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Published: June 28, 2023
Updated: June 28, 2023

Food Inflation Surges: Tomato Prices to Remain High for Another 20-25 Days, say FPOs

Tomato prices have witnessed a significant surge in recent weeks, rising from Rs 10 to 15 per kilogram to Rs 80 to 120 per kilogram at retail rates. Farmer Producer Organisations (FPOs) have cautioned that consumers can expect these high prices to persist for the next 20 to 25 days, until the arrival of fresh tomato harvest in the markets. The FPOs believe that the current rainfall conditions will benefit the upcoming tomato crops, potentially encouraging more farmers to cultivate tomatoes and eventually increasing the supply. However, concerns regarding El Nino conditions remain.

Delayed Monsoons and Heavy Rainfall:

The steep increase in tomato prices can be attributed to delayed monsoons followed by heavy rainfall. This situation has adversely affected tomato crops and led to reduced supply, resulting in elevated retail prices. Several cities, including Bengaluru, Delhi, Chennai, Hyderabad, and Kanpur, have experienced the impact of these high prices.

Expectations of Improved Supply and Increased Cultivation:

Farmer bodies are hopeful that the next batch of tomato crops will benefit from the current rainfall situation and lead to an eventual increase in supply. The high prices may incentivize more farmers to cultivate tomatoes, which could help alleviate the supply shortage. However, the potential impact of El Nino conditions on future harvests remains a concern.

Price Variations and Wholesale Rates:

Tomato prices vary depending on locality, with residents of posh areas paying significantly more than others. Retail prices have surged from Rs 10 to 15 per kilogram to Rs 80 to 120 per kilogram, while wholesale rates have also increased from Rs 1 to 3 per kilogram to Rs 55-60 per kilogram.

Supply Decline and Insufficient Wholesale Price Reduction:

The supply of tomatoes to wholesale vegetable markets has reportedly declined by approximately 25 percent, according to APMC heads from Karnataka and Maharashtra. Although wholesale prices may slightly decrease on days with higher supply, the reduction is not sufficient to bring down retail prices significantly.

Seasonal Price Fluctuations and Consumer Affairs Ministry's Data:

It is important to note that tomato prices, along with several other vegetables, typically increase during the months of June and July due to changes in weather patterns. The Consumer Affairs Ministry's data indicates that tomato prices have reached Rs 113 per kilogram in Ernakulam, Kerala, and Rs 99 per kilogram in Etawah, Uttar Pradesh.

Consumers should brace themselves for continued high tomato prices for the next 20 to 25 days, as forecasted by Farmer Producer Organisations. The delayed monsoons, heavy rainfall, and supply shortage have contributed to the price surge. However, the arrival of fresh tomato harvests, coupled with potential increased cultivation, is expected to gradually normalise prices. Consumers are advised to monitor the market and explore alternatives during this period of inflationary pressure.