Diverging trends in banana prices and market arrivals: A case study of Ravulapalem Regulated Market, Andhra Pradesh

Abstract

India is one of the largest producers of bananas with Andhra Pradesh contributing significantly to national output. The Ravulapalem regulated market often referred to as the “Banana Capital of Andhra Pradesh,” plays a crucial role in banana trade and farmer livelihoods. However, recent years have shown contrasting trends in arrivals and prices indicating possible supply-demand imbalances. The present study analyzes the long-term trends in banana arrivals and prices in the Ravulapalem market during 2013–14 to 2023–24 using secondary data from APMC records. Analytical tools such as the Compound Annual Growth Rate (CAGR) and Simple Linear Regression were employed to assess growth patterns and trend significance. Results revealed a significant decline in banana arrivals from 68.43 lakh bunches in 2013–14 to 37.41 lakh bunches in 2023–24, with a negative CAGR of ?6.62%. In contrast, average prices rose from ?161 to ?325 per bunch, showing a positive CAGR of +7.13%. Regression analysis confirmed a downward trend in arrivals and a strong upward trend in prices. The study concludes that declining production and limited supply have contributed to sustained price increases. Strengthening post-harvest infrastructure, production stability and market intelligence systems is vital to ensure balanced banana marketing and income security for farmers.