Vegetable prices see sharp drop in Maharashtra as demand falls

Prospects of higher production add to the decline

Prices of most vegetables have fallen sharply in Maharashtra this month, mainly due to better crop output prospects in the current harvest season, thanks to a more even distribution of monsoon rainfall immediately before its withdrawal.

This month, the price of tomatoes has dropped 41 per cent in the Vashi (Navi Mumbai) wholesale APMC market to trade at Rs 26 a kg on Monday. Brinjal and ladies finger have fallen 27 per cent and 21 per cent to Rs 16 a kg and Rs 11 a kg, respectively.

These mean a fall of up to 50 per cent from the peak level in the third week of July, when a month of delay in monsoon had delayed sowing and threatened the standing crop.

“Around 80 per cent of vegetables traded in the Vashi APMC are trading lower. Normally, prices remain elevated during the festive season. The last spells of rainfall proved a boon for vegetables crops, especially in the major growing regions of Maharashtra. And, the government’s repeated assurances to consumers about not letting the prices of agricultural commodities go up has had an impact,” said a senior official at the APMC.

However, the price of cauliflower and drumstick rose 67 per cent and 28 per cent in the month, to quote at the Vashi mandi at Rs 20 a kg and Rs 46 a kg, respectively.

“These are some of the vegetables that are still in short supply. There was over a month of delay in sowing and a proportionate delay in maturing. Full harvesting is expected to commence in the second week of October. Then, arrivals will begin in a big way,” said Sanjay Bhujbal, a cauliflower trader in Vashi.

A steady increase in arrivals and weak consumer demand has also contributed to the price fall. Against daily average consumption in Mumbai and its suburbs of 1,800-2,000 tonnes, total supply is estimated at 2,500 tonnes, about 200-250 tonnes more than in July.

A study by Nomura Global Economics estimates the consumer price index rise at seven per cent in September, against 7.8 per cent in August, largely due to a fall in vegetable prices.

“Vegetables will be cheaper in the coming weeks, with the momentum of increase in arrivals,” said Suryakant Dhawale, a cabbage vendor.