Plummeting veggie prices hit farmers

By Gamini Warushamana - Reporting from Dambulla

Vegetable prices have plummeted causing losses to farmers. The wholesale price of vegetables at Dambulla Special Economic Centre (DSEC) recorded a very low level with most of the items priced between Rs.10-30/kg. Farmers said that prices of some items were below the cost of production.

The low prices have prevailed for over a month due to excess supply and the decline in demand. Extremely high vegetable prices in the recent past motivated farmers and as a result a large extent of land has been used for vegetable cultivation this Yala season, farmers and traders in Dambulla said.

Supplies from Jaffna, Melsiripura and Galenbindunuwewa, Dambulla, Matale and Bakamoona areas are reaching Dambulla DSEC.

An official said that over 400,000 kg of beetroot and red onion come from Jaffna daily. Farmer T.Sumanaweera who brought a large quantity of cabbage to the market last Thursday said that the market price of Rs.20/kg is not profitable. However, another farmer said that the price drop has reduced profit margins but covers cost of production.

Traders said that the demand was low during the past few weeks but were unable to figure out reasons.

The home gardening program of the government may be a reason, they said. The campaign sponsored by the government has resulted in vegetable production at household level increasing, T.M.Balasooriya, a farmer said. However, there is no mechanism to monitor vegetable production at household level. Farmers said that this is a vicious cycle that they have to face every year.

They decide on crops to be cultivated on price signals in the market.

There are no other in dicators or supporting agencies that help them in decision-making. As a result, all farmers cultivate the same crop and finally an oversupply causes the market to crash.

If the demand declines as a result of household level vegetable production (home gardening), what will the future hold for the commercial farmer?.

Analysts said that there should be a campaign to increase vegetable and fruit consumption or otherwise the supply chain of these essential food commodities will collapse. At present the fruit and vegetable consumption is low and there is potential for increase.

Lower prices alone will not increase consumption. A campaign to change consumption patterns is needed, they said.