Vegetable price gaps between retail and wholesale is close to 49%: ASSOCHAM
Difference between Wholesale Price (WSP) and Retail prices for essential vegetables have gone up beyond 49 per cent in the year 2013-14 underscoring the widening gaps between the prices at which procurement is done from farmers and the price level for consumers, according to ASSOCHAM recent paper.
Majority of Indian retailers are selling vegetables at prices which are significantly higher than the WPI, reveals the ASSOCHAM latest study on "Vegetables Wholesale and Retail Price Discrepancy". Normally, the difference between WSP and retail prices on an average stays around 30 per cent and it has been much more as seen in the findings of paper.
Commenting on ASSOCHAM findings, its Secretary General, D S Rawat said, WSP 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.
The study has considered nearly 33 market centers in India including Abohar, Agra, Ahmadabad, Amritsar, Bangalore, Baraut, Bhopal, Bhubaneshwar, Chandigarh, Chennai, Dehradun, Delhi, Gangatok, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, Nasik, Patna, Pimpalgaon, Pune, Raipur, Ranchi, Shimla, Surat and Trivendrum.
The study reveals that most of centers that have recorded huge discrimination between the wholesale prices and retails prices, out of 33 centers, nearly 18 centers are charging more than all India average retail prices and wholesale prices, adds the paper. The retail prices are over and above 85 per cent to the wholesale prices.
It further points out, In category-III, the retail prices of vegetables charging more than 50 per cent of the wholesale prices in top centers include Amritsar (120.5 per cent) followed by Abohar (107.4 per cent), Agra (90.2 per cent), Nagpur (82.8 per cent), Ahemdabad (69.4 per cent), Delhi (68.9 per cent), Chandigarh (68.5 per cent), Dehradun (67.4 per cent), Jaipur (64.6 per cent) and Mumbai (63.5 per cent).
In category-II, the retail prices of vegetables ranges from 30-50 per cent of the wholesale prices in top ten centers include Surat (49.7 per cent) followed by Lucknow (48.5 per cent), Shimla (37.9 per cent), Jammu (37.5 per cent), Chennai (34.6 per cent) and Guwahati (33.7 per cent).
(Posted on 23-05-2014)