Saturday, October 25, 2008

Wat's the Price of that Mango ???

Artificial creation of Demand.

Sometimes i wonder,
How come the Mangoes in the summer season last up until ... the rainy seasons???

Mangoes start arriving in summer which is the Feb-March month(according to mumbai's weather situations) & they last up a long time, almost till the rains arrival(July).

Is there no one in the City buying Mangoes ?

According to a lot of Interviews that i have read of different people in the papers, according to different articles, surveys, studies, etc --- every Tom, Dick & Harry
seems to be loving Mangoes.
(i too am one of them, Hehee :D) (mind you i said 'Loving' not just 'Liking').

Mangoes are on the top of the list of any & everybody in the City.
we call Mango, the King of Fruits.
we all just Love mangoes(the form doesn't matter either).
Mangoes will be the first choice for the major population in the city, if given a choice.

So according to these studies, surveys etc,
Mango is the fruit everybody likes to eat, we all buy it.

So then, how come the Mangoes aren't finishing a little early, like in the end of summer itself, how come they last till the first month of rainy seasons ?

The rains have set in, its almost July, but we still see Bhaiyaji's selling mangoes with their Trademark Blue colored plastic material(which has got Holes in it, in order for some rain water to enter inside the tent, dunno why???) over their head to save their Mangoes from the Rain lashes.

so then :
What happens ? How come ?

May be this is what happens :

There is News everywhere in all the papers, on all the channels ...
Everywhere there are Headlines , stating that :

Due to unseasonal rains, a large amount of Mango crop was destroyed ...
Due to Drought in a lot of places,
There was less Water,
Water supply wasn't readily available, proper Irrigation also was an issue,
due to which Mango has not been produced in sufficient quantity,
like it was produced in the Last year, & this time its lesser than the last year.

all these News forces people to believe there is less Mango supply.
(the above line in 'economics' jargon will be termed as, Supply < Demand )
& this is immediately followed by, another consequence,
Mango prices suddenly shooting up, sky rocketing Mango prices.

1 dozen Mangoes (12 Mangoes) are costing around Rs400-Rs450 bracket!!!

A lot of people are still buying it, though they don't like that price, but as it the King of all fruits, we need to get a Taste of it, atleast once a year.

According to above situations,
the Mango crop being destroyed & other Bad News etc etc ,
the Mango crop has to be less in supply,
which means it should have been finished pretty early,
sometime around in the end of Summer,
but we still see Mangoes being sold till end of July - the Rainy seasons.

And now, this time around, if you go to buy the Mango(in July) ,

you suddenly find yourself paying Rs200 per dozen
(the Bhaiyaji says, 'thik hain memsaab 200 rupay mein dozen le jao')

the same Mangoes selling for Rs450 at the start of the season, are being sold for Rs200 in July.
Only, because there is an Excess stock of mangoes, which the Bhaiyaji's are finding hard to finish, they then start selling it for lower prices, as there is a Huge stock still left to be sold.

All This makes me feel,
Was there a shortage of Supply in the First place itself ???

there wasn't any Shortage of Supply.

all that bad news (of Mango crop destroying) was just created by people related to the business(most probably the 'Netas'), in order to Push the Mango Prices up.
so as to get double, thrice, four or even five times of the prices of the same Mangoes , which will be sold for Half the price in the End of the season.

All this was just done to
Artificially create Demand(by reducing supply-which never happened in reality) & push prices Upwards.

Now, that is some cool Economics concepts under work here.


Pooja said...

hmmmm... interesting....

Vicky said...

Replies :

Hey pooja, thanks a lot for the comments...

Raga WebGraphics said...

Nice post ya, loved reading it. Please write some more posts. Will love to read. said...

This is Intriguing!