Centre slashes retail tomato prices to ₹70 per kg

The central government has directed marketing agencies NAFED and NCCF to sell tomatoes at ₹70 per kg instead of ₹80 to provide relief to consumers.

In its bid to give further relief to consumers, the central government on Wednesday said it has directed its marketing agencies – NAFED and NCCF – to sell tomatoes at ₹70 per kg instead of ₹80.

Consumers will be able to buy tomatoes at the revised rates starting Thursday, a government release said. (PTI)

Consumers will be able to buy tomatoes at the revised rates starting Thursday, a government release said.

The tomatoes procured by National Cooperative Consumers' Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) had been retailed, initially, at ₹90 per kg and then reduced to ₹80 per kg from July 16, 2023, to now ₹70.

Amid a sharp spurt in tomato prices across the country, the agencies -- NCCF and NAFED – had commenced the procurement of tomatoes from mandis in Andhra Pradesh, Karnataka, and Maharashtra for simultaneous disposal in major consumption centers where retail prices have recorded the maximum increase in last one month.

“The retail sale of tomatoes in Delhi-NCR had started from 14th July, 2023. Till 18th July, 2023 a total of 391 MT of tomato had been procured by the two agencies which are being continuously disposed of to the retail consumers in major consumption centres of Delhi-NCR, Rajasthan, UP and Bihar,” said the government release today.

The sharp rise in tomato prices was reported across the country, and is not just limited to a particular region or geography. In key cities, it rose to as high as ₹150-200 per kg.

The periods during July-August and October-November are generally the lean production months for tomatoes.

Tomato is produced almost in all the states in India, though in varying quantities. The southern and western regions of India account for 56-58 percent of total tomato production in the country.

The government attributed the rise in prices to the monsoon season, saying that it added to further challenges related to distribution and increased transit losses.

Tomatoes have a relatively lower shelf life.

Currently, the supplies coming to markets in Gujarat, Madhya Pradesh and some other states are mostly from Maharashtra especially Satara, Narayangaon, and Nashik, which is expected to last till this month end.

Madanapalle (Chittoor) in Andhra Pradesh also has seen continued arrivals in reasonable quantities. The arrivals in Delhi NCR are mainly from Himachal Pradesh and some quantity comes from Kolar in Karnataka. New crop arrivals are expected soon from the Nashik district.

Further, in August, additional supply is expected to come from Narayangaon and Aurangabad belt. Madhya Pradesh arrivals are also expected to start, the government said.

Notably, the rise in tomato and other vegetable prices was reflected in the June retail inflation data.

Bucking the trend, retail inflation in India rose considerably in June to 4.81 percent from 4.31 in May, largely due to a sharp spurt in vegetable prices. Besides vegetables, meat, and fish; eggs; pulses, and products; spices too saw an uptick in June.