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Vegetable prices in Azadpur wholesale market have risen in the range of 20-40 per cent in January 2015 as compared to the corresponding period last year. A few items saw a rise beyond this range. While carrots turned expensive by 129 per cent, peas, spinach and cabbage prices increased 87 per cent, 182 per cent, almost 96 per cent, respectively.
Data sourced from Agmarket.nic.in, which falls under the Directorate of Marketing and Inspection, Ministry of Agriculture, showed that potato prices have fallen by 26 per cent during the same period. So did those of apple, among fruit.
Agmarket sources its data from all the registered mandis across the country, which falls under the ambit of Agriculture Produce Marketing Committee Act (APMC). However, data sourced from individual mandis might show a different trend as arrivals vary. The government for policy purposes usually relies on Agmarket data.
Data also showed that prices of carrots were up 129 per cent in January year-on-year, of peas 87 per cent. Cauliflower prices rose 23 per cent during the same period, tomato 44 per cent, brinjal 40.4 per cent and tur dal 28 per cent. (see chart).
Vegetables have a miniscule 1.74 per cent weight in the Wholesale Price Index (WPI), inflation in which would move only slightly even if prices rise substantially. Besides, potatoes have a weight of 0.2 per cent in WPI.
Vegetables as a category showed deflation (decline in prices) of 4.78 per cent in December year-on-year, which meant prices started rising substantially in January.
However, as compared to December, prices of some vegetables were down in January, perhaps due to seasonal impact and to some increase in output. Peas’ prices dropped 1.87 per cent between December and January, while carrot was 23 per cent down. Cauliflower was 65 per cent cheaper in January 2015 as compared to December 2014.
Seasonal fruits were cheaper even on a yearly basis. For instance, apple prices were almost 47 per cent less than last year. Month on month, prices were nine per cent higher in January as compared to December. Fruits have a 2.11 per cent weight in the WPI.
The WPI inflation was only 0.11 per cent in December, a moderate rise from the flat prices in November.
“Potatoes are the cheapest this year and prices are expected to fall further in the coming months, barring a minor increase around late February and early March, when it is stored. Production is much better this year as compared to 2014,” said Trilok Chand, one of the biggest wholesale traders of potato at Azadpur.
“There has been an increase in prices as compared to last year’s mainly due to rain in some parts of the country and uncontrolled export of tomatoes, chilli and onion to Pakistan,” said Rajendra Sharma, president of the Azadpur market committee.
He said the impact of low fuel prices was usually felt on commodities which have a fixed selling price. In fruit and vegetables, it is primarily a function of demand and supply.
“In the peak arrival months of October to December, we used to get 2,500 trucks of fruits consisting of 10 tonnes each in Azadpur, which continued this year as well. So, there is no supply shortage,” said Rajkumar Bhatia, one of the biggest fruits traders in Azadpur.
