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1. Executive summery

Vegetables are an essential commodity for all social and economic class of society.There are

very high demands for the vegetables.Sri Lanka households, low-income, high-income and

middle households tend to consume below the recommended amounts vegetables. . It is 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

Consumers buy the vegetable in high price at Pola market. The determination factor affects to

increase and decrease demand of vegetables. Pola consumers care the product price then consider

other factors. The determination are price of vegetables demand, price of fish, meat, egg, price

of bread, wheat flour, food habits/cultural facture, interest/ believes and weather condition,

difference of family members, perishable nature and durability and freshness and clearness. The

supply factors affect availability, weather condition, transport cost and wastage. Suppliers reduce

and increase their selling price for their cost in this market.

VegeMarts consumer has a leisure time for the marketing activities there are husband and wife

are working.it is having rush schedules with their life style/ occupation / traffic jams/ kids

education & extra curricular activities, tendency for eating from restaurants/ outside places Vs.

cooking at home, less time to clean/ prepare vegetables for cooking, consumers is ready to pay

even a high price for cleaned and fresh vegetables if those are available at easily accessible

outlets. The thing about Sri Lanka is that even though their produce is fresher than fresh and

target is a high income consumer.

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2. Introduction

There is always high demand for vegetable in Sri Lanka. The assignment describe two different

vegetable markets which in Sri Lanka.Pola and VegeMart are those. pola are usually open in

Sundays and holidays. The pola is reduce the crowed in weekend days. Most of Pola is located

near rural areas.

The demand and supply of vegetable depend on their Pola and VegeMart markets.Vegetable

prices arehanged on seasonal matters. The purchasing not only hanged on seasonal matter but

also in delivery time. Most of consumers’ decision time of buying is very quick because they are

buying these goods continuously.

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3. Methodology

To get the depth knowledge in the vegetable the research is carried out. For the task 1 include

statements are collected from Eravur Abdullah Pola (Sunday fair). In order to collect the

information task 2 from ColomboVegeMart owner of Namal (seller) was interviewed and also 10

numbers of consumer was discussed from different rural and urban areas of Sri Lanka.

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4. Task 01

I selected the Pola (Sunday fair) market.

DEMAND

Global system of vegetables today is very much driven by the demand side. With income

growth, globalization, and urbanization, demands for vegetables products will continue to grow

and shift towards high-value commodities. Demand will increase by in Sri Lanka market. Most

of the demand for vegetables will be driven by people’s food demand.

4.1.1 Determinants of vegetables demand

There are several factors effecting in the vegetables demand.

a) Price of vegetables demand

Many consumers buy vegetable as day to day activity they always consider prices of Vegetables.

In Pola prices are expensive than VegeMart. Even though prices are too high, consumers are not

boycott of buying vegetable. There is negative relation of vegetables price and demand. If Price

increase consumer will buy in less committee but if price decrease they will buy more that time

demand also increase.

b) Price of fish, meat, and egg

The some substitute products for vegetable are fish, egg and meat. We can say that fish and meat

as substitute for vegetable. However vegetables are mandatory for cooking for example we

cannot cook fish without onion, lemon and chilly

There is less substitute product in the market for Vegetables. It may befish, egg and meat.

Vegetables normally cheap price than the meat and fish but some time the vegetable price is high

so that time consumers go more fish and meat. Consumer buy mostly the vegetable product

because it is cheap than fish, egg and meat. However, not all consumers will get used to the new

substitute product immediately.

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There is less complementary product in the market. Example egg and vegetables is some time the

part of complementary product. We never cook Fish and meat curry withoutonion and chilly.

Tasty foods always prepared the joint of vegetable andcomplementary.In this point the

consumers satisfaction fulfill.

c) Price of bread , wheat flour

In our country rice is main food. Next option is bread. Consumers Take bread with vegetables

curry so, they buy the vegetables for the bread, bread and wheat flour.if bread and wheat flour

prices increase consumers buy less vegetables.

d) Food habits and cultural facture

Consumers have different character in their food habits because,Consumer likes more

vegetables. Pola market covers village area that there are different region peoples live. Mainly

hindu people are vegetarian and Muslim consumer likes more meat and fish than the vegetables.

e) Interest and believes

Consumer believes that vegetable givesgood energy and nutrition.From natural vegetable

consumers gets free medicine from these. Most of households believe that vegetable are good for

their childrens.

f) Weather condition

There are considerable uncertainties regarding the impact of climate change on vegetables, there

is a growing consensus that vegetables production globally is likely to be increased by climate

change, with Ploa consumer price increased by the damagefood insecurity.Vegetable price is

very high in rainy seasons (December, January and February). Sellerscannot stock the

Vegetables more days so, that situation will increase the price.

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g) Difference of family members

Family members have different characters for foods.Especially children like vegetables food.

Demands are increased by the children.

h) Durability

Consumers can easily purchase vegetable on pola market because this markets always

available on weekends. The rural side consumer are free enough to buy on weekend

there for they can buy.

i) Freshness and clearness

Pola market is low freshness than Vegemart. Consumer likes the clear and fresh vegetables for

food. Consumers are expecting better price and best fresh vegetables. consumers consider fresh

than prices

SUPPLY

Supply explains about the sellers of vegetables. Some suppliers are producing vegetable in

theirowngarden but more sellers selling vegetable to business market and consumer market.

Supply constraints in view of the high vegetable demand, rising prices, and emerging challenges,

the Sri Lankan production response has been fast supply for the market. The overall productivity

growth in vegetable is fast demand.

4.1.2 Determination of supply

a) Availability

Pole market has more suppliers in the market.There are selling all vegetables items in better

price. Resellers buy vegetables for Pola demand from most Damdulla and Nuwaraliya.

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b) Wastage

Sri Lankan post harvesting management is 40% harvest wastage and 60% is sold by seller. Their

wastage percentage is high so seller is going down so the suppliers increase the price.

c) Transportation costs

Some vegetables products that must be transported for long distances, in small quantities, or are

difficult to handle raise costs. Transport cost will increase supplier increases price because some

vegetables not produced in different place. Sri Lankan fuel price is going up so the supplier

increases the price.

d) Weather condition or seasonal pattern

ComprehensiveSri Lankan climate change regime must be negotiated. Most of time climate

change is favor to supplier. In rainy season vegetable product is low. Therefor in this stage

vegetable prices are very high than other season. Rainy or winter any season consumers must

buy. Sellers decide the prices of vegetable because waste is very high.

4.2.1 Elasticity demand

a) Price elasticity of demand

Vegetables price can also be elasticity of demand where relatively not equal changes occur both

in price and vegetables quantity.

Vegetables price inelasticity of demand refers to responsiveness in the vegetables demanded for

vegetables to changes in the given vegetables’ price. It indicates whether the demand curve

slopes steeply or whether it lies flat. It is common knowledge that when price increases less will

be bought and the times some different type of vegetables in elasticity because consumer will

shift for other vegetables.

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b) Income elasticity of demand

If the consumer income is increasingthey will buy more vegetables for their food but not all. It is

well-known.That income inelasticity demands of vegetables. This raises the question of rapidly

price and income inelasticity of demand for vegetables products in large developing and

emerging economies are moving toward the low elasticity seen in Sri Lanka Pola market.

c) Cross elasticity of demand

There is no directly substitute but indirectly effect price of rice, fish, meat, soya meat and

egg.The vegetable price elasticity soya meat, meat and fish price increase consumer will buy

more vegetablesbut,Those price increase will buy low percentage of vegetableso, more

substitutes and complementary affects Pola market’s vegetables demand.

5. Task 02

5.1 VegeMart opportunity

Generally Middle Classurban areas peoples have less leisure time for the marketing majority

activities. Husband and wife are working. The consumer have little time cook and other

marketing activities.

VegeMart is special for the Vegetables market. It is opening long times for their target

consumers. The thing about Sri Lanka is that even though their produce is fresher than fresh, but

because of target is a high income consumer.

Consumers always like best satisfy for their purchasing. Pola do not good satisfy for urban

consumers but the VegeMart is selling fresh vegetables in important areas so consumers will

purchase the vegetablesVegeMart. The way some types of food are perceived significantly

affects procurement behavior by households. For example, many Sri Lankan women feel rightly

or wrongly that vegetables has high healthy and freshly at VegeMarts

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a) Life style/ occupation

Husband and wife are working. Sri Lankan 60% employees are working at privet sectors. They

don’t have more time for purchase so they will buy the vegetables in special VageMart.

b) Less time

VegeMart is having leisure time to clean or prepare for cooking activities so that consumer will

buy the product for their day to day activities.

c) Traffic jams

Urban area has more traffic jams. It is affecting the purchasing activities so consumer will select

the VegeMart.

d) Eating from restaurants/ outside places Vs. cooking at home

Urban areas have a more restaurants and outside place for some eating activities. It can be a good

opportunity for VegeMart.

e) High income

Urban middle class consumers have high income. They likes best satisfy for their cost. It may be

a good opportunity for VegeMart.

f) Cleaned and fresh vegetables

One very effective way of enhancing urban consumers' food security is improving the efficiency

of all activities that bring food and distribute it within urban areas health, handling, sorting, and

consumer motivational and demographic characteristics influencing their choices.

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6. Conclusion

Sri Lanka's vegetable production has been increased considerably in the past few months

enhancing its supply to major markets and economic centers in the island resulting in a

surplus and drop in prices, farmers and trader associations said. Officials of the Joint

Farmers' Association pointed out that the low country vegetables are available in plenty and

farmers have received a bountiful harvest as a result of favorable weather conditions, the

planting of quality seeds, government's intervention in home gardening projects, fertilizer

subsidy and the increase in production in North East areas.

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7. Recommendations

We want to increase the profit fromvegetables.Wedevelop the Pola marketselling industry and

sell the better price because consumer knowledge is health food after than the price. The

production of vegetables helps local economic development and increase the GDP.

The local vegetablesmarket has been growing in recent years with strong Government support,

including mandated high farm gate price. However, some vegetablesare out of reach of the

affluent consumers. We have to reduce the cost of vegetables producing farm production is

higher and their products indirect substitutes.

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8. References

www.ifpri.org/pubs/confpapers/20080322jvbchinaforum

http://www.oerafrica.org/ftpfolder/Agshare/Marketing%20and%20Price%20Analysis/de

mand_for agricultural_commodities.html

http://Www.ifad.org/operations/food/ceb.html

http://Www.dailynews.lk/2012/05/05/news31.asp\