Surplus rains in Karnataka push up tomato prices by 66% | The Financial Express

Surplus rains in Karnataka push up tomato prices by 66%

IMD predicts more rains over south interior of state.

Surplus rains in Karnataka push up tomato prices by 66%
Meanwhile, mandi prices of onion at Lasalgaon (Maharashtra) have declined by more than 20% to Rs1,220 a quintal from a year ago because of bumper rabi output. (Image: IE)

Surplus rains in the key tomato-growing regions of Karnataka, one of the key producers of the vegetables, in the last few days have adversely impacted the arrivals in the mandis, thus pushing up prices.

The benchmark mandi prices of tomato at Kolar in Karnataka rose by 66% to Rs1,330 a quintal on Tuesday from a week ago. Traders say prices are expected to rise further in the coming weeks because of the adverse impact of rains on the crop yield.
The current mandi prices of tomatoes are still 150% more than a year ago. In June, mandi price was prevailing at more than Rs3,000 a quintal, which pushed retail prices to Rs90/100 a kg. In the last couple of days, retail tomato prices have risen to Rs 50 a kg from Rs40 a kg prevailing a fortnight back.

South interior Karnataka consisting of Kolar, Tumakuru, Chikkaballapura, Ramanagara, Mandya and Mysuru districts, which are key vegetable-growing regions have received 69% more rainfall than the normal benchmark – long period average — in this monsoon season.

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With the India Meteorological Department (IMD) on Tuesday predicting intense rainfall activities over coastal and south interior Karnataka in the next two days, tomato and other vegetable prices are expected to rise because of loss of crops.
“Water-logging in fields has delayed the harvest of tomato as well as productivity has been hit,” a trader at Kolar, Karnataka, told FE.

Meanwhile, mandi prices of onion at Lasalgaon (Maharashtra) have declined by more than 20% to Rs1,220 a quintal from a year ago because of bumper rabi output.

Traders said that the production of stored rabi onion (which is currently being supplied), which has a share of around 60% in the total output, has been around 20% more than the last year in Maharashtra and Karnataka — the key producing states.
At Azadpur, Asia’s biggest market for fruits and vegetables, onion prices are ruling around Rs15/ a kg while modal retails prices as per the ministry of consumer affairs was Rs25/a kg.

“Prices were ruling around Rs30 a kg last year, because of lower production,” Giriraj Chauhan, a trader or commission agent at the Azadpur mandi, said.

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Onion production in the 2021-22 crop year is estimated at 31.7 million tonne (mt), which is 20% more than the previous year. However, prices of potato in Agra market rose 65% to Rs1,500 a quintal from a year ago because of record production last year.

Traders say prices are expected to rise prior to the arrival of next year’s crop by October.

According to the department of consumer affairs, modal retail prices of potato on Tuesday was Rs25 a kg.

In July, inflation for potato and tomato rose by 23.79% and 44%, respectively, while garlic and onion price inflation was down 29.73% and 20.57% on year.

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