Contest : Experience with agricultural product markets”

INTRODUCTION

In every market, there are two main forces that drives or determines the prices of commodities. The force of demand and supply drives the prices at which buyers and sellers tag their products.

The prices of agricultural products are also driven by the forces of this demand and supply. Farm produce harvested in or out of their season have different prices. For instance, the price of corn may be higher in the market when it is harvested out of season. Farmers who produce out of season seem to be in more advantage to make more gains.

I plant varieties of crops but in a small scale. In my country, banana is an all-year round commodity. The major harvest of this Produce occurs from October when it would flood the market. So as it stands now, I have started to harvest some of my banana to sell to the market before it becomes filled in the market.

Current supply Of Banana in The Market and Traders Behavior in the market
The supply of banana in the market is gradually on the increase. From next month of October running through the end of the year, the commodity will fill the market because of increase in harvest. As at the time of my writing, the price of banana in my area is still high because of increasing demand. Some farmers are now selling off their produce early to take advantage of the current high prices.

This high price is also occasioned by the role of the traders (middle men) who buy directly from farmers at fair high prices to sell at more high retail prices. By this act, they making huge returns or profits from business.

From next month of October, banana supply would be on the increase. Towards November and December, the demand for the commodity falls and prices falls. At this time, farmers are forced to sell at whatever price they are offered.

The middle men or traders applies caution on the quantity they could buy so as to easily sell off to avoid total loss or perish. If the traders are not sure of demand or are positioned well in the market to sell the commodity, the producers or farmers finds it hard to also sell their commodity and may lead to the perishing of their produce. This is the aspect that makes trading in this commodity risky.

The Role Of Local Administration in controlling The Market

There is no board or agency in charge of controlling the market for the commodity. Producers and traders alike are free to operate and determine the supply, the demand and prices of the commodity in the market.

When I harvest my banana, I make contacts to the buyers or middle men. I set the prices of my commodity and if I am satisfied with the price offered by the traders, I sell my commodity without any form of influence from anyone or government agency. We operate a free market in my area.

The market requires good timing from harvesting the produce to selling it in the market.

Cc:
@abdul-rakib