The Hindu : Tamil Nadu News : Higher prices mean lower sales

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Tuesday, May 13, 2008
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Tamil Nadu

Tamil Nadu

Higher prices mean lower sales

R. Sujatha

If they are to remain in business now, vegetable vendors need to be competitive

With prices shooting up, selling has
become a
difficult business

Photo: S. Thanthoni

Balancing act Koteeswari at her stall in Mylapore.

Selling vegetables is not an easy job in a time of rising prices, as many vendors are finding out. With prices shooting up, it’s difficult selling even to their regular customers. To remain in business, vendors have to be competitive.

Vegetable vendors, both those who hawk door-to-door or sell them at the street corners, say their business takes a hit when they try to pass on the hike in prices to the customer.

N. Mohan began selling vegetables on the streets 22 years ago. His investment on a good day is around Rs. 700. “But the quantity of vegetables that can be bought with that sum has come down by half now,” he says.

However, business has not been affected by the retail chains, he says. “Reliance [Fresh] has not made a dent in my business because I sell vegetables that the shop does not stock.”

Nanda and Koteeswari set up shop in a tricycle on South Mada Street in Mylapore 14 years ago.

Asked about the steep hike in prices, Ms. Koteeswari says she buys vegetables that are cheap, so customers are not put off by the higher prices. She says she has to invest more now to make the same amount of money she did earlier. “Earlier I used to invest Rs. 1,500 in buying vegetables; now it is Rs. 2,000.” On Saturday she invested Rs. 2,300. “I owe the wholesale merchant in T. Nagar Rs. 300.”

Most vendors set a profit margin of one or two rupees for every kg they sell.

Kamala, who has been selling greens in T. Nagar for 30 years, hiked the price of a bunch of spinach to Rs. 6 and customers stopped buying. When she reduced the price to Rs. 4 the customers returned, she says. Last Tuesday, she said greens worth Rs. 50 went waste as there were no takers.

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