While buying vegetables from farmers at very cheap prices, traders turn profits by driving up retail prices as much as five-fold.

Large discrepancy between wholesale and retail prices for vegetables

These bargain for low buying prices but increase selling rates to multiply their profits.

Lam, a vegetables grower from Dong Du Commune of Hanoi’s Gia Lam District, said, “Vegetables villages often ensure sufficient supply for the inner city but traders often tell consumers that the supply is limited. When they buy from us they complain about the decrease in demand from the city.”

A survey found that there has been a large discrepancy between wholesale and retail prices for vegetables.

In Hanoi’s outlying districts, farmers sell cabbage at VND4,500 (USD0.21) per kilo, but traders drive up retail prices to VND7,000 (USD0.33) per kilo in Hoang Mai District, and VND8,000 (USD0.38) per kilo in Nga Tu So market of Thanh Xuan District.

In the outlying districts of Tay Mo and Ha Dong, small eggplants are priced at VND13,000 (USD0.62) per kilo, but the price can reach VND20,000 (USD0.95) per kilo in Dinh Cong, Hoang Mai, and Truong Trinh Streets and VND22,000 (USD1.05) per kilo in Khuong Thuong Street.

Wholesale tomatoes are sold for between VND2,000 and VND3,000 (USD0.09-USD0.14) per kilo in vegetables villages of Tay Tuu, Minh Khai and Dong Du, but retail prices are about VND6,000 (USD0.28) per kilo in Khuong Thuong market in Thanh Xuan District and Lang Ha market in Ba Dinh District.

The same situation has been recorded for morning glories. Wholesale prices in Phu Dien of Tu Liem District and vegetables villages in Thanh Tri District are only from VND2,000-VND3,000 per bunch, but retail prices are from VND6,000-VND8,000 in Mai Dong market in Hoang Mai District and Mo market in Hai Ba Trung District.

Huyen, a vegetable trader in Mai Dong wholesale market, said that it’s normal to see that prices of vegetables and fruits higher than the prices in the countryside.

However, in fact, this leads to unfairness for the growers.

Pham Thanh Hoang, a farmer from Thanh Tri District, said, “My family has two hectares to grow on. We would like to earn money of course, but it is hard to with the low prices that traders are willing to pay.”

He added that traders often collectively set prices, forcing farmers to sell because there is no alternative.