Why don’t Indian fruit sellers make it big despite good profits? Imperfect competition, says study -Nikhil Rampal

-ThePrint.in

Study by Nobel laureate Abhijit Banerjee & other scholars from US, UK and Canada found that fresh produce vendors charge high mark-ups but fail to adopt competitive market practices.

New Delhi: Anyone who has haggled with a thelewala or streetside vendor in India knows that they often apply big mark-ups on prices and make good margins. Yet, selling fruits and vegetables in India is generally associated with “peanuts” when it comes to earnings and business potential.

To understand why this is so, Nobel laureate Abhijit Banerjee of the Massachusetts Institute of Technology in collaboration with scholars from reputed universities in the US, the UK, and Canada studied the market behaviour of more than 1,500 fruit and vegetable vendors in Delhi.

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