The document on vegetable inflation that studies the prices of tomato, onion and potato (TOP) indicates that onion producers receive only 36% of consumer spending, for tomatoes 33% and for potatoes 37%.
“Since vegetables are perishable commodities, private mandis can be increased to improve transparency in marketing of best vegetables,” the newspaper said, adding that the competition can also help improve the infrastructure of the agricultural produce market committee. at the local level.
The research suggested that there is “a significant negative relationship” between monthly availability/availability-to-use ratio and consumer price inflation for the three vegetables, while controlling for other factors such as input costs, rainfall and wages.
It is worth noting that the recent pressures on headline inflation have been attributed to food inflation and within that, the volatile TOP vegetables have been the most challenging.
Research conducted by Department of Economic Research (DEPR) staff along with external authors found that electronic national agricultural markets (e-NAM) should be leveraged to help reduce current inefficiencies in the markets, which will lead to an increase in prices received by farmers and also reduce prices paid by consumers.
He spoke in favor of promoting more farmer organizations in TOP vegetables and also launching onion futures trading, especially for the winter harvest, for optimal price discovery and risk management.
The document also makes other suggestions on the storage of major commodities, their processing and ways to improve productivity.
Meanwhile, a similar study on pulses inflation focusing on gram, tur and moong said that around 75% of the consumer rupee spent on gram (chana) circulates back to farmers, the ratio is around 70% for the moong and 65% for the tur.
The RBI clarified that the opinions contained in the articles do not belong to the institutions to which the authors belong, adding that these articles represent research in progress.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.