Market vendors in Suva

Concerns continue to be raised on the exorbitant prices of vegetables after the COVID-19 lockdown and Tropical Cyclone Harold however market vendors say that they do not have any choice as they are buying the produce from farmers or third parties at higher prices compared to the past.

Some market vendors in Suva have told Fiji village that the prices for vegetables has nearly doubled.

A vendor highlighted that as early as last month they used to get a sack of eggplants from Valley Road for about $30 but now it is costing close to $60. Another vendor also says the price of English Cabbage has significantly increased as they are now getting one kg of cabbage for about $40.

She also highlighted that last month the vendors used to get 12 bundles of long bean for about $25 and now it is costing them close to $50.

A small heap of eggplants is now being sold to consumers for $5, a bundle of long bean is $5, a bundle of dalo is being sold for $35, a quarter of a pumpkin is $4 while a heap of cassava is $7.

The vendor says people complain to them that they are increasing vegetable prices but she says if they do not increase their price they will not be able to make profits.

The Consumer Council of Fiji has also said that it is seriously concerned with the exorbitant local vegetable prices in municipal markets around the country.

Following the complaints, a survey was conducted last week that found prices for produce had increased enormously.

The Council has analyzed the price of some local produce sold during the COVID-19 pandemic crisis and found that the price of English Cabbage has gone up by 100%, dalo price is up by 250%, cassava price is up by 54%, long bean price is up by 44%, jackfruit price is up by 25%, bean price is up by 100%, eggplant price is up by 150% and pumpkin is up by 25%.

The council says it is also concerning to see that whilst the prices have increased, the quantity has subsequently declined. For example, a plate of three, locally grown eggplants are now sold for $3, which means $1 for each eggplant. Previously, for the same price, a consumer could have purchased double the quantity of what is sold nowadays.

Meanwhile, Minister for Agriculture Doctor Mahendra Reddy had earlier said the ministry knows that there is a shortage of vegetable supply in the last 4 weeks and the supply issue will remain going forward as heavy rain and flooding will affect the flowering of vegetables.

1.Explain the linkages between the article and the relevant microeconomic theory. Explain the content of the article with your understanding of the theory.