Tomato Production: Relief for common man soon? Tomato prices expected to come down in coming months

Tomato yields are poised to witness an upswing, with the central government projecting an increase from 2,23,000 MT in July to 5,44,000 MT in August across major producer states. This surge is expected to bring about a much-needed drop in tomato prices, providing relief to consumers. A senior official from the Ministry of Consumer Affairs, Food and Public Distribution told ET, “As production escalates, particularly in prime cultivation areas like Himachal Pradesh, we foresee a cooling of prices.”

Himachal Pradesh is a major supplier of tomatoes to the northern markets including the national capital region. The state is expected to see an increase in harvest from2,000 MT in July to 30,000 MT in August – hence the anticipation of relief for consumers. Other states such as Karnataka, Maharashtra, Andhra Pradesh, Tamil Nadu, Telangana, and Madhya Pradesh are also likely to see a significant increase in production in August and the coming months of September and October. Production estimates indicate a rise to 9,56,000 MT in September and a substantial 13,33,000 MT in October.
Excessive rains and floods in northern and northwestern regions during July led to field inundation and crop damage, impacting tomato supply and causing retail prices to surge beyond Rs 200 in Delhi’s market. Himachal Pradesh’s tomato arrivals in July plummeted to 1505 MT compared to the previous year’s 10875 MT in July 2022.

Elaborating on the situation, the official told ET, “An area damage of 7800 hectares out of the total sown area of 14500 hectares of kharif tomatoes in Himachal Pradesh resulted in reduced production.”
A recent report by CRISIL states that the cost of a vegetarian thali spiked by 28% on a monthly basis due to elevated tomato prices. The report highlighted, “Of the overall rise in thali costs, 25% can be solely attributed to the surging tomato prices, which soared by 233% from Rs 33 per kg in June to Rs 110 per kg in July.”
To curb the escalating tomato prices, the central government issued directives to the National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers Federation (NCCF) to acquire tomatoes from mandis in Andhra Pradesh, Karnataka, and Maharashtra, subsequently distributing them in major consumption hubs that experienced the most significant price hikes. Despite these efforts, limited supply has led to renewed price increases after a brief respite.
Tomatoes are cultivated across nearly all Indian states, albeit in varying quantities. The southern and western regions of India contribute a substantial 56%-58% of the country’s tomato production. These surplus regions cater to additional markets based on production seasons, which differ across regions. The peak harvesting period typically spans from December to February.