Retail tomato prices to drop as supplies from MP & HP commence – Economy News

Retail prices of tomatoes, which have soared over the last couple of weeks, are likely to decline with an improvement in supplies from Madhya Pradesh and Himachal Pradesh.

Ashok Kaushik, a commission agent and member of Azadpur market tomato association, said that the average wholesale price at the one of the largest vegetable markets in India has declined to about Rs 50/kg – Rs 60/kg from Rs 80- Rs 90/kg three weeks ago.

“The retail price of tomatoes will start declining soon as supplies have improved due to arrivals from Madhya Pradesh and Himachal Pradesh,” Kaushik told FE.

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Currently, in retail markets, tomato prices have surged to Rs 90-100/kg, up from Rs 40-50/kg just three weeks ago. This hike has been attributed to a disruption in the supply caused by rainfall in key producing states like Karnataka and Maharashtra.

Earlier in the week, to curb the spike in tomato prices, government agencies, the National Cooperative Consumers’ Federation of India (NCCF), and farmers’ cooperative Nafed began selling the vegetable at Rs 65/kg through various retail outlets in Delhi and neighbouring cities.

The Centre launched this market intervention under the price stabilisation fund to manage the rising prices in the retail market. In July as well, Food Minister Pralhad Joshi had initiated a similar move, selling the vegetable at 60/kg to control price rises.

An official from the department of consumer affairs had stated that there is a significant difference between wholesale and retail prices of tomatoes, particularly in the national capital region, as some traders are taking advantage of rising demand due to the festive season. 

“The retail price of tomatoes has seen an unwarranted increase in recent weeks despite continuous arrival in mandis in good quantities. Rainfall and high humidity due to prolonged monsoon in major producing states such as Andhra Pradesh, Karnataka, and Maharashtra have reportedly led to quality concerns in recent weeks,” according to a recent official statement by the department of consumer affairs. 

The note stated that “the possible role of market intermediaries in the current price rise in this high demand festive season may not be ruled out.”

Retail tomato prices declined 47.91% in September on year because high prices prevailed a year ago. Tomato production is estimated at 21.32 million tonne (MT) in 2023-24 crop year (July-June), a 4.4% increase on year.

Around 18 states, including Madhya Pradesh, Gujarat, Maharashtra, Chhattisgarh, Odisha, West Bengal, Telangana, Karnataka, Tamil Nadu, and Punjab contribute to the country’s tomato production.

According to an official note, the cycle of planting and harvesting seasons and variation across regions are primarily responsible for price seasonality in tomatoes. “Tomato supply is spread across the country, any production vulnerability in any of the states disturbs the supply chain,’ the note stated. The department has identified June-August and October-November as lean production months when prices rise during these months.