Rs 5-6 more per kg than they were earlier.

Traders attribute this to the increased price charged by transporters to take the vegetables from Vashi to retail markets in the city. Mohammad Harish, a vegetable trader at APMC, said, "I am paying Rs 19,000 per truck for transporting chilli from Hubli to the APMC market compared to the Rs 16,000 I was paying earlier.
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Local transportation companies are also charging Rs 5-6 more to transport a 50 kg bag to Dadar and Rs 8-9 more for Borivli."

Traders say that slowing demand has kept the usual increase in vegetable prices during the Monsoon in check and the present price rise is largely because of transportation costs. While vegetables have seen an average 30 per cent rise in prices across the spectrum, fruits have seen a 10-15 per cent spike.

Ganesh Chouhan, a marketing executive, still buys vegetables at a higher price at Dadar market

Subhash Dumbre, a fruit trader said, "Transportation rates have increased from Rs 1.8 to 2.5 per kg after the hike in fuel prices. We have to pay more when we bring the fruits to the wholesale market and retailers have to pay more for transporting them to retail markets. All this eventually adds up to the end consumer having to shell out more.

Traders say the prices of oranges and apples are steady because they are being imported, but even that is set to change.
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Arjun Kumar Dube, another fruit trader from APMC, said, "We are importing apples and oranges from Chile, US and Australia, because the Indian harvest is yet to happen. Once the Indian variety starts hitting the market, transportation cost will lead to an increase in prices of these fruits too."

Subhash Dumbre, a fruit trader at APMC Market

Consumers' take
Helpless consumers complain that the rising prices are disrupting their budgets.u00a0 M Islam, an interior designer from Dadar, said, "We are already paying extra for our daily needs. We cannot afford another hike in the prices of vegetables and fruits."

Ganesh Chouhan, a marketing executive from Kalyan, questioned the rationale of the hike in petroleum prices when the common man was already burdened with ever-rising inflation. "Hike in prices of essential commodities has become a regular occurrence. We should get used to it," he said sarcastically.