Tomato Price Spike Triggers As Centre Turns South For New Stock

Recent weather conditions, including hot temperatures and heavy rains, have led to a significant rise in retail tomato prices, reaching ₹70-90 per kg in cities like Delhi, Kanpur, and Kolkata. This surge, the highest so far this year, is putting pressure on household budgets across the country. However, the Union consumer affairs ministry has assured […]

Tomato Price Surge: Impact of Weather and Supply Chain Disruptions
by Dishti Tandon - July 7, 2024, 8:10 am

Recent weather conditions, including hot temperatures and heavy rains, have led to a significant rise in retail tomato prices, reaching ₹70-90 per kg in cities like Delhi, Kanpur, and Kolkata. This surge, the highest so far this year, is putting pressure on household budgets across the country.

However, the Union consumer affairs ministry has assured that prices are expected to stabilize soon with the arrival of fresh harvests from southern states. The ministry highlighted robust summer sowing of key vegetables, supported by favorable rainfall, which is anticipated to improve market conditions.

Last month, delayed monsoons and extreme weather patterns disrupted tomato supplies, exacerbated by their perishable nature during heatwaves. Typically, prices for tomatoes rise during the lean season of June and July.

Currently, tomatoes are predominantly sourced from Himachal Pradesh, as stated by Ashok Kaushik, president of the Tomato Traders’ Association at Azadpur wholesale market in Delhi. He attributed previous supply disruptions to heat-related spoilage, driving up prices.

According to official data, while tomato prices in June showed a decline compared to last year, they surged significantly from the previous month, reflecting current market dynamics. Prices are expected to decrease within a week as new crops from major producing areas like Chittoor (Andhra Pradesh) and Kolar (Karnataka) enter the market.

Anil Malhotra from the Azadpur agricultural produce marketing committee cautioned that monsoon fluctuations could impact vegetable prices in the coming weeks. Meanwhile, retail prices for onions and potatoes have also risen sharply from last year, contributing to elevated food inflation concerns.

The Reserve Bank of India (RBI) has noted that persistent food inflation is influencing the overall pace of disinflation, with adverse weather conditions and lower output from last year continuing to affect staple food prices.

While tomato prices are currently high due to weather-related supply disruptions, upcoming harvests are expected to alleviate price pressures in the near term, offering relief to consumers and policymakers alike.