Vegetable Prices Possess Seasonal Volatility: A Case Study of Lahore, Punjab, Pakistan

Abstract

The present research was conducted to determine the seasonal volatility of four important vegetables in Pakistan. The four vegetables included in this study are onion, tomato, potato, and cabbage. The first three of which are necessary kitchen items in the food consumption of the country. The study area is comprised of the Lahore district of the Punjab province which is the most populous city in the province and the major producer of the vegetables in the country. Secondary data of the year 2010 and 2011 about prices and quantity of these four vegetables were collected from the market committee and agriculture marketing information system Lahore. The price flexibility coefficient was estimated along with the seasonal behavior concerning prices for perishable vegetables. The results indicate that the irregular seasonal and cyclical fluctuations observed every year. Price fluctuations for onion, tomato, potato, and cabbage are seasonal. After the harvest, low prices were observed while price were observed high before the start of the season when relative supply shortage occursand vice versa. Hence, the study suggests that prices can be controlled by intervening in the market by increasing supply and production using new technology and high yielding seed varieties.