Study finds vegetable prices increasing by 170% from farm to consumer

Mendrelgang gewog under Tsirang Dzongkhag grows all sorts of vegetables and is said to be one of the major vegetable suppliers in the country.

A recent study by the Consumer Empowerment & Economics Division (CEED) of the Climate Change Adaptation and Action (CCAA) has uncovered identified four different supply chains, noting that prices can increase by up to 170 percent from farm to consumer. While fewer intermediaries might keep prices lower, the quality of produce often suffers.

Mendrelgang Gup, Yeshey, said, “We don’t have large vegetable growers in the gewog. The maximum is around 20-30 decimals.”

The study involved 50 vegetable growers from Mendrelgang Gewog, as well as 10 middlemen, 6 wholesalers, and 18 retailers.

Findings showed that 68% of the growers are women and over half have no formal education.

“There are around four to five vendors who buy vegetables from the villagers. They all set the same price, which is very low for the vegetable growers. The vendors tell the growers that there’s no good price in Thimphu, and they have no other choice but to sell at the vendors’ price. It would be helpful if the government could look into this matter and perhaps set prices that would benefit not just the vegetable growers but also the wholesale vendors and vegetable vendors in Thimphu,” he further added.

Only 18 percent of growers own vehicles, meaning they heavily rely on middlemen for transportation, which greatly affects pricing.

The vegetables growers face significant challenges such as high input costs, pests, diseases, and insufficient irrigation. Price fluctuations and reliance on middlemen further complicate their ability to earn good returns.

The study focused on four key vegetables: chili, cauliflower, cabbage, and beans, all of which are vital to the Centenary Farmers Market (CFM) in Thimphu.

To address these issues, the study suggests introducing modern farming technologies, providing better market information, and forming cooperatives to achieve economies of scale. Establishing dedicated wholesale centers with modern amenities like cold storage could also help.

The middlemen encounter difficulties like restricted access to the CFM premises, limited parking, and inadequate spaces for unloading and storage.

Wholesalers and retailers also deal with insufficient space and lack of cold storage, which hampers efficiency. The study underscores the need for a more efficient vegetable supply chain to benefit both producers and consumers.

Steps, like reducing post-harvest losses and improving market information systems, can also make a big difference.