Description
The nature of product - Vegetables being perishable in nature cannot be stored for a long time. Therefore, there has to be a constant supply of vegetables to meet its demand
SUPPLY OF FRESH
VEGETABLES
STUDY PURPOSE
PRIMARY DATA SUPPLY &
DEMAND
WHY TO STUDY SECONDARY DATA
WHAT TO STUDY
Study
Purpose
What we are Studying
What we are studying
Supply chain in the vegetable market
Factors affecting supply of vegetables
Volume of vegetables sold by the seller
Study
Purpose
Why we are Studying
Why we are studying
The market for fresh vegetables is a short
term market
Very high demand for fresh vegetables, so
the quantity supplied is very soon
consumed by the people
Why we are studying
The nature of product - Vegetables being
perishable in nature cannot be stored for a long
time. Therefore, there has to be a constant
supply of vegetables to meet its demand
Concepts
Used
Concepts used in Presentation
Law of supply
Other things remaining same, more of a
commodity is supplied at a higher price &
less of it is supplied at a lower price.
Movement along supply curve
ncrease in price causes an increase in quantity
Change in quantity supplied due to
change in its own price
Movement along supply curve
Quantity
Price
P
0
Q
0
P
1
Q
1
Increase in
Price
causes
increase in
quantity
supplied
Movement along supply curve
Quantity
Price
P
0
Q
0
P
1
Q
1
Decrease in
Price
causes
decrease in
quantity
supplied
Methodology
Methodology used in
Presentation
Vegetable types
Regular demand - Onions, Potatoes,
Tomato, Green Chillies
Seasonal demand - Brinjal, Cauliflower,
Bitter gourd
Data collection
Primary data
We went to Noida’s local vegetable market
and then talked to 8-10 sellers to collect data
and ask question related to price, supply of
these vegetables, factors affecting their price.
Data collection
Secondary data
Data was also collected from internet, and was
used to analyze and calculate various statistics
of vegetable supply and demand.
We have also taken information and concepts
from our course.
Key findings
In vegetable production, India is next only to
China with an annual production of 87.53
million ton from 5.86 million hectares having a
share of 14.4% to the world production. But
there is most of unorganized market. These
market are mostly supply driven
Wholesale
market is a
vital link in
vegetable
supply chain.
Both the
traditional
and
organized
retailers are
dependent
on wholesale
market with
different
propositions.
Market for
vegetables is
not as short
as cut flower
market as
the
vegetables
have a
longer life
and are less
perishable as
compared to
the cut
flower
market.
The market
for
vegetables is
rather a
short period
market
Increased
supply brings
vegetable
prices down.
Findings..(contd.)
The time
taken for
these
vegetables to
grow is longer,
which
sometimes
delays their
supply. It
results in
prices
remaining on
the higher
side,
Vegetables like
Green chilies,
coriander, mint
and spinach,
which can be
easily grown in
kitchen gardens
as well, are
available at
very affordable
prices. Whereas
vegetables
which cannot
be grown in the
kitchen
gardens, can
get very
expensive when
their supplies is
less.
Recent
examples are
onion and
tomato price
increase
considerably
when it’s not
their season.
When selling
vegetables,
the vegetables
have to reach
the users at
the minimum
possible time.
The food
mileage of
vegetables
causes
considerable
impact on the
vegetable due
to its
perishable
nature.
Factors affecting supply of vegetables..
Climate
factors:
temperature
and rainfall
have a great
impact on the
production of
any crop.
Similarly
production of
vegetables is
also effected
by any
significant
change in the
amount and
pattern of the
climate.
Transportation
cost: Some
vegetables are
getting costlier
because of the
increased
transportation
cost. Though it
is bought at
the farm at
cheaper rate,
the increased
price of petrol
and diesel are
also adding to
the costs in the
retail market.
Metro cities
will face the
heat more as
most of the
supply to Delhi
comes from
places at least
50 km away
from the city,
hence the
transportation
cost is likely to
be added in
the prices of
vegetables,
said a
commission
agent at
Market Yard.
Seasonal price
changes
Demographic
and lifestyle
factors
Bigger
occasions and
events:
demand for
vegetables
increases by a
huge
magnitude
during the
months when
there are
marriages
Other factors..
After conducting this
survey and making this
project we have learnt that
all the concepts that we
have studied in the class
are actually applicable in
the real world. And that
too in the most
unorganized market system
of our country.
Demand and Supply are
the two forces of the
market that do not require
any monitoring from
outside to act in the
market. They reach the
equilibrium point on their
own. Similar situation can
be implied for the supply
for any product.
How managers can use
economic theory to make
predictions about the
effect of exogenous events
upon prices- what to
expect about price &
quantity in specific markets
when certain variables
change or are expected to
change.
Learning outcomes..
References...
The Primary data was collected from the local wholesale vegetable market (mandi), from where the
cart vendors and retailers get their supply of fresh vegetables.
Some information was taken from www.google.com
Concepts and factors from:
Managerial Economics, Karam Pal, Surender Kumar.
Managerial Economics, Indian edition by Mark Hirschey.
This slide is
intentionally
left blank …
Prepared by…
Devendran S.P – PGFA1114
Gaurav Khatri – PGFA1117
Pushpam Shree – PGFA1135
Siddharth Tripathi – PGFA1147
Timsi Luthra – PGFA1154
Vandana Madhuri Singh – PGFA1155
doc_542363596.ppt
The nature of product - Vegetables being perishable in nature cannot be stored for a long time. Therefore, there has to be a constant supply of vegetables to meet its demand
SUPPLY OF FRESH
VEGETABLES
STUDY PURPOSE
PRIMARY DATA SUPPLY &
DEMAND
WHY TO STUDY SECONDARY DATA
WHAT TO STUDY
Study
Purpose
What we are Studying
What we are studying
Supply chain in the vegetable market
Factors affecting supply of vegetables
Volume of vegetables sold by the seller
Study
Purpose
Why we are Studying
Why we are studying
The market for fresh vegetables is a short
term market
Very high demand for fresh vegetables, so
the quantity supplied is very soon
consumed by the people
Why we are studying
The nature of product - Vegetables being
perishable in nature cannot be stored for a long
time. Therefore, there has to be a constant
supply of vegetables to meet its demand
Concepts
Used
Concepts used in Presentation
Law of supply
Other things remaining same, more of a
commodity is supplied at a higher price &
less of it is supplied at a lower price.
Movement along supply curve
ncrease in price causes an increase in quantity
Change in quantity supplied due to
change in its own price
Movement along supply curve
Quantity
Price
P
0
Q
0
P
1
Q
1
Increase in
Price
causes
increase in
quantity
supplied
Movement along supply curve
Quantity
Price
P
0
Q
0
P
1
Q
1
Decrease in
Price
causes
decrease in
quantity
supplied
Methodology
Methodology used in
Presentation
Vegetable types
Regular demand - Onions, Potatoes,
Tomato, Green Chillies
Seasonal demand - Brinjal, Cauliflower,
Bitter gourd
Data collection
Primary data
We went to Noida’s local vegetable market
and then talked to 8-10 sellers to collect data
and ask question related to price, supply of
these vegetables, factors affecting their price.
Data collection
Secondary data
Data was also collected from internet, and was
used to analyze and calculate various statistics
of vegetable supply and demand.
We have also taken information and concepts
from our course.
Key findings
In vegetable production, India is next only to
China with an annual production of 87.53
million ton from 5.86 million hectares having a
share of 14.4% to the world production. But
there is most of unorganized market. These
market are mostly supply driven
Wholesale
market is a
vital link in
vegetable
supply chain.
Both the
traditional
and
organized
retailers are
dependent
on wholesale
market with
different
propositions.
Market for
vegetables is
not as short
as cut flower
market as
the
vegetables
have a
longer life
and are less
perishable as
compared to
the cut
flower
market.
The market
for
vegetables is
rather a
short period
market
Increased
supply brings
vegetable
prices down.
Findings..(contd.)
The time
taken for
these
vegetables to
grow is longer,
which
sometimes
delays their
supply. It
results in
prices
remaining on
the higher
side,
Vegetables like
Green chilies,
coriander, mint
and spinach,
which can be
easily grown in
kitchen gardens
as well, are
available at
very affordable
prices. Whereas
vegetables
which cannot
be grown in the
kitchen
gardens, can
get very
expensive when
their supplies is
less.
Recent
examples are
onion and
tomato price
increase
considerably
when it’s not
their season.
When selling
vegetables,
the vegetables
have to reach
the users at
the minimum
possible time.
The food
mileage of
vegetables
causes
considerable
impact on the
vegetable due
to its
perishable
nature.
Factors affecting supply of vegetables..
Climate
factors:
temperature
and rainfall
have a great
impact on the
production of
any crop.
Similarly
production of
vegetables is
also effected
by any
significant
change in the
amount and
pattern of the
climate.
Transportation
cost: Some
vegetables are
getting costlier
because of the
increased
transportation
cost. Though it
is bought at
the farm at
cheaper rate,
the increased
price of petrol
and diesel are
also adding to
the costs in the
retail market.
Metro cities
will face the
heat more as
most of the
supply to Delhi
comes from
places at least
50 km away
from the city,
hence the
transportation
cost is likely to
be added in
the prices of
vegetables,
said a
commission
agent at
Market Yard.
Seasonal price
changes
Demographic
and lifestyle
factors
Bigger
occasions and
events:
demand for
vegetables
increases by a
huge
magnitude
during the
months when
there are
marriages
Other factors..
After conducting this
survey and making this
project we have learnt that
all the concepts that we
have studied in the class
are actually applicable in
the real world. And that
too in the most
unorganized market system
of our country.
Demand and Supply are
the two forces of the
market that do not require
any monitoring from
outside to act in the
market. They reach the
equilibrium point on their
own. Similar situation can
be implied for the supply
for any product.
How managers can use
economic theory to make
predictions about the
effect of exogenous events
upon prices- what to
expect about price &
quantity in specific markets
when certain variables
change or are expected to
change.
Learning outcomes..
References...
The Primary data was collected from the local wholesale vegetable market (mandi), from where the
cart vendors and retailers get their supply of fresh vegetables.
Some information was taken from www.google.com
Concepts and factors from:
Managerial Economics, Karam Pal, Surender Kumar.
Managerial Economics, Indian edition by Mark Hirschey.
This slide is
intentionally
left blank …
Prepared by…
Devendran S.P – PGFA1114
Gaurav Khatri – PGFA1117
Pushpam Shree – PGFA1135
Siddharth Tripathi – PGFA1147
Timsi Luthra – PGFA1154
Vandana Madhuri Singh – PGFA1155
doc_542363596.ppt