Price of veggies stabilise

by Gamini WARUSHAMANA

The price of vegetables has now stabilised giving a reasonable profit to the farmer as well as making vegetables affordable to the consumer, as supplies are back to normal.

The wholesale price of vegetables at the main supply hub, Dambulla Economic Centre has now reached normalcy from its peak in February, March and early April.

Wholesale prices of some commodities at the Dambulla Economic Centre were as follows: Beans Rs. 40-50/Kg, carrots; Jaffna Rs. 60-65/Kg, Hanguranketa Rs. 80-85/Kg and Nuwara Eliya Rs. 100-115/ kg, Leeks Rs. 40-45/Kg.

A spokesman for the Managing Trust of the Dambulla Economic Centre said that vegetable supplies now reach from all producing areas like Nuwara Eliya, Welimada, Embilipitiya, Wellawaya, Puttalam and Jaffna.

As supply increases the price of vegetables has started to vary on quality and as a result prices of some vegetables which came from Jaffna have come down. Jaffna beet root sold at Rs. 140-170 in February and March has now dropped to Rs. 80-85.

There is a sharp drop in the low country vegetable price as well. For instance loofah sold at Rs. 120/kg in early March has now reduced to Rs. 18-20/kg. Red onion supplies from Jaffna, Puttalam and Trincomalee are coming in to Dambulla market and the wholesale price is between Rs. 100-130/Kg.

However, the retail price of most vegetables is over 100 percent higher than the wholesale price.

Sources said that between 50,000-75,000 kg of vegetables are dumped daily at Dambulla market causing huge losses to the farmers and traders. Unplanned cultivation resulting in over supply is one reason for this and these days varieties of cucumber cannot be sold even at Re. 1/kg.

Most of the stocks brought by farmers are discarded without being traded. Post harvest losses have not come down so far and use of plastic baskets to transport vegetables is not taking place although. The Ministry of Consumer Affairs made it compulsory in March.

Meanwhile, economy analysts said that inflation in April will further increase despite price of essential commodities such as rice, vegetables and fish dropping sharply. The point to point inflation which measures price increase, compared with April 2010 prices will increase close to or above 10 percent.

The reasons for the increase are the price increase of gas, fuel, wheat flour and bread which have significant weight on the CCPI as well as a technical issue called the base issue.

In April 2010 inflation decreased over 1 percent and this decrease creates a base effect on this year's index.

Point to point inflation in March was at 8.6 percent and the increasing trend and resulting high inflation expectations may create pressure on a wage increase, analysts said.