Wholesale markets: Hoarding, rise in demand blamed for price hike

Muhammad Yousaf said wholesale dealers purchase commodities through bidding.

ISLAMABAD:

Traders and wholesale dealers in Sabzi Mandi have termed the sharp rise in demand as well as hoarding as primary reasons behind the increase in commodity prices.

However, it is the consumers that ultimately suffer the most due to an increase in prices.

Talking to The Express Tribune, Usman Ali, a wholesale dealer, said, “Last year, a high number of farmers cultivated potato, resulting in a high supply of the commodity compared to the demand that lowered its price. Keeping in mind the low demand last year, very few farmers grew potatoes this year which is why its price has shot up.”

Muhammad Yousaf, a commission agent at the fruit and vegetable market, said wholesale dealers purchase commodities through bidding. “It is up to the commission agent to fix the starting price of his commodity no matter how high or low it is, keeping in view the supply and demand,” he said.

“In Ramazan, the demand of various commodities increases which is difficult for farmers to meet, resulting in a rise in prices,” Yousaf said.

He  hoarders create artificial shortfall of csaid sometimes farmers orommodities, especially non-perishable items such as onion and garlic.

“In some cases, the demand of the commodity is low while we have purchased it at a higher price, so in order to sell it we fix a low rate,” he said.

Published in The Express Tribune, July 14^th, 2014.