With the onset of winter, vegetable prices in Gelephu, particularly for potatoes, have risen significantly compared to previous months. Other vegetables have also seen price increases in this southern business hub. According to vendors, retail prices are expected to remain elevated in the near future.
Vendors attribute the spike in prices to a poor potato harvest in India, resulting in a demand-supply mismatch. Currently, Bhutanese potatoes in Gelephu cost Nu 80 per kilogram, up from Nu 60, while Indian potatoes are being sold at Nu 50, a rise of about Nu 30. Some vendors are offering Bhutanese potatoes at Nu 70 per kilogram.
Vegetable vendors in Gelephu procure potatoes from Phobjikha at a rate of Nu 3,000 per sack, which, combined with transportation costs and reduced imports from India, has forced prices higher.
The price of other vegetables has also increased. For instance, the cost of carrots has risen by Nu 20 per kilogram, now selling for Nu 80, compared to Nu 60 before November. Indian chili prices have surged by Nu 50, currently costing Nu 200 per kilogram.
Pema, a vegetable vendor, explained that unfavorable weather in India has impacted potato production. She noted that sourcing potatoes from other parts of Bhutan during the off-season also contributed to the price increase. “Despite customer complaints, we have no choice but to raise prices,” she said.
Another vendor, Yoezer Dorji, highlighted the high procurement costs for Bhutanese potatoes from Phobjikha and reduced Indian imports as reasons for the price hike. He added, “Transportation charges and low supply from India are driving up market prices.”
Kamal, who sells both Indian and Bhutanese potatoes, emphasized the challenges of managing a perishable goods business. “Prices fluctuate with supply and demand, leaving us with no option but to increase prices,” he said.
However, not all prices have risen. With new production, the price of tomatoes has decreased from Nu 120 to Nu 80 per kilogram. Bhutanese chili prices have also dropped from Nu 180 to Nu 100, and the cost of local beans has fallen by Nu 80, now selling for Nu 100 per kilogram.
Meanwhile, residents, particularly civil servants, are feeling the pinch of rising vegetable prices. A public servant noted, “We have no choice but to buy vegetables at any rate.” Another commented that civil servants are among the most affected, as farmers grow their own produce.
With budgets strained, residents are hoping the upcoming monsoon season will bring some relief and stabilize prices.
Sangay Rabten from Gelephu
