Centre announces plan to control spiraling tomato prices
In view of the prices of tomatoes spiraling across the country after breaching the Rs. 100 per kg-mark, the Centre on Wednesday announced steps to control the prices. The Department of Consumer Affairs has directed the National Agricultural Cooperative Marketing Federation and the National Cooperative Consumers Federation to supply tomatoes from Andhra Pradesh, Karnataka, and Maharashtra to regions that saw the biggest price hike.
Why does this story matter?
Last month, the price of tomatoes doubled across the country within a few days. Its supply was disrupted due to prolonged heatwave conditions and delayed rainfall, which resulted in low production. To add salt to the wound, the prices of other kitchen staples such as onion, green chili, coriander leaves, and cumin also shot up, raising concerns for millions of households amid inflationary pressure.
Tomatoes to be sold at discounted prices from Friday
The department announced that tomatoes will be sold at a discounted price at retail outlets in the Delhi-National Capital Region (NCR) by Friday. It said the areas where tomatoes will be distributed have been identified based on the absolute jump in retail prices over the past month and the scale of consumption. The government said the prices are expected to normalize within 15-30 days.
Tomato production lean during some months
The Department of Consumer Affairs added that the production of tomatoes is lower in the months of July-August and October-November. "July coinciding with the monsoon season, adds to challenges related to distribution and increased transit losses adding to price rise," it said. A sharp decline in the prices of onions and tomatoes in March prompted farmers to dump their produce.
India is world's second-largest producer of tomatoes
Notably, India is the world's second-largest producer of tomatoes, as per Zee Business. The top tomato-producing states include Madhya Pradesh, which accounts for 14.63% of the country's total tomato production; Andhra Pradesh (10.92%); Karnataka (10.23%); Tamil Nadu (7.34%); and Odisha (7.06%). Gujarat (6.87%), West Bengal (6.33%), Chhattisgarh (5.66%), Maharashtra (5.66%), and Bihar (4.68%) are also on the list.
Price hike also reported in states with high production
Surprisingly, the price rise has also been reported in the top tomato-producing states. Tomato prices reached Rs. 160 per kg in Madhya Pradesh's Raisen, the state's highest tomato-producing district. The wholesale price of tomatoes in Andhra Pradesh and Karnataka was Rs. 9,000-12,000 per quintal depending on quality. Apart from tomatoes, the price of onions and potatoes—the three abbreviated together as TOP—is also rising.