Nepal: Gap between retail and wholesale prices widens

Retailers are charging up to 45 percent higher than the wholesale price for vegetables. Retail prices set by shopkeepers who have set up their shops inside Kalimati Fruits and Vegetables Market premises are far different from the wholesale price. Normally, a 10-15 percent of difference between wholesale and retail prices is acceptable. In the name of soaring transportation cost and shop rentals, they charge exorbitant prices from consumers who are mostly unaware about the actual wholesale price of different vegetables as no information mechanism exists for this purpose. According to a market study done by Republica on Sunday, retail prices are varying in Kalimati, Baneshwor and Koteshwore retail markets. These three are the leading vegetable markets in the capital.

"As there is no monitoring of vegetable and fruits prices, consumers are forced to pay what retailers are asking,” said Arjun Aryal, director of Kalimati Fruits and Vegetables Market Development Board (KFVMDB). Aryal said due to perishable nature, none can predict the price of vegetables and this results in volatile pricing in the market. Republica´s study shows that the widely used vegetables such as red potato, white potato, big tomato, small tomato, local cauliflower, cabbage, ginger, onion and garlic are the ones which see maximum differences between retail and wholesale prices.

On Sunday, KFVMDB stated wholesale price of red potatoes stood at Rs 19 per kg, white potatoes at Rs 13 per kg, big tomatoes at Rs 20 per kg, and small tomatoes at Rs 25 per kg. Likewise, cauli local cost Rs 35 per kg, cabbage Rs 16 per kg, and garlic dry-China and garlic dry-Nepal cost Rs 67 and Rs 83 per kg on Sunday at the Kalimati wholesale market. Manoj Khadka, a retailer at Baneshwor vegetable market, said rising transportation cost is forcing retail traders to charge higher prices. However, consumers are saying that money-minded retailers are fleecing them with unnatural prices in the name of transportation cost.

Source: myrepublica.com