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  • Category: Miscellaneous

    Supply and demand principle affecting both farmers and consumers?

    In business there is a principle when demand is more cost of the good become more but while the supply is more the cost of the item become cheap. Because of some good rains in this season the cost of some of the vegetables in my city gone down to very low like Ridge Gourd-Rs.5 per k.g., Lady's Finger-Rs. 10 per kg., Cucumber Rs.5 per kg., Tomatoes-Rs.10 per kg. Farmers because of transport charges to bring to the market simply they throw away their produce and everything get wasted away. But within few days we find Tomatoes price may raise up to Rs.70 or 80. In this way both farmers and consumers facing difficulties at one or the other time. Is there any solution to avoid such situations for both consumers and farmers?
  • #575119
    Demand doesn't depend on supply as many people think. If a person wants tomatoes this week, he/she wants tomatoes the next week too even if there is less supply. If supply is less, people who want to buy at any cost will buy the vegetables etc,. Keeping this in mind, the greedy sellers increase the prices. As middle class people etc,. are unable to pay such a high cost, it is a problem for them. As the author said, the costs are Rs. 5 or so at once and suddenly they are increased to Rs. 75 or so in the name that the supply is less. I don't think such situations can be avoided.

  • #575191
    Green vegetables cannot be stored for longer periods by the farmers. Since the farmers sow the seeds in the entire field at the same time, the plants grow simultaneously and start yielding consumable products at the same time. Thus the farmer suddenly gets a huge lot of produce to handle. Picking the ripened/fully bloomed products cannot be postponed and thus there remains no option available to the farmer but to pick the same and sell even at a throwaway price.
    The intermediaries take advantage of such situations and buy the products at cheap prices to transport and sell the same in the urban markets.
    This is not the case with the cereals and products like potato, onion, garlic etc. which can be stored for longer periods.
    The small farmers don't have their own vehicles for transporting the goods to the nearest wholesale market.

    Let us encourage each other in sharing knowledge.

  • #575196
    I am giving an example here. This is just an example, not making any promotion.
    Reliance Fresh is doing wonderful business by collecting vegetables and fruits from farmers at ideal price. The process is Reliance purchases all the products from throughout the country as per the local and recent price directly from the farmers and send to its all branches immediately. After reaching the products at stores, it fixes a universal price that all its stores will maintain. Due to which, the customers will get vegetable and fruits in an average price. Once I've complained about bananas in a Reliance Fresh store at Hyderabad, comparing the market price with stores'. The manager said the fact. In 2010, when tomatoes rate down at Bangalore to Re.1 and in Odisha it was around Rs.20; but in Reliance Fresh stores all over India the rate was Rs.5.
    Reliance is collecting the products from farmers and it has its own garden too; in this process the farmers and consumers can be benefited.

    Naresh Kumar
    'Every bad situation will have something positive. Even a dead clock shows correct time twice a day.'

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