Seeing Red: Why tomato prices are likely to hit Rs 300 per kg

At an all-time high, tomatoes cost between Rs 120-160 per kilogramme in Mumbai’s retail markets. In various states of the country, tomatoes are being offered at a significant premium price of Rs 250 per kg over their customary prices of Rs 20–30. Millions of homes across the nation have been severely impacted by the sudden and jarring increase in tomato prices, which has forced them to either tighten their budgets or reduce their consumption. The Centre on Friday began selling tomatoes at discounted prices in retail markets in Delhi-NCR, Lucknow, Patna, and other selected major cities throughout the nation in an effort to lessen this load on the average person, according to NDTV. Let’s take a closer look. Also read: Tomatoes more expensive than petrol: How viruses have destroyed the crop In a first, the Centre sells tomatoes To address the rising costs of the kitchen staple, the union government today began selling tomatoes at a discounted rate of Rs 90 per kilos in the National Capital and its neighbouring NCR region, Lucknow, Patna, and other selected major cities throughout the nation. However, at discounted prices, each person can only purchase two kilos of tomatoes per head. Fresh tomatoes from mandis in the important tomato-growing regions of Andhra Pradesh, Karnataka, and Maharashtra arrived in the nation’s capital overnight. According to an official release, tomatoes will be sold in Noida at the National Cooperative Consumers Federation (NCCF) office at Rajnigandha Chowk as well as by way of mobile vans in Greater Noida and other places. During the weekend, NCCF will begin the auction in additional cities including Lucknow, Kanpur, and Jaipur, they added. NCCF in Delhi began the sale in all 11 districts using 20 mobile vans and five venues. NCCF chairman Vishal Singh told NDTV, around 17,000 kilos of tomatoes will be sold overall on the first day. He added that the subsidised rates will be set at two kilos for each consumer. The NCCF expects to sell 20,000 kilogrammes of tomatoes on Saturday, and as the market ramps up, that number will rise to 40,000 kilogrammes per day. Also read: Rising prices: Why India is in tomato trouble again Centre buys tomatoes from AP, Karnataka & Maharashtra The National Agricultural Cooperative Marketing Federation (NAFED) and the NCCF were instructed by the Department of Consumer Affairs to obtain tomatoes as soon as possible from markets in Andhra Pradesh, Karnataka, and Maharashtra for distribution in significant consumption centres where retail prices have seen the largest increase in the past month, according to The Hindu. The ministry noted in the statement that the arrival of the fresh crop is anticipated soon and that prices are anticipated to drop soon. A government release said, “The stocks of tomato will be distributed through retail outlets at discounted prices to the consumers in the Delhi-NCR region by Friday." [caption id=“attachment_12867632” align=“alignnone” width=“640”]  Tomato prices have soared across India with retail price crossing Rs 100/kg in many parts of Delhi. PTI[/caption] According to NDTV, NCCF managing director Anice Joseph Chandra has said, “We have fixed the price at Rs 90 per kilo, while the procurement rate is Rs 120-130 per kilogramme. The losses will be absorbed by the central government. Two weeks ago, the Centre also announced a “Tomato Grand Challenge Hackathon” in the National Capital, requesting the public to suggest innovative ideas to reduce tomato prices. A similar exercise was done when onion prices had increased some time ago, as per The Hindu. Also read: Tomatoes at Rs 100 per kg: What’s behind the price hike? Soaring prices of the kitchen staple Due to the severe weather, tomato prices have increased by more than 300 per cent in India, according to News18. According to experts in agriculture, the price is going to increase even further in the following weeks and could go as high as Rs 300 per kilogramme. National Commodities Management Services Limited (NCML) CEO Sanjay Gupta told MoneyControl that the issue of price increases would persist for a while. He even said that it is impossible to start a new plantation when it is raining. “Prices will increase in the next weeks. Before we see prices settle, it will be at least two months, he added. From Rs 40 per kilogramme in June to an average of Rs 100 per kilogramme in the first week of July, prices have skyrocketed. Due to the significant rains, which affected the country’s supply from various regions, prices rose to an average of Rs 200 kilogramme. Also read: Not just tomatoes: Why are vegetable prices seeing a rise? The reason for the price hike Many states are experiencing heavy downpours, which caused damage to or washing away of household essentials, and even manufacturing and transportation problems. Major cultivators of tomatoes are Andhra Pradesh, Karnataka, Madhya Pradesh, Gujarat, Maharashtra, West Bengal, Odisha, Bihar, Chhattisgarh, Telangana, Uttar Pradesh, Tamil Nadu, and Haryana. These states account for 91 per cent of the nation’s overall production, according to reports from the Ministry of Agriculture. Only the south and some of the northeast are used for the current tomato supply. There are other factors contributing to the poor supply, besides the weather. The tomato is a crop with a short growing season that is highly heat- and virus-sensitive. Due to an early heat wave that devastated huge portions of India between February and March, some of the crop was destroyed. Additionally, two distinct viruses harmed the crops in Maharashtra and Karnataka. Farmers losing faith in receiving fair pricing for their produced products is another factor contributing to decreased productivity, according to News18. The monsoon season, according to the government, was to blame for the steep price increase since it created additional distribution issues and increased transit losses. The shelf life of tomatoes is generally shorter. The months of July through August and October through November are typically the slowest months for tomato production. “Southern and Western regions, being surplus states, feed to other markets depending on production seasons. The production seasons are also different across regions. The peak harvesting season occurs from December to February,” the food ministry had said, according to NDTV. “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,” it added. With inputs from agencies