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Tomato prices soar amid supply crunch – Business News
Retail prices of tomatoes crossed Rs 75/kg in several cities as heavy rains in Himachal Pradesh and Uttar Pradesh disrupted supplies, while production was hit by heatwave conditions in northern states.
The modal average retail prices of tomatoes across the country, according to the consumer affairs department, rose to Rs 50/kg on Saturday from Rs 25/kg prevailing two months ago. Wholesale prices rose to Rs 40/kg on Saturday from Rs 20/kg prevailing a month ago.
However, average retail prices were much higher at Rs 100/kg a year ago as excess rains in hilly states disrupted supplies, prompting the government to sell tomatoes at subsidised prices.
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In Delhi’s Azadpur Mandi, the largest wholesaler Marketplace For fruits and vegetables in Asia, tomato prices have risen to a range of Rs 50 – Rs 60/kg currently from Rs 10 – Rs 20/kg prevailing a month ago.
“Prices are unlikely to come down in the next few weeks because of supply constraints due to the heatwave affecting the crop in northern states and heavy rains in Himachal Pradesh and Uttarakhand are likely to affect supplies,” Ashok Kaushik, president of Azadpur market tomato association, told FE. Kaushik said currently most of the supplies are from Karnataka and supplies from Maharashtra and northern states would bring down prices next month.
“Harvesting in Maharashtra will start by mid-August and prices are likely to come down next month,” said Uday Deolankar, an advisor to the Maharashtra Agriculture Department. marketing department, he said.
Benchmark tomato mandi prices in Kolar, Karnataka, rose 65% to Rs 3,300/quintal on Saturday from Rs 2,000/quintal prevailing a month ago.
According to the agriculture ministry’s assessment, the target area for kharif tomato this year is 0.27 million hectares (MH) as against 0.26 MH sown last year. “Crop conditions are reported to be good in major producing areas of Chittoor in Andhra Pradesh and Kolar in Karnataka and in Kolar, tomato harvesting has started and will hit the market in a few days,” an official note said.
Tomato production is estimated at 21.23 million tonnes (MT) in the 2023-24 crop year, compared to 20.42 MT in the previous crop year.
Tomato inflation last month was 40.96% on the year, while prices rose 202% a year ago. Then, in September last year, prices started to fall.
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 statement, the planting and harvesting cycle and variation across regions are primarily responsible for the seasonality in tomato prices. “The supply of tomatoes is spread across the country, any production vulnerability in any of the states disrupts the supply chain,” the statement said. The department has identified June-August and October-November as lean production months when prices rise during these months.