News

Minister clarifies commodity price fluctuations

November 16, 2019 12:27 pm

Minister for Agriculture Dr. Mahendra Reddy has clarified the issue of fluctuating market prices for some agricultural products.

He made clarifications to farmers of Taveuni during his consultative tour on the island.

Dalo farmers from the island raised their concerns on the current decreased market price of dalo being paid out to them.

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Dr. Reddy elaborated that the Agriculture Ministry could not impose or set regulations for price control as the Government could not set limits over certain commodities as these were subjected to market demands as part of the free market scenario.

He says currently, the Government cannot set the minimum buying price for a commodity and neither can they set the maximum selling cap for an agricultural commodity.

The Minister says regulating the price for a certain agricultural commodity would be an unfair practice and would simply put or have drastic effects on the national economy.

Dr. Reddy told the farmers that the drop in the price was to be expected as there is an influx of the commodity on the island and the market is flooded, as an outcome, the price of dalo will decline.

He also encouraged farmers to not be disheartened with fluctuations in price as it would normalize in time.