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Price Flexibility and Seasonal Variations of Major Vegetabless in Sindh Pakistan

The study examines price flexibility and seasonal variations of major vegetables in Sindh, Pakistan, highlighting the elastic demand for potatoes, tomatoes, and onions, and the impact of erratic price fluctuations due to supply and demand dynamics. It suggests that government policies should focus on increasing market supply during non-harvesting seasons to stabilize prices for both farmers and consumers. The research utilizes data from Hyderabad and emphasizes the importance of understanding seasonal price patterns to improve agricultural economics in the region.

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0% found this document useful (0 votes)
24 views10 pages

Price Flexibility and Seasonal Variations of Major Vegetabless in Sindh Pakistan

The study examines price flexibility and seasonal variations of major vegetables in Sindh, Pakistan, highlighting the elastic demand for potatoes, tomatoes, and onions, and the impact of erratic price fluctuations due to supply and demand dynamics. It suggests that government policies should focus on increasing market supply during non-harvesting seasons to stabilize prices for both farmers and consumers. The research utilizes data from Hyderabad and emphasizes the importance of understanding seasonal price patterns to improve agricultural economics in the region.

Uploaded by

Gul Rehman Gul
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Food Science and Quality Management www.iiste.

org
ISSN 2224-6088 (Paper) ISSN 2225-0557 (Online)
Vol.47, 2016

Price Flexibility and Seasonal Variations of Major Vegetabless in


Sindh Pakistan
Sanaullah Noonari*1 Dr. Hakimzadi Wagan 1 Irfana Noor Memon 1
3
Muhammad Ismail Kumbhar Dr. Raiz Ali Buriro3
1. Assistant Professor, Department of Agricultural Economics, Faculty of Agricultural Social Sciences, Sindh
Agriculture University, Tandojam Pakistan
2. Assistant Professor, Department of Agricultural Education, Extension, Faculty of Agricultural Social
Sciences, Sindh Agriculture University, Tandojam Pakistan
3. Assistant Professor, Department of Statistics, Faculty of Agricultural Social Sciences, Sindh Agriculture
University, Tandojam Pakistan

Abstract
Vegetable cultivation is the most important strategy to reduce poverty as well as to overcome food security
problems due to small landholdings and sufficient labour force availability in the rural areas of Pakistan. The
results showed that the demand was almost elastic for potato, tomato and onions while there was flexible price
trend appeared in the production. Prices on agricultural products are mostly determined by supply and demand.
The results of the study showed that erratic price fluctuations both cyclical and seasonal are observed every year.
The effect of over-all economic fluctuations are overlaid on a pattern of good and bad harvests, so that an
analysis of the effect of a fall in demand on price and output must take account of variations in crop size due to
solely the weather. Price fluctuation of these four vegetables is its seasonal character. In the post-harvest period
the prices are considerably at lower side whereas in the lean season these are quite high. Thus, from the farmers’
point of view they are denied of reasonable prices for their produce during post-harvest period on the consumer’s
side they are to pay high prices during lean season. Hence, while making a policy towards prices of the
vegetables Government should increase the supply in the market by import that commodity from other markets
or neighboring countries in non-harvesting seasons as well as the area and production may also increase by using
new technology, high yielding seed varieties.
Keywords: Vegetable, Prices, flexibility, seasonal variations, commodity, Sindh

1. Introduction
In Pakistan, more than 63 varieties of vegetables distributed in 44 genera, are grown on large scale and
consumed as summer and winter vegetables comprising mainly potatoes, gourds, tomatoes, cucumbers,
ladyfingers, turnips, cabbages, brinjal, cauliflowers etc. These vegetables are popular for their freshness, taste
and nutritive value. Mostly, vegetable cultivation is concerted around the populous cities due to no difficulty of
input and output market and accessibility of unskilled labour force for performing various farm practices, such as
weeding, hoeing etc. Pakistan includes of five provinces namely Sindh, Punjab, Baluchistan, Khyber
Pakhtunkhwa and Gilgit-Baltistan. Out of five provinces, Punjab province is not only the most densely inhabited
but it has also the productive lands appropriate for cultivation of big varieties of fruits, crops and vegetables. It
has a geographical area of 79.61 million acres and takes up 30.96 million acres of cultivated area. It has a total
cropped area of 57.34 million acres, making 71.53 percent of the total cropped area of Pakistan. As far as
vegetable cultivation is fretful, area under vegetable cultivation is 252000 hectares (GOP, 2013).
After growing at a steady rate in the last decade, Pakistan’s vegetable exports have suffered volumetric
year-on-year decrease of 40.4% in 2011-12. The drop in vegetable exports is a consequence of natural disasters,
unfair profiteering by middlemen and a change in supply and demand dynamics in the foreign markets. The
significant drop in vegetable exports is mainly because the onion crop was destroyed by floods. Pakistan fetched
$180.2 million by exporting edible vegetables in fiscal 2011-12. Their exports increased at 39% annually
between 2007 and 2011, as per the World Trade Organization (WTO). Notably, the rise in the country’s
vegetable exports between 2010 and 2011 alone was a staggering 122%. Export of vegetables from Pakistan.
Vegetables offer good value in terms of nutrients and therefore, less developed countries, especially South Asian
States have vegetable dietary habits. Hence these poor countries grow and consume much more vegetables for
their main food requirements. Pakistan has greater opportunities, being a centre for vegetable production and can
export fresh and canned vegetables in most of the Asian countries to earn foreign exchange. At present, mostly
the growers depends on imported seeds, but it is true that many jobs farm of labourers, could be created by
growing vegetables for seed production, seed trade and export business may also increase, which reduce annual
import costs on vegetable seeds. Farmers prefer to grow vegetables due to short plantation duration and it is
considered as the low delta crop. The vegetables can play great role in boosting the economy of the country, due
to the fact that this sector has not been explored to earn more income through exports to other countries (EPBP,
2013).

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Pakistan has a potential to export these products with trade liberalization under the system of World
Trade Organization. Production of vegetables is beneficial; nonetheless, it labor demanding. Thus, it provides
income support especially to small farmers and employment opportunity for landless laborers in rural areas.
Production functions of onion, tomato and chilies are quite complex since different inputs with different
combinations are used. The differences across farms in use of various factors of production and various
combinations of factors of production cause changes in crop yields. The input use level and combinations are
different across farms and regions resulting in different yields. Furthermore, there is a wide gap in yields of
experimental stations and farmer fields indicating the suboptimal use of inputs. Vegetables produced in
different zones by using different production technologies during different seasons are traded across regional
markets of Pakistan in order to meet consumer demand across the country. Eighty percent of vegetable
production in Pakistan is marketable (Mukhtar, 2004).
In agriculture the demand for any crop does not play important role in determining the price. The
demand for any crop remains inelastic while supply is highly elastic. That is why high variations in the supply of
the Cropwell create variability in its price. The price flexibility analysis reveals that the relation of price ad
production of gram and mung was positive it may be because these are that major pulses of their respective
season also having the high demand. While of masoor and mash it was negative. The supply (Production) of
gram increases its current year’s price was also increases. A 10 percent increase in the production of gram
increase the price of gram the 9.8 percent in the same production season. Hence price response elasticity in case
of gram was elastic closed to unitary elastic. In case of own price elasticity of masoor is highly elastic. A 10
percent increase in the in the production of masoor decrease will cause a decline of 17.7 percent in its price. In
case of mung the own price elasticity is highly elastic because due to 10 percent increase in the production in
mung that will bring increase in its price by 12.4 percent. Price response elasticity in case of mash is inelastic
( Rani et al. 2012).

2. Objectives
1. To estimate the price flexibility of different vegetables.
2. To observe the part of various factors towards the price flexibility at different productivity levels.
3. To determine the simple average approach seasonality of different vegetables.
4. To suggest some policy measures based on the results of the study.

3. Methodology
Primary purpose of this chapter is to explain various tools and techniques in the selection of sample, collection,
analysis and interpretation of data relating to research. Intend of this study was to investigate the existing price
flexibility and seasonal variations in prices of vegetables in District Hyderabad Sindh. Planned strategy was used
to study the area, type and number of respondents without which it would be an ineffective effort. Therefore, it is
essential to define variables included in the research to make it more scientific and objective.

3.1.Selection of the Research Study


To measure the price flexibility and the seasonal variation in prices of vegetables, the analysis covers major city
of Hyderabad Sindh. The area was selected due to their major contribution in the economy of Sindh. Hyderabad
city has a larger contribution in the production of Onion, Potato and Tomato has the biggest markets in the Sindh
province.

3.2.Data Collection
For this study, secondary data of monthly prices and quantity data was collected from market of onion, tomato
and potato of last two years (2012 and 2013). Data were collected from various sources including, vegetable
market committee Hyderabad, Government of Sindh and vegetable wholesale market Hyderabad Sindh.

3.3.Theoretical Framework
This section is devoted to the theoretical description of the different price flexibility approaches and seasonality
methods with special reference.

3.4.Price Flexibility
Although the relationships among estimated demand and supply coefficients have been examined at length, the
link between the direct price flexibility and elasticity of demand has not been discussed explicitly in the literature
although often mentioned in passing; this particular relationship remains a source of confusion. In order to
clarify it, only a little matrix algebra and some economic theory are needed. It is shown here that, under rather
general conditions, the reciprocal of the direct price flexibility (often estimated in econometric work) is the lower
absolute limit of the corresponding direct price elasticity. Price elasticity of demand is concerned with the

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responsiveness of consumers in the quantities they will produce in response to a price change. But the price
forecaster is frequently concerned with the volatility that might be expected in prices as result of a change in the
quantity of product made available for sale. Since elasticity measures the quantity response to a price change, the
inverse of elasticity would measure the responsiveness of price to a quantity change. Price flexibility is the term
used to describe the inverse of the elasticity relationship.
% Change in Q 1
Price flexibility (PF) =1/ =
% Change in P ∈

3.5.Seasonal Variations
Crop prices tend to follow a general season pattern, which is a function of relative changes in supply and demand
as the marketing year progresses. Generally, crop prices set their seasonal low at harvest followed by a post-
harvest rally. Postharvest rallies occur because the supply of the crop is fixed and consumption gradually uses up
that supply, causing prices to rise. Seasonality is a phenomenon that occurs over one production cycle for crops
this is generally twelve months. Seasonal forces are different from cyclical or trend forces. A seasonal is one
special type of cycle. A cycle is a continuous and self-sustaining price pattern which can occur over any length
of time. Although there is some evidence of cycles influencing livestock markets, there is little evidence other
than of a “technical analysis” nature of other cycles affecting crops. Major market shocks (droughts, embargoes,
dramatic policy events, etc.) can cause crop prices to behave in a “contra-seasonal” manner. Consequently, some
analysts separate out years that had a special “condition” and build seasonal that consist only of those years
(Ferris 2008).

3.6.The Simple Average Approach


To calculate a seasonal price indexed based on a simple average calculation; we would simply array the prices
by months for each of the crop years, calculating a two year average price for each month and for the entire
period. Thus using the two year annual average price as a base, we could construct our index by dividing each
two year average monthly price by the overall two year average. The resulting index would be interpreted as the
expected monthly percentage deviation that might be expected from the average price. Thus, an index value of
any for January would suggest that we would normally expect January prices in any vegetable year to be 3
percent higher than the season average price.
In order to glean some estimate how dependable our seasonal index might be, we could construct a
range or “zone” of seasonal instability. This range of instability is calculated in the case of the simple average
index by dividing the price for each month of a marketing year by the annual average price for that year, and
then selecting the high and low values for each month as the limits of the range of seasonal instability.
The simple average approach to measuring price seasonality can be modified to at least partially
compensate for the limitations observed simply by calculating the real price for any given month during a crop
year as a percentage of the season average price for the year. Once the individual monthly percentages have been
calculated, the simple average percentage for each month can be calculated as an index of price seasonality.

4. Results
The production of any agricultural crop/vegetable is subject to the congenial soil structure, climatic conditions,
social organization, availability of resources and favorable marketing condition both in factor and product
markets. The general objective of the study was to identify the price flexibility with the changes in the prices of
potato, onion, tomato and how seasonal can be used to identify the timing of a market’s major turning points and
to predict the magnitude of price changes at the sample farms in District Hyderabad Sindh.

4.1.Production of Vegetables
Table 1: Area and production of different vegetables in Pakistan
Onion Tomato Potato
Particulars Area Production Area Production Area Production
(000) (000) Tonnes (000) (000) Tonnes (000) Hectares (000) Tonnes
Hectares Hectares
Pakistan 147.6 1939.6 52.3 529.6 159.4 3491.7
Sindh 63.2 861.5 14.6 114.8 0.4 3.9
Punjab 44.7 367.9 6.7 87.8 148.1 3339.9
KPK 11.0 181.3 12.6 113.2 8.9 118.2
Baluchistan 28.7 328.9 18.4 213.8 2.0 29.7
Source: Fruit, vegetable and condiments statistics Government of Pakistan (2013)

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4.2.Prices of Vegetables
Table 2: Average monthly wholesale prices of different vegetables prices in Rs. per 100 Kg in Hyderabad
2012-13
Months Unit Year 2012 Year 2013
Potato Onion Tomato Potato Onion Tomato
January 100Kg 1054.00 2939.00 4902.00 2100.00 1700.00 5700.00
February 100Kg 1066.00 1955.00 2625.00 1900.00 2400.00 5100.00
March 100Kg 1098.00 1194.00 2515.00 1800.00 4100.00 4700.00
April 100Kg 1450.00 1094.00 1912.00 1900.00 4800.00 4000.00
May 100Kg 2700.00 1012.00 788.00 1900.00 4500.00 5000.00
June 100Kg 2325.00 877.00 1643.00 2000.50 3600.00 7200.00
July 100Kg 2734.00 1373.00 1643.00 2500.00 3800.00 7700.00
August 100Kg 2996.00 1905.00 3033.00 2100.00 5500.00 7500.00
September 100Kg 2670.00 2435.00 3856.00 2400.00 4800.00 6600.00
October 100Kg 2677.00 3495.00 5585.00 3500.00 4600.00 5900.00
November 100Kg 2370.00 3871.00 5237.00 5700.00 5000.00 5500.00
December 100Kg 1128.00 2687.00 4159.00 3700.00 3700.00 3300.00
Source: Secondary data on price for Hyderabad Wholesale Market

4.3.Price Flexibility of Potato


Table 3: Price elasticity and price flexibility coefficient for potato in Hyderabad 2012
Monthly Average Monthly Average Price Flexibility
Months Price (Rs.per 100 Supplied Quantity Price Coefficient
KG) (Tones) Elasticity
Jan. 950 4588 - -
Feb. 917 4710 -0.76 -1.30
Mar. 1000 3964 -1.74 -0.57
Apr. 983 4025 -0.90 -1.10
May 1700 3740 -0.097 -10.30
Jun 2142 3250 -0.50 -1.98
July 2567 3020 -0.35 -2.80
Aug 3917 2775 -0.15 -6.48
Sept 2725 2930 -0.18 -5.44
Oct 2458 3095 -0.57 -1.73
Nov 2483 3155 1.9 0.52
Dec 1283 3445 -0.19 -5.24
Source: Secondary data on price for Hyderabad market
Table-3 shows the price elasticity and price flexibility coefficient for potato. In the month of February if
there is 4 percent increase in the quantity made available would be associated with a 9.5 percent reduction in
price. There is a lot of variation in the prices of potato due to larger fluctuation in the prices. Price flexibility
coefficient is at his higher level at -10.30 where there is a big difference in the prices of April and May. In the
month of May there is highest price flexibility with a value of 10.30. There is only one point when the prices of
potato are inflexible in the month of November.

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Figure 1: Price elasticity and price flexibility of potato in Hyderabad 2013

Figure-1 explains that in the second month of 2013 there is some price flexibility in the prices of onion
again the same results related to the last year but in the early month of year 2013 the price flexibility shows less
variation. After the month of February the variation is higher. According to the results the price flexibility in the
month of May is -9.7 which is the highest value in the whole year but then suddenly in the month of June the
value of price flexibility is much less.

4.4.Price Flexibility of Onion


Table 4: Price elasticity and price flexibility coefficient for onion in Hyderabad 2012
Monthly Average Monthly Average Price Flexibility
Months Price (Rs.per 100 Supplied Quantity Price Coefficient
KG) (Tones) Elasticity
Jan. 1883 75 - -
Feb. 1733 68 -2.25 -0.44
Mar. 1967 71 -1.80 -0.55
Apr. 2367 58 -0.54 -1.84
May 1858 63 -0.23 -4.16
Jun 1467 72 -3.39 -0.29
July 1550 53 -1.00 -0.99
Aug 2150 39 -1.04 -0.95
Sept 3000 41 -0.51 -1.93
Oct 3292 48 -1.18 -0.84
Nov 5883 60 -0.33 -3.01
Dec 4167 40 0.53 1.85
Source: Secondary data on price for Hyderabad market
Table- 4 shows the price elasticity and price flexibility coefficient for onion. In the early month of the
prices of onion are not much higher but as time passes the prices go higher because of the non-harvesting time of
the onion. The export to different countries brings significant impact on prices in local market. The augmented
supplies tend to keep prices in the domestic market low thereby offering an opportunity for export. Therefore,
onion exports are mainly undertaken during this period, predominantly from Sindh crop.

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Figure 2: Price elasticity and price flexibility of onion in Hyderabad 2013

Figure-2 explains that in the second month of 2013 there is some price flexibility in the prices of onion.
The highest variation is seen in the price of onion is between the month of October and November which is
Rs.3292/100 Kg to Rs.5883/100 Kg because of the non-harvesting season of the onion. The value of price
flexibility coefficient is higher during this time period with a value of -3.01 which means that if 1 percent
change in the quantity supplied is available may cause 3.01 percent change or reduction in the price. The value
of coefficient is lower in the month of June which is the peak time of harvesting. Only in the month of December
the value of coefficient is positive which means the prices are inflexible in that month.

4.5.Price Flexibility of Tomato


Table 5: Price elasticity and price flexibility coefficient for tomato in Hyderabad 2012
Monthly Monthly Average Price Flexibility
Months Average Price Supplied Quantity Price Elasticity Coefficient
(Rs.per 100 Kg) (Tones)
Jan. 1217 75 - -
Feb. 1417 68 -0.56 -1.76
Mar. 1358 71 -1.05 -0.94
Apr. 1774 58 -0.59 -1.67
May 1508 63 -0.57 -1.73
Jun 1433 72 -2.86 -0.34
July 2975 53 -0.24 -4.07
Aug 4683 39 -0.46 -2.17
Sept 4033 41 -0.36 -2.70
Oct 3883 48 -4.59 -0.21
Nov 2933 60 -1.02 -0.97
Dec 4208 40 -0.76 -1.30
Source: Secondary data on price for Hyderabad market
Table-5 shows the price elasticity and price flexibility coefficient for Tomato. In growing season of
tomatoes the prices are less but as the season passed the prices are going higher and higher gradually. From
January to May the prices are slowly increases but in the month of June the prices increased rapidly but in the
whole year highest average price of tomato are seen in the month of August. So as the price is higher in August
the quantity supplied in the market of tomato is less in the whole year. It is observed that prices are lowest during
May when Tomato is supplied from Punjab and highest during August and September when it is supplied from
N.W.F.P. The prices tend to normal when supply starts from Sindh.

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Figure 3: Price elasticity and price flexibility of Tomato in Hyderabad 2013

Figure-3 explains that in the second month of 2013 there is some price flexibility in the prices of tomato.
Price elasticity of demand for tomato for whole year is inelastic which means the price flexibility coefficient in
flexible in the whole year. The interpretation for the price flexibility in the month of February is that if there is 1
percent increase in the quantity made available would be associated with a 1.76 percent reduction in price. The
highest variation in the price flexibility is between the month of July and August. In the month of July the price
flexibility coefficient has the highest value of -4.07 which means if there is 1 percent increase in the quantity
made available than it would cause 4.07 percent reduction in the price. The lowest value is between the month of
June and July where there is less difference between the prices of tomatoes.

4.6.Seasonality of vegetables
Table 6: Simple average seasonal index for potato
Potato Prices 2 year average price 2 year annual
Month 2012 2013 for each month. average price Seasonal Index
Jan. 950 2100 1525 2212 76.25
Feb. 917 1900 1408 2212 70.40
Mar. 1000 1800 1400 2212 70.00
Apr. 983 1900 1441 2212 70.70
May 1700 1900 1800 2212 90.00
Jun 2142 2000 2071 2212 103.55
July 2567 2500 2573 2212 128.65
Aug 3917 2100 2508 2212 125.40
Sept 2725 2400 2562 2212 128.10
Oct 2458 3500 2676 2212 133.80
Nov 2483 5700 4091 2212 204.55
Dec 1283 3700 2491 2212 124.55
Table-6 shows the monthly average price data over the period of 2012 and 2013. The result shows in
the same table. The prices of potato vary in both years which cause the variation in the seasonal index. The
average price of both years is lowest in the month of February because of the harvesting season of this crop
while the prices at its peak with a value of Rs. 4091 in the month of Nov when there is a non-harvesting season.

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4.7.The Simple average approach for onion


Table 7: Simple average seasonal index for onion
Onion Prices 2 year average price 2 year annual
Month 2012 2013 for each month. average price Seasonal Index
Jan. 2939 1700 2319 3057 65.95
Feb. 1955 2400 2177 3057 108.85
Mar. 1194 4100 2647 3057 132.35
Apr. 1094 4800 2947 3057 147.35
May 1012 4500 2756 3057 137.80
Jun 877 3600 2238 3057 111.90
July 1373 3800 2586 3057 129.30
Aug 1905 5500 3725 3057 186.25
Sept 2435 4800 3617 3057 180.85
Oct 3495 4600 4047 3057 202.35
Nov 3870 5000 4435 3057 221.75
Dec 2687 3700 3193 3057 159.65
Table-6 shows the monthly average price data over the period of 2012 and 2013. The result shows in
the same table. The prices of onion vary in both years which cause the variation in the seasonal index. The
average price of both years is lowest in the month of February because of the harvesting season of this crop
while the prices at its peak with a value of Rs. 4435 in the month of Nov when there is a non-harvesting season.

4.8.The Simple average approach for tomato


Table 8: Simple average seasonal index for tomato
Tomato Prices 2 year average price 2 year annual
Month 2012 2013 for each month. average price Seasonal Index
Jan. 4902 5700 5301 4420 265.05
Feb. 2625 5100 3867 4420 193.35
Mar. 2515 4700 3607 4420 180.35
Apr. 1912 4000 2956 4420 148.25
May 788 5000 2894 4420 144.70
Jun 1643 7200 4421 4420 221.05
July 1643 7700 4671 4420 233.55
Aug 3033 7500 5266 4420 263.30
Sept 3856 6600 5228 4420 261.40
Oct 5585 5900 5742 4420 287.10
Nov 5237 5500 5368 4420 268.40
Dec 4159 3300 3729 4420 186.45
Table-6 shows the monthly average price data over the period of 2012 and 2013. The result shows in
the same table. The prices of tomato vary in both years which cause the variation in the seasonal index. The
average price of both years is lowest in the month of May because of the harvesting season of this crop while the
prices at its peak with a value of Rs. 5742 in the month of Oct when there is a non-harvesting season.

5. Conclusion and suggestions


In Agriculture, any analysis of output and prices must take into account the special role played by variations in
harvests. The effect of over-all economic fluctuation is overlaid on a pattern of good and bad harvests, so that an
analysis of the effect of a fall in demand on price and output must take account of variations in crop size due
solely to weather.
The introduction of tunnel technology and hybrid seed are required to enhance yield and lengthen the
production period. The value addition in vegetables can help to even out its prices. Harvest and post-harvest
management can also bring positive changes. The vegetable marketing system in Sindh in particular and
Pakistan in general is not efficient. Poor marketing system causes considerable losses. These losses become more
prominent in perishable vegetables. Suitable standards and latest technologies are needed at various levels of
marketing to improve functioning of the system. Vegetable export potential to different countries causes of
unstable vegetable prices, along with ways to reduce price instability and economic assessment of the potential
for the processing of vegetables should be explored.
In this study, an attempt has been made to develop relationship between prices and the quantity supplied
to the market. The present study estimated the price flexibility and the seasonal variation in the prices of potato,

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tomato and onion in Hyderabad market which tells us the trend of prices during the two years monthly 2012 and
2013 data of price. Weather conditions, as an example cans cause wide variations in the quantities of agricultural
products produced from year to year. Changes in the level of supply in a market characterized by an inelastic
demand lead to disproportionate price level changes. Thus, price levels in agriculture tend to be unstable over the
short-term. Fluctuations in the demand for specific foods and fluctuations in the demand for different quality
levels of food shift in relation to price level changes related to supply changes in an inelastic market. Similarly,
supply conditions in foreign markets where demand also is inelastic affect the demand for agricultural products
produced in a domestic market.
In many countries, agricultural policies are based on quantitative analysis of agricultural production
system. Different types of quantitative analyses are performed and these include measuring scale economies,
producers' responsiveness to product and input price variation and the relative efficiency of resource use (Russell
and Young, 1983, cited in Hassan, 2004). Therefore, there is a need to conduct such kinds of studies focusing on
issues relating to policy options. However, the sector needing dire attention is the vegetable sector, since this
sector possesses a lot of opportunities to flourish. The present study was planned to estimate price flexibility and
the seasonal variation in the prices vegetables on the basis of their price s and the quantity supplied to the market
in Lahore district. On the basis of this study, following suggestions are made for the selected vegetables in
Lahore to boost up vegetable production for the decrease in the prices.
If there is price hike due to the failure of the targeted crop or have low crops than in short run import
these vegetables from the neighboring countries; India and Iran or increase the supply from the other markets of
different provinces. If the prices are low in the harvesting season in this area than I purposed to enhance the time
period or to produce the short day varieties. Per acre yield of these vegetables in this area is very less as
compared to the other regions of the country for this purpose I suggest to improve the farm management
practices leading to better quality and more yields. For this new high yielding varieties may be evolved and also
use the balanced fertilizers along with micronutrients.
In the case of high price fluctuations we would have to collect and disseminate the market information.
For this purpose the policy makers must forecast the prices of vegetables according to the estimates. Agriculture
marketing crops reporting service timely release of area and the production estimation and be prepare for the
future values.
If the production is low than I suggest three ways to increase vegetable production in Pakistan
a) by increasing cropped area under vegetable cultivation
b) by developing new technology and
c) by using available resources efficiently.
Third option is the most suitable because this option does not require more area and development of
new technology. Balanced use of inorganic nutrients in vegetable production needs the attention of vegetable
growers to enhance per acre yield substantially. In spite of the application of large quantities of pesticides on
vegetables, insect pests were not well controlled and they were causing lot of damages to the vegetable crops.
This shows that vegetable growers have poor knowledge about vegetable pests and diseases. Application of
irrigation is another production aspect requiring the immediate attention. Growers should irrigate their vegetable
fields appropriately, since these vegetables are water loving and quality of output depends on irrigation. Canal
water deficiencies forced the vegetable growers to irrigate their vegetables with sewage water resulting in low
and poor quality yield. When the production is high than definitely supply of these vegetables is high in Lahore
than ultimately the prices are low in the market.
Small farmers were ignored by the extension services. Since the vegetable growers possess small land
holdings, therefore, they are not provided the extension services. This suggests that the extension services should
be expanded to vegetable growers especially the Onion, potato and tomato growers and this will help in
increasing in the production. Thus it is the time for the extension workers to revise their policies and to focus on
minor crops as well including vegetables. Training of extension staff in vegetable growing practices is the most
important step needing careful attention of the concerned authorities. According to Fraser and Cordina (1999),
"it is all very well having best practice described by an extension officer on a farm visit, but being able to
observe directly best-practice farming techniques will enhance the learning experience."
Vegetable export potential to different countries causes of unstable vegetable prices, along with ways to
reduce price instability and economic assessment of the potential for the processing of vegetables should be
explored.

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