Why vegetables’ base price reach ₹40/kg and will it be permanent?

This monsoon season, no vegetable is available below ₹40/kg for consumers in most of the places. Even if there is a wide gap between what farmers get and what consumers pay, the horticulture growers are still happy as they think the current rates may be permanent except in some vegetables which are on higher side due to seasonal factor.

“It is good that vegetable prices are also good now since the government never announces their prices, unlike paddy, wheat, maize and pulses,” said Ankit, a daily wage labour engaged in farming along Yamuna bank in Gautam Buddha Nagar district of Uttar Pradesh.

Referring to the minimum support price (MSP), which is announced by the government, he said vegetable farmers take risk as they depend on market rates and hence deserve to get “a good price”, he said. He could not explain what is the good price but expressed satisfaction at current rates.

Shree Ram Singh, head of Krishi Vigyan Kendra of Mirzapur in Uttar Pradesh, said that small farmers grow vegetables, which can be harvested in 60 days, mainly as they need cash and they may not shift to agriculture crops. Singh said that the prices of agricultural crops will also have a bearing on current prices of vegetables, but rates may decline once the rainy season ends and supplies improve.

“There was very high temperature in summer that affected some vegetables yield and this could be reason for lower supply,” Singh said. Mirzapur is famous for growing green peas, tomato, chilli, and bottle gourd. Farmers normally get ₹15/kg when the same vegetable is sold to consumers at ₹40/kg, he added.

However, some experts said that since large farmers can take a decision to shift to other crops based on the profitability of vegetables and supplies are dependent on them, the market rates of vegetables get aligned with other crops.

A former top official of the agriculture ministry said that as awareness level has gone up among farmers, those who have holding capacities are not ready to sell at distress. Besides, traders who know about the supply situation particularly in a shortage, they buy the produce from mandis and keep at the cold stores from where they do regulated release, he added.

Deendayal Maurya, a farmer in UP’s Badaun district, said that he mostly grows leafy vegetables which are of very short duration and help him to earn at regular interval. However, the production got affected this year due to high temperature and currently he is waiting to harvest dill (soa saag) once rains stop and field is dried.

India’s vegetables production 2023-24 is estimated at 204.96 million tonnes. While the agriculture ministry sees higher production of Bottlegourd, Bittergourd, Cabbage, Cauliflower, Pumpkin, Tapioca, Carrot and Tomato, it has estimated a decline in output of Onion, Potato and Brinjal from 2022-23 levels.