Rising carrot prices haunt consumers already hit by VAT!

On Tuesday (January 16) stocks of carrot harvests in Sri Lanka reached a high price of Rs. 2000 per kilo. Consumer associations and farmer organizations cited the reduction in supply and heavy rainfall as main causes for the spike in vegetable prices. The picture shows vegetables, including carrots, being sold at the Pettah Market
(Pics by Waruna Wanniarachi) 

• Farmer representatives cite the heavy rainfall and the decrease in the harvest as the reasons for the increase in the 
  price of carrots
• Consumer associations and farmer organizations blamed the reduction in supply and heavy rainfall as main causes for the spike in vegetable prices

On Tuesday (January 16), stocks of carrot harvests in Sri Lanka indeed made history. Priced at Rs. 2000 a kilo, the price of carrots experienced an unprecedented surge owing to various reasons. Consumer associations and farmer organizations blamed the reduction in supply and heavy rainfall as main causes for the spike in vegetable prices.
The price of carrots reached Rs.2000 at Pettah Market Yesterday (16th) “We don’t think that the prices of carrots and other vegetables will decrease! We came to buy other vegetables too, but we had to change our minds after seeing the prices,” said M.G Hiru Kavindya, a customer who visited the Pettah Market to buy vegetables. “Goods are in less numbers. But still some people tend to make purchases. We are making losses. Our daily selling quantity is about 20 kg,” said a seller who was trying to sell his stock of vegetables at Pettah Market.               
At Mahaweli B Zone some vegetables such as green chilies and pumpkin are stocked and sellers cannot sell their goods because security personnel are not allowing the sellers to enter the premises. Therefore the crops of about 150 families are left to rot,” said by Asela Sampath, President of National Consumers Front. He said that the price of carrots has risen to Rs.2000 per 1kg because supply has decreased in relation to public the demand. The National Consumers Front has demanded that the people launch a strike against the hike in vegetables prices for a period of one week. 

“The 225 members in parliament are not aware of this problem associated with vegetable for they have no difficulties in feeding themselves,” Sampath added.
 He went on to explain that the Department of Agriculture and the Consumer Affairs Authority should take more responsibility regarding the increase in the price of carrots. He was critical in saying that the reason for the price increase in carrots should be solved. As a result he presented solutions as to how to grow carrots in other regions such as Jaffna to resolve this issue. He pointed out that the state departments are irresponsible and they should have plans to grow carrots in other areas to prevent the shortage of vegetables. He exclaimed that there is no point in blaming it on the weather. He questioned whether the government authorities who are responsible are aware of these developments and added why they are not taking any measures to prevent the increase in price of such goods. 
The Farmers’ Union National Organizer Namal Karunaratne provided reasons for the increase in the price of carrots. He said that heavy rainfall was a major issue for the decrease in the harvest. He added that as a result the selling prices of vegetables have risen. He mentioned that there were some crops producing a good harvest, but due to the inclement weather they were damaged in the absence of fundamental steps being taken when dealing with the heavy rainfall.  Therefore a large scarcity of vegetables exists in the market. 

“Normally 3-4 carrots would make up a 1kg, but now at least 15 carrots have to be weighed to make a 1kg,” said Karunaratne. He added “Earlier 1kg of carrots was sold at Rs.300; which price has increased to 1000. The earlier price of Rs.300 was profitable for both the farmers and the customers”. He went on reasoning and added that the problems associated with vegetables were connected to of the lack of tools used in farming. The excessive VAT imposed on the equipment used in farming makes the farmers move away from their careers. It also demotivates farmers as well as those who are waiting to enter the agriculture industry. The rain combined with the high cost and the presence of VAT shrink the land available for farming. Also, farmers don’t generate profits due to the higher rates incurred in making purchases. The farmers receive Rs.800-900 per kilo by growing carrots.
Karunaratne blamed the government for not intervening in the matter. He admitted that the government should have fixed prices for the vegetables. If the government intervenes there will be no price fluctuations and the price of vegetables will be stable; being affordable for people and the farmers. According to him there is a sudden price drop in drumsticks and mangoes to an increase in their supply. 
People are being reluctant to consume vegetables due to high prices. Moreover, he confirmed due to the zero government intervention in the matter the number of people affected by the vegetable price hike will increase.