Farmer to APMC at Rs 2-5 per kg, semi-wholesale to agent at Rs 7-10, agent to local market and vendor at Rs 16-20 and vendor to consumer is anyone's guess
Farmer tou00a0APMC at Rs 2-5 per kg, semi-wholesale to agent at Rs 7-10, agent to local market and vendor at Rs 16-20 and vendor to consumer is anyone's guess
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Consumers might be relieved while assuming that the cost of vegetables has come down drastically, but their joy will be short-lived if they realise that they are still paying vendors much more than they actually should.
MiD DAY conducted a reality check and found that vegetable vendors and agents are the main culprits behind why you pay such high prices when produce reaches the markets at three or four times less than what you pay.
If wholesalers are to be believed, then dadagiri by agents and local vendors to double their own profits is resulting in consumers being bullied into paying exorbitant rates for vegetables.
Reality check
When MiD DAY conducted a reality check, it was learnt that vegetable vendors and agents are the main culprits behind why you pay such high prices when produce reaches the markets at three or four times less than what you pay.
The cost of vegetables from farmer to APMC is Rs 2 to Rs 5 per kg, which is then sold to agents at Rs 7 to Rs 10 at most to cover transportation and other costs.
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Buying bulk stock at these rates, agents then supply the vegetables to local markets and vendors after raising the price further to Rs 16 or Rs 20.
When we checked with vendors at local markets, we noticed that the rates had further increased and consumers were forced to pay exorbitant prices for vegetables that started out at between Rs 2 and
Rs 5.
Wholesaler speak
According to wholesaler Abdul Gaffar, owner of Abdul Gaffar & Co at APMC, vegetables are supplied to the small markets and then to local vendors. Gaffar who deals in potatoes and onions said, "We have been supplying good quality onions at Rs 10 per kg.
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The rates have gone down due to the favourable weather conditions and we now have bulk stocks. Potato rates have remained steady at Rs 6 to 7.5 per kg and presently there is no shortage of stock. It is the middlemen or agents and local market vendors who bully the consumer."
The cost of onions from farmer to APMC is between Rs 3-5 and is increased by Rs 2-3 at most, which covers transportation and other costs, but while being transported from Vashi to Mumbai markets, the rates keep increasing and vary from market to market.
The local markets sell the same onions at Rs 16 to Rs 20 and rates are increased even further by local vendors.
Local vendor Raju from Ghatkopar market said, "Agents who act as middlemen supply to us at high rates, and hence we have to increase our rates. Transportation charges and other costs incurred result in the increase in rates of vegetables."
So far in the Mid Day campaign...
Peeling layers off the onion trade
As the hue and cry over an unprecedented hike in onion prices hitting R100/kg ebbs, MiD DAY exposes the invisible hand of the cartel behind the rise.
Economics of the vada pav
Prices of pulses and vatana, ingredients that go into making your favourite vada pav, go through a 150 per cent hike from the farmer's hand till it reaches the retailer.
Who's adding to your food bills?
Food inflation hit 17% last month. The common man has almost resigned to the fact of steady price rise. But farmers are none the richer. MiD DAY aims to fill the gaps from the farmer's hand till your plate.
Blackmail on the fields
Vegetable mafia manage to arm-twist the farmer into selling stock at a ridiculously lowu00a0 price in the traders' market, as the farmer does not have the money to cart his goods directly to Mumbai.
Octroi mafia pushing up vegetable prices?
While vegetables are exempt from octroi, illegal agents in conjunction with octroi officials charge a tax of their own to let the trucks enter the city, thereby causing an increase in prices.
In a month-long extensive campaign, MiD DAY will unravel the tangle of farmer-middleman-hoarder-politician nexus that is ultimately leaving a sour taste in your mouth.
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