July 22, 2023
The Indian government has announced that retail prices of tomatoes are expected to fall in the coming days as the supply of new crops from Maharashtra and Madhya Pradesh increases. The soaring prices of tomatoes in recent weeks have been a cause for concern, with the retail price reaching as high as ₹200-250 per kilogram in some regions. However, the government’s efforts to stabilize prices through increased supply and intervention measures are expected to bring relief to consumers.
In response to a question raised by independent member Kartikeya Sharma in the Rajya Sabha, Minister of State for Consumer Affairs, Food, and Public Distribution, Ashwini Kumar Choubey, attributed the surge in prices to various factors. These factors include crop seasonality, the white fly disease outbreak in Kolar, Karnataka, untimely monsoon rains affecting tomato crops in Haryana and Himachal Pradesh, and logistics disruptions due to heavy rains in isolated areas.
Minister Choubey assured that the situation is expected to improve as new tomato crops arrive in the market from key regions such as Nashik, Naryangaon, and Aurangabad in Maharashtra, as well as from Madhya Pradesh. He expressed optimism that the increased supply would incentivize farmers to cultivate more tomatoes, ultimately leading to a stabilization of prices in the coming months.
To make tomatoes more affordable for consumers, the government has taken measures to procure and distribute the vegetable at subsidized rates under the Price Stabilization Fund. The National Cooperative Consumers Federation (NCCF) and the National Agricultural Cooperative Marketing Federation (NAFED) are actively procuring tomatoes from various ‘mandis’ in Andhra Pradesh, Karnataka, and Maharashtra. These procured tomatoes are then made available at affordable prices in major consumption centers, including Delhi-NCR, Bihar, and Rajasthan, among other places.
The effort has already shown promising results, with the average retail price of tomatoes in Delhi declining from ₹150 per kg during the week of July 10-16 to ₹130 per kg on July 18. Similarly, in Punjab, the average retail price dropped to ₹127.70 per kg on the same date.
Furthermore, the Department of Agriculture & Farmers Welfare (DAFW) is implementing the Market Intervention Scheme (MIS) to safeguard growers of perishable agri-horticultural commodities from distress sales during periods of bumper crops. Under this scheme, the Central and State Governments share the losses resulting from falling prices on a 50:50 basis.
However, as of July 18, the DAFW has not received any proposals from State Governments for market intervention to address distress sales of tomatoes.
The government’s proactive measures to stabilize tomato prices are expected to provide relief to consumers grappling with the burden of high vegetable costs. As the new tomato crops from Maharashtra and Madhya Pradesh enter the market, the hope is that supply will meet demand, leading to more reasonable prices and improved accessibility for all consumers across the country.
