Indian govt will now buy tomatoes directly from farmers

Sources indicated that the Horticulture department is in talks with the Ministry of Consumer Affairs, Food & Public Distribution to chalk out further details which will involve procurement of tomatoes in areas of higher supply for sale in areas with relative shortage to even out prices. For tomatoes, onions and potatoes, freight charges for farmers are already subsidised up to 50% by the Ministry of Food Processing Industries' Operation Greens scheme.

As per data from the National Horticulture Board, the average wholesale price of tomatoes has dropped to Rs 30 per kg while the average retail price has fallen to Rs 15.8 per kg. The data from the Consumer Affairs Ministry indicated that the pan-India average wholesale prices of tomatoes have fallen 63.3% from August to September and 18.4% year-on-year, while retail prices have fallen 61% from August to September.

In August, the government sold discounted tomatoes via several cooperatives after retail prices had crossed Rs 250 per kg in several parts of the country. However, lower consumption, price intervention by the government and a rise in crop yields plunged retail prices to as low as Rs 3 per kg in September.