Soaring Tomato Prices: Market Disruptions and Government Intervention
Soaring Tomato Prices: Market Disruptions and Government Intervention
Tomato prices have once again skyrocketed, with the vegetable now selling at over Rs 100 per kg in several markets.
The sudden price hike in price of tomatoes comes after unseasonal rains and a virus attack damaged the tomato crop in key farming areas around Nashik, leading to a significant reduction in supply within just a week.
While some farmers have benefited from the price increase, others have suffered losses due to the damage caused by heavy rains. “If some farmers are profiting, there are others who have faced significant losses,” said president of Sahyadri Farms, a leading tomato buyer. Shinde expects prices to stabilize once fresh crops arrive, although yields from Western Nashik are anticipated to be lower.
In an effort to curb the recent spike in tomato prices, the government will begin selling tomatoes at Rs 65/kg starting on Monday through retail outlets of the National Cooperative Consumers’ Federation of India (NCCF) and Safal in Delhi and neighboring cities. An official from the department of consumer affairs stated, “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 during the festive season.”
Currently, retail tomato prices across major cities have surged to Rs 80-90/kg, up from Rs 40-50/kg just two weeks ago. This increase is attributed to supply disruptions caused by rains in key producing states like Karnataka and Maharashtra. The Centre has launched this market intervention under the price stabilization fund to manage rising tomato prices in the retail market.
In July, food minister Pralhad Joshi initiated a similar move, selling tomatoes at Rs 60/kg to control price hikes. “NCCF is procuring tomatoes from wholesale markets and selling them at reasonable prices to ensure profit margins remain fair and to prevent intermediaries from making windfall profits, ultimately protecting consumers,” the official statement added.
Retail tomato prices declined by 47.91% in September due to previous high prices, highlighting the volatility in the market and the ongoing challenges faced by both consumers and farmers.
