Consumers feeling the pinch of high tomato prices since the last week of June are expected to get relief in the next two weeks, as arrivals from key producing states like Maharashtra and Karnataka pick up.
Retail prices of the common vegetable are currently ruling at Rs 160-170/kg in most cities. Crops from Maharashtra and Karnataka, which together have a 17% share in production, will stat arriving in the market in large quantities from next week.
The department of consumer affairs has projected that tomato production would increase to 0.54 million tonne (MT) this month from 0.22 MT in July due to higher output from Karnataka, Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh and Himachal Pradesh.
“We expect tomato retail prices to start moderating from next week,” Rohit Kumar Singh, secretary, Department of Consumer Affairs, said.
“Mandi prices are currently ruling around Rs 120-130/kg, and expected to decline as there are reports of higher crops arrivals from south and western parts of the country in the next one week,” Ashok Kaushik, president, Azadpur market tomato association, told FE.
Excessive rains and floods in north, northwest and hilly regions during July led to inundation of field and crop damage impacting tomato supply and causing a surge in retail prices to beyond Rs 200/kg in Delhi market.
While modal retail prices of the vegetable was Rs 140/kg on Tuesday, according to the consumer affairs department, there has been large variations in prices across cities. Prices in Delhi and Mumbai were quoted at Rs 177/kg and Rs 165/kg, respectively.
According to the government’s assessment, tomato arrivals from Himachal Pradesh had dropped to only 1,505 tonne in July from 10,875 tonne a year ago.
Meanwhile, the benchmark mandi prices of tomato at Kolar, Karnataka, declined by 28% to Rs 6,670/quintal on Monday from its peak of Rs 9,330/quintal on August 1. In early June, mandi prices were only Rs 2,000/quintal.
“Arrivals would peak up over the new weeks which would pull down the prices from a record high,” Uday Deolankar, adviser to the Maharashtra agriculture department, said. However, he said that moderation in the prices would occur in the next two weeks while the prices would fall sharply by October when harvest from Madhya Pradesh would enter the market.
Currently, National Cooperative Consumers Federation (NCCF) and farmers’ cooperative Nafed have been selling tomatoes at the retail price of Rs 70/kg since the middle of last month at several places in Delhi NCR, Bihar, Uttar Pradesh and other states.
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.
Tomato production in the 2022-23 crop year (July-June) has declined marginally to 20.62 MT compared to previous year. Tomato has a weightage of 0.6% in CPI inflation.
According to an official note, the cycle of planting and harvesting seasons and variation across regions are primarily responsible for price seasonality in tomatoes.
“Apart from the normal price seasonality, temporary supply chain disruptions and crop damage due to adverse weather conditions etc. often lead to sudden spikes in prices,” according to the note.