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Are tomatoes making you see red? What's behind the rising cost?
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  • Are tomatoes making you see red? What's behind the rising cost?

Are tomatoes making you see red? What's behind the rising cost?

FP Explainers • July 18, 2024, 16:30:34 IST
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Markets across India are seeing tomato prices skyrocketing from Rs 10–20 per kilogramme to Rs 80–100 per kilogramme. Unfavourable meteorological conditions, damage to road networks and disruptions in supply chains, waterlogging in farms due to heavy rains and increased transportation costs are some of the reasons for the price hike

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Are tomatoes making you see red? What's behind the rising cost?
Labourers pack tomatoes at a vegetable marker, in Bhuntar of Kullu district, Friday, July 12, 2024. PTI

Rising tomato prices to unprecedented levels in several cities across India are once again pinching the pockets of consumers.

A significant portion of their weekly budget is being spent on vegetables.

Markets across the nation saw tomato prices skyrocketing from Rs 10–20 per kilogramme to a price of Rs 80–100 per kilogramme.

Here’s the reason behind the rising prices of the staple crop:

Soaring prices of tomatoes

If reports are to be believed, tomatoes, a staple crop in Indian households, are now more than Rs 100 per kilogramme in many areas.

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In Delhi and Noida, the prices have shot up to Rs 140 per kilo, while in Chennai, tomatoes are being sold at Rs 120 per kilo, according to Republic World.

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In Kolkata, the vegetable has been selling between Rs 90 and Rs 100 per kilo, as per Hindustan Times.

In Mumbai, the prices are Rs 100 per kilo, while tomatoes are priced at Rs 70 per kilo in Chandigarh.

The all-India modal price, a type of average, of tomatoes on Wednesday rose to Rs 80 a kilo from Rs 60 per kilo a week ago, a jump of 33 per cent, according to official data.

A few Delhi residents have voiced their dissatisfaction with the escalating costs in both local markets and online retail platforms.

A local resident from Laxmi Nagar was quoted by Republic World, “Just a few days back, we bought tomatoes for Rs 28 per kilo, but now it is selling for Rs 90 per kilo online and in the local market. Vegetables have become costlier.”

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The increasing financial strain on consumers is shown by a recent poll carried out by the community social media site, LocalCircles. According to the survey, six out of 10 participants said they were spending at least 50 per cent more on veggies each week than they had in prior months.

Tomatoes being sold at Azadpur Mandi, in New Delhi, Monday, July 15, 2024. PTI

Approximately 71 per cent of consumers who participated in the poll acknowledged paying at least Rs 50 per kilogramme for tomatoes, and 18 per cent said they paid more than Rs 100.

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Well, this isn’t the first time tomato prices have soared.

Due to low production, a shortage of supply, and delayed monsoons in some areas, prices last year around June exceeded Rs 100 per kilogramme in many Indian towns.

The reason behind the hike

Unfavourable meteorological conditions in several states, including Maharashtra, Tamil Nadu, Karnataka, and Andhra Pradesh, are the primary cause of the price increase, as per Times Now.

There has been a notable decrease in both the availability and production of tomatoes as a result of the massive damage caused by these conditions.

Heavy rainfall has additionally led to rising prices.

For example, the incessant rains in Muradabad, whose tomatoes are exported to Uttar Pradesh, Uttarakhand, Delhi NCR, and Haryana, have ruined the staple crop in the fields due to waterlogging. To make room for new cultivation, the farmers in the area are uprooting their crops as a result, explained Indian Express.

Tomato harvesting had begun in Kolar, Karnataka, and the produce was expected to reach the markets in a few days, but rain has made supplies limited, as per Hindustan Times.

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“Heavy rains have slowed harvesting and supplies. The harvesting is not yet complete,” said A Vijayalakhmi, an official of the Kolar agricultural produce market committee. Kolar, he told the outlet, is the only major supplier for most states during July and August.

Transporting tomatoes to key markets has become challenging due to damage to road networks and disruptions in supply chains caused by excessive rain, as per Times Now.

A tomato vendor waits for customers at a wholesale vegetable market, in Kolkata, Tuesday, July 16, 2024. PTI

This disruption has further decreased tomato supply and raised costs, along with increased transportation-related waste.

Notably, many states, including Haryana, Punjab, Delhi, Rajasthan, and Maharashtra, sell local tomatoes. Tomatoes, the primary cash crop in the Solan district, are prized for their great quality and command a high price in the market.

The tomato season begins in June in Himachal Pradesh’s Solan when the crop from irrigated areas starts reaching the market and lasts until November.

Chances of relief

Small Vegetable Sellers’ Association president Mohammad Idrish told The Indian Express, “Because vegetables are coming from hilly region and other states, rates have increased almost three to four times due to rain there.”

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“At least till the time rain is there, there doesn’t seem any relief in sight in the vegetables and fruit prices. Vegetables like tomatoes are coming from hills, Nashik and other cities like Bangalore, where it is heavily raining,” he added.

The consumer affairs ministry recently stated that because of favourable crop conditions in the major tomato-producing regions of Chittoor, Andhra Pradesh, and Kolar, Karnataka, prices of tomatoes should drop within a week, as per HT.

Prices of other veggies

In many cities, the cost of vegetables has skyrocketed.

The price for ladies’ fingers has touched Rs 80 per kilo, which was around Rs 30 per kilo a month ago.

Bottle gourd and pumpkin in Tricity are sold between Rs 60-80 per kilo, which were being sold for Rs 30 per kilo and Rs 20 per kilo a month ago, respectively, according to Indian Express.

The price of cauliflower has jumped to Rs 100 per kilo from Rs 40 per kilo a month ago.

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Similarly, capsicum, which is now sold for Rs 120 per kilo, a month ago was sold for Rs 60 per kilo.

While one kilo of ginger is now costing Rs 250 per kilo, a jump from Rs 80 per kilo a month ago, garlic’s price is Rs 160 per kilo.

Onion, too, has become expensive. It is now being sold for Rs 60 per kilo, when the price a month ago was Rs 20 per kilo.

Food inflation

Food commodities drove consumer inflation in June, which surged to a four-month high of 5.08 per cent from the previous year.

The Reserve Bank of India has fewer options to lower key interest rates since food inflation has been slippery, even if core inflation, which does not include volatile fuel and food, has dropped to 3.1 per cent.

“Food inflation is the main factor behind the grudgingly slow pace of disinflation. Recurring and overlapping supply-side shocks continue to play an outsized role in food inflation,” RBI governor Shaktikanta Das said last month.

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June saw a sharp increase in food inflation to 9.36 per cent, primarily due to increases in vegetables (up 29.32 per cent), pulses (up 16.07 per cent), and cereals (8.75 per cent).

With inputs from agencies

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India Inflation
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