(MENAFN- Live Mint) The government will start selling tomatoes at a subsidized rate of ₹65 per kilogramme from today to provide consumers with some relief from the high prices of the kitchen staple amid the festive season, according to a senior government official.
The move aims to stabilize tomato prices, which have surged to an average of ₹100 per kilogramme and even more in some regions.
The subsidized tomatoes will be available at the National Cooperative Consumers Federation of India Ltd's (NCCF) vans in Delhi, Noida and Gurugram.
Union consumer affairs secretary Nidhi Khare will launch the scheme, which will be extended to more cities like in 2023 when tomato prices touched ₹250 per kg.
The government's intervention comes amid concerns over high food inflation, which rose to 5.66% in August from 5.42% in July. The prices of tomatoes, onions and potatoes, essential food items for Indian households, significantly impact the cost of a home-cooked meal.
Also Read: Festive season spurs consumer spending in smaller towns
According to a 4 October report by rating agency Crisil, the cost of a home-cooked vegetarian thali surged 11% year-on-year (y-o-y) in September, driven by rising vegetable prices.
Vegetable prices continued to fluctuate in September, with onions and potatoes experiencing significant increases. Onion prices surged by 53%, and potato prices rose by 50% year-on-year due to lower supplies.
This is the second time the government has intervened by selling discounted tomatoes. The Centre launched a similar initiative on 29 July when tomato prices soared to ₹80-100 per kg. At that time, tomatoes were sold at ₹60 per kg .
In 2023, about 60 tonnes of tomatoes, including 10 tonnes imported from Nepal, were sold at cheaper rates through the NCCF.
Food inflation rose to 9.36% in June, 8.69% in May, and 8.70% in April.
Also Read: August inflation: What CPI data tells us beyond the base effect, in charts
Subsidized onions The government is also selling subsidized onions at ₹35 per kg through the vans of the NCCF and NAFED across the country.
The government has a buffer stock of 4.7 lakh tonnes. From this stock, it is releasing onions in wholesale markets to control the rise in the prices of this essential food item.
In 2023, onions were purchased from farmers at ₹17-18 per kg. This year, the procurement price has increased to ₹26-27 per kg.
Recently, Khare told Mint that the onion buffer serves two purposes-it supports farmers by providing a stable procurement price and benefits consumers when subsidized onions are released into the market.
Also read: Government to rope in railways to rein-in sky high onion prices
As onion prices soared to ₹90 per kg, the government began selling subsidized onions at ₹25 per kg in 19 cities through its cooperative agencies, starting in August 2023.
The subsidized tomatoes, which will be available at various locations across Delhi, including Krishi Bhawan, CGO Complex, Lodhi Colony, Hauz Khas, Parliament Street and the INA Market, among others, are priced based on average retail prices collected from 550 centres nationwide.
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