Gap in wholesale and retail vegetable prices widens on cash shortage

The difference between model (wholesale) and retail prices of primary vegetables has widened during the past three weeks, with wholesalers allegedly taking undue advantage of demonetisation to exploit farmersData compiled by the government-owned National Horticulture Board (NHB) showed a 63 per cent decline in brinjal round wholesale prices in Delhi's mandi since November 8 -- the day the note ban announcement made. The vegetable currently trades at Rs 325 a quintal. The price decline, however, was partly passed on to consumers in the retail markets. In Delhi, brinjalround price shed 32 per cent since November 8 to trade at Rs 1,500 a quintal on Friday. Similarly, cauliflower and cabbage prices have also fallen more in retail markets than in wholesale due to high margins maintained by retailers.The current scenario, however, goes against the promises of the government, which ensures increasing income to farmers. Farmers bear the brunt of the losses, selling a number of vegetables in haste, amid fears of their remaining unsold and thereby adding to the cost incurred by farmer in the form of carryover.  Astrology and Numerology Trading Tips

"Wholesalers are paying farmers less deliberately, blaming inadequate availability of cash due to demonetisation. As a result, vegetable prices are falling in wholesale markets. But, there has been no government control over retail prices. Hence, retail prices have been ruling high as the decline in wholesale price is not fully passed on to consumers in retail markets. We have, therefore, urged the government to put a cap of 15-20 per cent on retail margins to make vegetables available cheaper for consumers," said Shri Ram Gadhave, President, Vegetables Grower Association of India (Pune, Maharashtra).  Stock Market Astrology Tips