Understanding agri supply chain dynamics and price wedges

Project Active from to Trade and Firms

This project seeks to understand why large price wedges exist in the fresh produce supply chain, focusing on farmers and middlemen that supply to and operate in Pakistan’s Badami Bagh Fruit and Vegetable market.

This study documents the supply chain from the wholesale market to retailers, focusing on farmers and middlemen that supply to and operate in Pakistan’s Badami Bagh Fruit and Vegetable market. 

The Government of Punjab employs various regulatory measures to control food inflation. Some of these are enforced in the wholesale markets, while others are enforced directly on the retailers. The fact remains that some agents are targeted more than others, and the broader economic rationale and consequences of such actions are poorly understood. 

This project seeks to generate primary data-based findings on why large price wedges exist in the supply chain of fresh produce as it changes hands between various economic agents. Specifically, it aims to:

  1. Conduct a detailed mapping of the supply chain network for onions, potatoes, and tomatoes from the wholesaler to the retail market as the commodity changes hands between agents.
  2. Track price levels at each stage of this supply chain and accurately determine the profit margins.
  3. Provide actionable insights that can inform public policy in this domain while working in close collaboration with the Government of Punjab’s Department of Agriculture.