What impact does the poor demand and bountiful output have on the kinnow price, leaving farmers in distress
Poor demand and bountiful output have caused a plunge in kinnow price, leaving farmers in distress.
The poor demand and bountiful output of kinnow (a type of citrus fruit) have several impacts on its price, which consequently distresses the farmers. These include:
- 1. Oversupply: Bountiful output leads to an excess supply of kinnow in the market, often surpassing the demand. This oversupply causes a downward pressure on prices as sellers compete to offload their surplus produce.
- 2. Price reduction: The surplus kinnow supply pushes down the market price, resulting in reduced profitability for farmers. This decrease in price severely affects their income and ability to cover production costs.
- 3. Market saturation: With poor demand, the market becomes saturated by kinnow, making it difficult for farmers to sell their produce at a desirable price or find suitable buyers. This further aggravates their financial distress.
- 4. Storage and wastage: If farmers are unable to sell their kinnow at a fair price, they may have to resort to storing the fruit. However, storing kinnow for extended periods can lead to quality deterioration and wastage, causing additional losses for the farmers.
- 5. Debt accumulation: The combination of poor demand and low prices often forces farmers to sell their kinnow at a loss, or they may not be able to sell it at all. This results in accumulated debt for the farmers, making it even more challenging for them to sustain their livelihoods.
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a year ago