Power Point Presentation on the Topic

8/3/2019 Power Point Presentation on the Topic

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Vegetables and other agricultural products are

Inelastic in demand. So if farmers experience is

excess in production of vegetables, They will supply

more to the market.Over there supply will probably exceed demand and

as agricultural goods and perishable they'll be forced

to sell at well below market prices. In the case of

lower production, the opposite will happen


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Indias DAILY turnover in vegetables and fruits is

about Rs. 275 crores (US$ 59 million). To put some

perspective, that is 3 times the average daily turnover

of Tata Consultancy Services (one of Indias largestand oldest corporations)! Now that I have caught

your attention, the typical wastage per day, is

around Rs. 130 crores (US$ 27 million). This is

roughly the market capitalization of Cognizant (CTS)today.


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Rs. 10 crores (US$ 2.1million) of increase inrevenue

That is 10 times theturnover of all of RelianceFresh stores put together!Incidentally, RelianceFresh doesnt make asingle rupee profit from its

fresh vegetables sales!(Source: Their ownbalance sheet and financialstatements)


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Typically vegetables costhigher in the morning whenthey are fresh, and drop invalue by evening. The gradeof the item also decideswhether there is a premiuma broken, old, local carrot ispriced differently than afresh, bright, orange , carrot!Price also varies with volumeif you buy 5 kg instead of

just kg the same personwould offer you a lesser rate.


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Farmer is the one

who take it to nearest

mandi (local

market), where theagent comes up

with a rate based on

market trends.


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Consumers may place value on the increased variety of foods

available as well as on the convenience of many of these

foods.

To remove the value of quality improvements from price

comparisons, the price of the improved product would have to

be adjusted downward by the value consumers place on the

quality of the improvement.

Tracking changes in the prices of many different foods is an

alternative to examining price indices. Our approach is to lookat price trends for foods that have not undergone substantial

quality change. Foods considered for selection must have been

commonly consumed in the 1980s


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Food attributes change over time, making pricecomparisons at different times difficult to interpret.

Fresh fruits and vegetables that have undergonesubstantial quality change account for a growing

share of produce sold by retailers.Many consumers value additional fresh fruit and

vegetable choices in winter months. Offeringconsumers ever-larger benefits above what they are

willing to pay should induce them to add to thequantity of fresh fruits and vegetables in their diets.


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Power Point Presentation on the Topic