Tomato Prices Surge Across India; Here's WHY?

Tomato prices in India have experienced a surge due to heavy rainfall damaging crops in Karnataka, leading to a shortage in supply. The impact of incessant rains has caused prices to skyrocket, with rates jumping from ₹10-20 per kilogram to ₹80-100 per kilogram.

Ajay Kedia, a Mumbai-based commodity market expert and head of Kedia Advisory, explained that this year saw fewer tomatoes being cultivated compared to previous years. Farmers shifted to growing beans as prices surged last year, but the lack of monsoon rains resulted in crop damage and limited supply. The adverse effects of heavy rainfall and extreme heat have contributed to the current tomato shortage.

To ease the burden on underprivileged and middle-class communities, the Tamil Nadu government has initiated the sale of tomatoes at Farm Fresh Outlets (FFOs) throughout the state. The objective is to regulate prices and increase accessibility. The tomatoes will be sold at Rs. 68 per kilogram at FFOs, with plans to potentially lower the price to Rs. 60 per kilogram, as confirmed by Periyakaruppan, the Minister of Tamil Nadu's Co-operation, Food, and Consumer Protection Department.

Similarly, Karnataka has also been affected by heavy rains, causing damage to tomato crops and making transportation challenging. In Bengaluru, tomato prices have reached ₹100 per kilogram. The situation is comparable in other regions, with Kanpur witnessing a steep price hike from ₹40-50 per kilogram to ₹100 per kilogram within a week. Delhi's tomato prices stand at ₹80 per kilogram. This surge in prices is putting financial strain on consumers.

Vendors in Kanpur attribute the price hike to the heavy rains that devastated tomato crops in Karnataka, a major supplier. The upward trend in prices is expected to continue in the coming days, further exacerbating the situation.

The increasing prices of tomatoes and other staple vegetables are being felt in both wholesale and retail markets across the country. Data from the Price Monitoring Division under the Department of Consumer Affairs reveals that average tomato prices have risen from ₹25 to ₹41 per kilogram in retail markets, with some reaching as high as ₹80-113. Wholesale prices for staple vegetables have also seen an average increase of 60-70 percent in June, reflecting the overall trend.