Tomato prices rise
In many areas of the country’s capital Delhi, the prices of tomatoes have gone above Rs 80, to control which the Government of India has started selling cheap i.e. discounted tomatoes in the national capital Delhi. To reduce the prices of tomatoes, this scheme will soon be extended to other parts of the country also. This decision has been taken because last month’s cyclone Montha caused huge damage to the crop and prices increased rapidly. This information was given by two government officials related to the case.
The impact of the cyclone has affected supplies in major tomato growing areas like Andhra Pradesh and Karnataka, due to which shop prices have gone above Rs 80 per kg in many areas of Delhi. The Consumer Affairs Ministry has decided to sell Janata brand tomatoes at Rs 52 per kg through the National Cooperative Consumers Federation of India (NCCF). Officials said that this step has been taken before the start of the winter session of Parliament, which will run from December 1 to 19.
In recent times, both wholesale and retail prices have increased due to reduced supply in Delhi, Haryana and UP. An official said that the crop was damaged due to heavy rains and strong winds of Cyclone Montha, after which the prices suddenly increased. In the coming days, this discounted sale of tomatoes will be started in other states also. This is the government’s first intervention in the market in November. Usually such a step is taken between August and October, when the shortage of tomatoes increases due to monsoon.
tomato production
According to the third advance estimate of 2024-25 of the Agriculture Ministry, tomato production in the country is estimated to decline to 19.46 million tonnes from 21.32 million tonnes last year. The contribution of Andhra Pradesh and Karnataka is 16% and 10% respectively. There are also reports of crop damage and reduced arrivals in big markets like Madanapalle in Andhra and Kolar-Chikkaballapur in Karnataka. Another official said, we constantly keep an eye on the prices of all essential commodities and take action when necessary. At this time, generally the supply of tomatoes is good, but due to crop failure there has been a shortage and there has been chaos in the market. The sale of public tomatoes will continue until the prices come within the range of Rs 4050 per kg. NCCF will also sell onions at Rs 15 per kg at many places in Delhi NCR. Questions were asked to the ministry regarding this via email, but no response was received till the time of writing. Tomatoes are distributed through mobile vans and stalls at Krishi Bhawan, Barakhamba Road, Khari Baoli, Saket, Malviya Nagar, Patel Chowk, R.K. Puram, Nehru Place, Rohini, Dwarka and Noida.
tomatoes in subsidy
In 2024, the government had intervened twice to stop the rising prices of tomatoes. In July, when prices had reached Rs 80,100 per kg, subsidized tomatoes were sold at Rs 60 per kg. The second step was taken in October, when the average market price was Rs 100 per kg and subsidized tomatoes were offered at Rs 65 per kg. In 2023, the price had gone up to Rs 250 per kg, then the government had to sell tomatoes at Rs 90 per kg and later reduced the rate to Rs 40 per kg. Sadashiv Halur, a farmer from Mulbagal in Kolar district of Karnataka, said that we had expected a good crop, but the rain caused damage. The cost has already increased, so it will be difficult for small farmers to repay the loan. According to a state horticulture official, about 765 hectares of crop has been damaged due to unseasonal rains, while tomatoes are grown in 39,474 hectares in the entire state.
Agricultural policy expert and former MD of SFAC, Pravesh Sharma said, tomato is the most volatile vegetable. If there is even a slight problem in Andhra or Karnataka, retail prices increase in North India. This step will manage prices in the short term, but the real problem is that we are over-dependent on a few selected areas. Unless there is investment in small production areas and better storage facilities across the country, this problem will be repeated every year.
tomato prices in delhi
According to government data, the retail price of tomato in Delhi on November 25 was Rs 80 per kg, which is 66.7% more than last year’s Rs 48. In Kolkata, the price increased from Rs 52 to Rs 73 per kg (40.4% increase) and in Chennai it increased from Rs 40 to Rs 75 per kg (87.5% increase). The surprising thing is that the prices have increased at the shops, but the prices in the wholesale market have remained almost the same. On November 25, the wholesale price was Rs 4,182 per quintal, which is only 0.53% more than last year. This makes it clear that the margins of retail shopkeepers have increased. According to Delhi University economist Abhash Kumar, the weight of tomato in the consumer food price index is 0.6%, so the increase in its price has a short-term impact, but does not make much difference on the overall inflation.
Former Assistant Director General of ICAR, BB Singh, said that the government took early action because tomatoes play an important role in food items and even a slight increase in prices could lead to political criticism during the Parliament session. The government will keep a close watch on the market until the supply returns to normal in December. Amar Thakur, a businessman from Solan district of Himachal Pradesh, said that at present he is ordering tomatoes from Nashik and the supply is less. However, the prices are expected to come down in the next 2025 days, because new tomatoes will start arriving from Rajasthan and Punjab. Tomato is grown in Himachal in the season of June to October. The country’s retail inflation fell to an all-time low of 0.25% in October, which was 1.44% in September and is much lower than RBI’s estimate.