homeeconomy NewsHow Indian government and states plan to tackle the rising tomato prices

How Indian government and states plan to tackle the rising tomato prices

The Consumer Affairs Ministry is likely to launch a Tomato Grand Challenge, inviting innovative ideas for improving the production, processing and storage of the commodity. Meanwhile, the Tamil Nadu government has decided to sell tomatoes at a cost price in government-run Farm Fresh Outlets (FFOs). Check out in details here.

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By CNBCTV18.com Jul 5, 2023 12:21:59 PM IST (Updated)

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As the Opposition blamed the Narendra Modi-led government for the current rise in prices of tomatoes, the Consumer Affairs Ministry said it will launch a grand challenge, inviting innovative ideas for improving the production, processing and storage of the commodity.

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"We will launch the Tomato Grand Challenge this week (June 20). We will invite innovative ideas, create prototypes, and then scale up as we did in the case of Onion," Consumer Affairs Secretary Rohit Kumar Singh was quoted by news agency ANI as saying.
Check details of the Tomato Grand Challenge here
The purpose of the Tomato Grand Challenge is to come out with a comprehensive strategic solution for reducing the loss while imparting value addition. Singh said, the "Grand Challenge" aims to bring innovative, modular, and cost-effective solutions to develop "technologies for pre-production; primary processing, post-harvest, storage and valorisation of tomato" at the farm, rural and urban levels.
"In the case of tomato, sudden spike or fall in prices can be tackled if there is good storage and processing. Like the buffer, there should be a stabilised mechanism. For this, innovation at the seed level, primary storage, post-harvest and crop information is necessary, Singh said.
The ideas will be invited for four verticals, as per the minister:
> First is developing and popularising improved tomato varieties, production technology or practices suiting the rainy season, dry and humid heat weather conditions, processing, enhanced fruit shelf life, and mechanised harvesting.
> Second is designing and disseminating information systems pertaining to crop planning, market intelligence for farmers, interface platforms for farmers/nurseries/ traders/customer interface, production practices, etc.
> Third is innovative post-harvest treatments and packaging solutions to minimise post-harvest losses during harvesting, handling, and transportation.
Fourth is innovative storage technologies and solutions for longer preservation and so on to reduce panic selling due to perishability.
How your state is tackling tomato price rise
Tamil Nadu
Tomato sale at a cost price of Rs 68 per kilo has been launched in government-run Farm Fresh Outlets (FFOs) across Tamil Nadu as part of efforts to cool prices.
Minister for Cooperation KR Periyakaruppan said that in order to help control the prices, the sale of tomatoes at cost price has been launched in 62 FFOs and three mobile farm fresh outlets. He also appealed to the people to make use of it.
Chennai alone has 27 FFOs and two mobile units and FFOs are operating in regions including Coimbatore, Tiruchirappalli, Madurai, Thoothukudi, Tirunelveli and Thanjavur, the report said.
Periyakaruppan also warned of tough action against those who resort to hoarding in the wake of spiralling tomato prices.
West Bengal
The West Bengal government took cognizance of the issue of tomato price rise and directed its own retailing network, Sufal Bangla, to deliver fair-price vegetables in the city. Sufal Bangla was charging Rs 115 per kg for tomatoes and Rs 240 for green chillies.
Andhra Pradesh
The Andhra Pradesh government said last week its agriculture marketing department is selling tomatoes at Rs 50 per kg at 103 Rythu Bazars located across the state to provide relief to consumers. The prices of tomatoes reached an alarming price of Rs 100 per kg in the state.
"In response to the soaring prices of tomatoes, the Government of Andhra Pradesh has taken proactive steps to make this essential vegetable accessible and affordable for its citizens," the state government said in a statement.
Tomato price hike is "temporary"
As the retail price of tomatoes doubled in a week and shot up to over Rs 100 in some cities across the country, a top government official assured that the "spurt in prices of tomato is a temporary seasonal phenomenon and rates will cool down soon".
"It is a highly perishable commodity. Transportation gets affected in areas that received sudden rains. It is a temporary issue. Prices will cool down soon. It happens every year during this time," Consumer Affairs Secretary Rohit Kumar Singh told news agency PTI.
How tomato prices spiralled
The price of tomato crossed Rs 100 per kg in Bengaluru, while a tomato seller said on Tuesday, "In wholesale, we are getting tomatoes for Rs 60-80 per kg. In retail, people will get it for Rs 90-100." Tomato prices soar up in Chennai and Kanpur too.
Meanwhile, wholesalers in Rajasthan said tomato prices have increased four to five times due to heavy rainfall caused by cyclonic storm Biparjoy followed by the onset of the monsoon season that has destroyed the produce of farmers. "The prices of all vegetables have also increased by one to two times," they said.
According to the data from the Department of Consumer Affairs, the average price of tomato on an all-India basis is Rs 46 per kg on June 27, PTI reported. The modal price is Rs 50 per kg while the maximum price is Rs 122 per kg. Across four metros, the retail price of tomato in Delhi is Rs 60 per kg, Mumbai is Rs 42 per kg, Kolkata is Rs 75 per kg and Chennai is Rs 67 per kg.
High temperatures, lesser supply and heavy rainfall are said to be the main reasons behind the price rise. The prices of other vegetables have also increased significantly.
"With the onset of monsoon, the tomato crop is currently going through a seasonal transition. Rainfall in areas such as Himachal Pradesh and Uttarakhand have impacted the crop and also restricted its supply, resulting in a demand-supply gap," a Mother Dairy spokesperson was quoted as saying as tomato prices at Mother Dairy's Safal stores in Delhi-NCR were doubled to nearly Rs 80 per kg in the last one week.
As per the government data, tomato production is estimated to fall slightly to 20.62 million tonnes in 2022-23 from 20.69 million tonnes in the previous year, PTI reported.
(With inputs from PTI)

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