“Tomato Prices Set to Drop as Maharashtra and Madhya Pradesh Boost Supplies”

Tomato

The government said today that the increased supply of fresh crops from Maharashtra and Madhya Pradesh should result in a decrease in tomato retail prices.

Retail prices have increased to $200 to $250 per kilogram in certain regions of the nation as a result of supply chain disruption brought on by monsoon rains and other problems.

Tomato price

Ashwini Kumar Choubey, the state minister for consumer affairs, food, and public distribution, stated in a written response to a question from the Rajya Sabha that “prices of tomato are expected to come down with the increase in arrival of new crop from Nashik, Naryangaon, and Aurangabad belt in Maharashtra as well as from Madhya Pradesh.” He said the “current increase in tomato prices may incentivise farmers to grow more tomato crop which is expected to stabilise the prices in coming months”.

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Mr. Choubey explained the recent spike in prices by citing a number of factors, including “crop seasonality, white fly disease in Kolar (Karnataka), instantaneous arrival of monsoon rains in the northern part of the country, which adversely affected tomato crops in Haryana and Himachal Pradesh, and logistics disruptions in isolated areas due to heavy rains.”

The minister responded to an inquiry from independent member Kartikeya Sharma by stating that during the week of July 10–16, the average daily retail price of tomatoes had surpassed $15.00 per kg in Delhi, Punjab, Chandigarh, and the Andaman & Nicobar Islands.
As of July 18, the typical retail price in Punjab was 127.70 and Delhi was 130 per kilogram.
The government has begun purchasing tomatoes under the Price Stabilization Fund in an effort to control their costs and make them affordable, and is now selling them to consumers at a price that is heavily subsidized.

Tomato

The National Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing Federation (NAFED) regularly purchase tomatoes from “mandis” in Andhra Pradesh, Karnataka, and Maharashtra and distribute them at competitive prices to major consumption hubs including Delhi-NCR, Bihar, and Rajasthan.
Tomatoes were first offered at a retail price per kg of 90, which was then lowered to 80 on July 16 and then to 70 on July 20.

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391 tonnes of tomatoes in total had been purchased as of July 18 for ongoing retail disposal in major consumption centers for the benefit of consumers.
In the event of a bumper crop during the peak arrival period, when prices tend to fall below economic levels and the cost of production, the Department of Agriculture & Farmers Welfare (DAFW) is implementing the Market Intervention Scheme (MIS) to protect the growers of perishable agri-horticultural commodities from making distress sales.

According to the plan, the national and state governments split the loss resulting from the price decline 50:50.
The minister stated, “Since the implementation of MIS to date, the Department of Agriculture and Farmers Welfare has not received any proposal from state governments for market intervention to address tomato distress sales.”

 

 

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