In India the Agricultural Produce Market Committee (APMC) markets, traders are restricted to a profit margin of up to 8%. Despite this, they circumvent the system by selling produce outside these markets with an additional 6% markup, subsequently increasing prices by 100%-200% for consumers. For instance, lemons purchased at ₹27.50 (approximately $0.34) per kilogram wholesale are retailed at ₹80 ($0.98) per kilogram. Potatoes, bought at around ₹17.50 ($0.21) per kilogram in APMC markets, are sold to consumers for ₹40 to ₹50 ($0.49 to $0.61) per kilogram, marking a 125% price hike.
Farmers, dedicating 90 to 180 days to cultivate crops like potatoes and lemons, typically earn ₹8 to ₹15 ($0.10 to $0.18) per kilogram at APMC markets. However, traders sell these products at ₹30 to ₹40 ($0.37 to $0.49) per kilogram within hours, securing substantial profits. In Ahmedabad, tomatoes are bought for ₹1,200 to ₹2,500 ($14.70 to $30.61) per quintal ( $0.23 per kilogram in wholesale) and sold at retail for ₹50 to ₹60 (approximately $0.61 to $0.73) per kilogram, with prices in some areas climbing to ₹80 (about $0.98) per kilogram.
An analysis from Jamalpur, Ahmedabad's agricultural market, reveals a significant disparity between wholesale and retail vegetable prices, indicating traders are obtaining disproportionate profits.
Source: GujaratSamachar