There has been a tectonic shift in business at the Koyambedu wholesale market. While the sale of fruits has spiralled, that of flowers and vegetables has nose-dived.
The major hub for retailers within a 150km radius now caters largely to neighbourhood markets in the Chennai Metropolitan Area, with consumers able to access fruits at reasonable prices at their doorsteps. The fruit market which on average sold about 2,000 tonnes daily in December 2019 sold 500 tonnes more this December, thanks to the demand from newly emerged mobile vendors.
T Gunasekar of Pallikaranai, who lost his job during the pandemic, now procures fruits from Koyambedu and sells them in Nandanam and RA Puram for Rs 15/kg-Rs 20/kg less than neighbourhood markets. The Rs 1,000-Rs 1,200 profit the 35-year-old takes home daily is more than what he earned earlier.
People like Gunasekar have impacted neighbourhood stores who are recording a significant drop in sales. With only regular customers visiting, they are being forced to offer additional discounts to stay afloat. S Srinivasan, president of Chennai Fruits Commission Agents Association, said mobile fruit vendors now made up 50% of the customers in Koyambedu. “The demand from retail traders and supermarkets has shrunk.” Vegetable sales are down by 30%, with demand from traders at Tirupati in AP, Tindivanam in Villupuram and Kancheepuram dipping. Retailers from outside Chennai and suburbs are sourcing vegetables directly from principal agents.
S Chandran, secretary of Federation of Wholesale Vegetable Market Associations, said several mini-wholesale markets had come up in districts near Chennai and traders were coming to Koyambedu only to buy potatoes and onions. “In December, we usually get 500 truckloads for sale daily. Now, traders are struggling to sell even 350 truckloads.” S Mookaiah, president of Chennai Koyembedu Flower Traders Association, said business had plunged by one-third as new wholesale markets had sprung up in areas such as Vadapalani, Padi and Retteri. “We were earlier facing challenge only from Kothavalchavadi.”