Tomato Prices Plunge 22% In A Month After October Surge As Supply Strengthens


(MENAFN- Live Mint) New Delhi: After prolonged rains in India's southern states pushed tomato prices up last month, the all-India average price has plunged over 22% as supply was revived and climatic conditions became more favourable for the crop.

As on 14 November, the countrywide average price of tomato was ₹52.35 per kg compared with ₹67.50 per kg on 14 October, the consumer affairs Ministry said on Sunday, marking a relief from the country's food-led inflation over the past weeks.

India's retail inflation went beyond the Reserve bank of India's (RBI) tolerance band for the first time since August 2023 to 6.2% in November this year, primarily due to the rise in food prices. The RBI's tolerance band for inflation is 2-6%.

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In August last year and November this year, inflation peaked as vegetable prices rose on supply constraints after adverse climatic conditions during the summer and monsoon affected crop yields.

Supply tensions were eased by seasonal arrivals from pockets of Maharashtra, Gujarat, and Madhya Pradesh, along with arrivals in major tomato centres in Madanapalle in Andhra Padesh and Kolar in Karnataka, the consumer affairs ministry said.

The ministry said tomato prices are“on the decline” along with the fall in mandi prices. As tomato supply constraints were resolved due to better crop yields this month, prices fell in mandis across the country.

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In Azadpur mandi in Delhi, the modal prices declined by almost 50%, from ₹5,883 per quintal to ₹2,969 per quintal with the increase in tomato arrivals, the ministry said. Similar declines in mandi prices have been reported from benchmark markets such as Pimpalgaon (Maharashtra), Madanapalle and Kolar.

Despite a 4% increase in total annual tomato production in FY24 from FY23, minor impediments such as logistical delays can have a significant impact on tomato prices as the commodity is highly perishable. Additionally, adverse climate such as heatwaves and higher-than-normal rainfall can affect tomato yields as the fruit is very susceptible to weather, the ministry said, adding that such phenomena occurred in October this year due to excessive and prolonged rainfall in Andhra Pradesh and Karnataka.

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October and November are the main sowing months in major producing states, and tomatoes are available in markets all year due to the short duration for cultivation of the crop and multiple picking of the fruits, the ministry said.

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Live Mint

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