Tomato Prices to Cool Down in the Near Future, says Centre

Tomato prices: Due to a sharp jump in tomato prices, the central government on Wednesday directed agencies – NAFED and NCCF – to procure tomatoes from mandis in major producing states like Maharashtra.

However, as soon as these agencies procure tomatoes, they will distribute them to states where prices of the staple vegetable are skyrocketing due to unavailability.
Since last month, tomato prices have registered a significant increase and have touched Rs 150-160 per kg.

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According to the statement issued by the Food Ministry, the procured stock of key vegetables will be distributed at subsidized prices in the Delhi NCR region by Friday.

“The target centers for release (of tomatoes) have been identified on the basis of absolute increase in retail prices in the last one month, where the current prices are above the all-India average,” the food ministry said.

“The southern and western regions are surplus states, supplying other markets depending on the production season. The production season also varies from region to region. The peak harvesting season is from December to February,” it said.

“The cycle of planting and harvesting season and variation across regions are mainly responsible for the seasonality of tomato price. Apart from the normal price seasonality, crop damage due to temporary supply chain disruptions and adverse weather conditions, etc., often lead to a sudden increase in prices. Food Ministry said.

The government also said that heavy rains in the country have added to the challenges in distribution of procured tomatoes in the deprived states.

Data from the Price Monitoring Division under the Department of Consumer Affairs shows that tomato prices have increased significantly this month as compared to the beginning of June. On an average, the price of tomato has increased by Rs 60-100 per kg in the retail markets.

In Delhi, the price of tomato shot up from Rs 20 per kg in early June to Rs 110 per kg last week. Similarly, in three major consuming areas, namely Chennai, Ahmedabad and Kolkata, tomato prices shot up to Rs 117, Rs 100 and Rs 148 per kg, respectively.

These figures indicate a substantial increase in tomato prices within a short span of time, highlighting the prevailing market conditions and the likely factors affecting the supply and demand of tomatoes in these regions.