A kilogram of tomatoes now costs more than Rs 100, up from Rs 10-20 per kg, in various parts of the country. The prices are skyrocketing in Delhi, where tomatoes are being sold at Rs 800. Meanwhile, in parts of Bengaluru, Tamil Nadu, Uttar Pradesh, and Hyderabad, tomatoes are being sold at over Rs 100. Earlier this year, fluctuating onion and potato prices had created tensions among consumers and farmers in parts of Maharashtra.
The database maintained by the Price Monitoring Division under the Department of Consumer Affairs reveals that on average, the price of a kilogram of tomatoes rose from Rs 25 to Rs 41 in retail markets. Maximum prices of tomatoes in retail markets were in the range of Rs 80-113. The rates of staple vegetables were in tune with the rise in their prices in wholesale markets, which jumped about 60-70 percent on average in June.
Current rates of tomatoes in different cities
| City | Tomato price/kg |
| Bengaluru | Rs 80-100 |
| Noide | Over Rs 100 |
| Lucknow | Rs 60-80 |
| Bhopal | Rs 90-100 |
| Delhi | Rs 100 |
In view of the trend, should buyers expect their vegetable baskets to get costlier in the coming days? Why have the prices of tomatoes skyrocketed recently and what is next?
Why is there an uptick in tomato prices?
According to reports, delayed monsoons, high temperatures, and low production might be behind the increase in prices of tomatoes recently. Heavy rains too have contributed to the significant spike in prices.
"Tomato is being sold at a price of Rs 80 Kg. The rate has suddenly shot up in the past two-three days. This sudden increase in price is due to heavy rainfall. Rain has destroyed tomatoes," Mohammad Raju, a resident of Delhi, was quoted by ANI as saying.
Meanwhile, Ashok Ganor, a tomato trader from Delhi's Azadpur wholesale market, said the supply of tomatoes from neighbouring states like Haryana and Uttar Pradesh has reduced. "The tomato plants that were on the ground have been damaged during the recent rainfall. Only the plants that grow vertically with the support of wires were saved...We are now getting tomatoes from Bengaluru," Ganor was quoted by Economic Times as saying.
At the same time, another report said that the reason behind this is the dip in supply due to heatwaves in tomato-growing areas, apart from heavy rainfall. Due to rain, significant disruption in the supply of tomatoes was also reported in Karnataka's tomato-growing districts of Kolar, Chikkaballapur, Ramanagara, Chitradurga, and Bengaluru Rural.
Ajay Kedia, a Mumbai-based commodity market expert and head of Kedia Advisory said, "This year, for a variety of reasons, fewer tomatoes were sown than in prior years. As the price of beans surged last year, many farmers switched to growing beans this year. However, a lack of monsoon rains has caused the crops to dry out and wilt. The limited supply of vegetables, particularly tomatoes are due to crop damage caused by heavy rainfall and extreme heat."
Besides, The Hindu reported that the sowing of tomatoes this year was less as most of the farmers shifted to planting beans. "Many farmers in Kolar shifted to beans this year, as the price of beans skyrocketed last year...The tomato crop in the district may be only 30 percent of the usual,” reported the publication citing Anji Reddy, a tomato farmer from Kolar.
The other reason for less production is said to be the less usage of pesticides and fertilisers by farmers" as the rates were not remunerative".
Tomato prices also skyrocketed in Karnataka and its capital city Bengaluru as incessant rains damaged the crop and made transportation difficult. "Earlier, the price of Tomato was Rs 30 per kg, after that I bought it for Rs 50 per kg and now it has become Rs 100. Price is going to go up further and we're helpless, we have to buy," said Suraj Gaur, a resident of Bengaluru, was quoted by ANI as saying.
Prices to increase further?
Vegetable vendors said the prices soared in just 10 days and are likely to increase further. A trader in Kanpur told ANI that the prices of tomatoes can rise up to Rs 150 per kg in the coming days.
"Price rise is because of rain. Tomatoes are coming from Bengaluru. Within 10 days, it will increase further. Every year during this month tomato prices usually increase," Lakshmi Devi, a vegetable seller at a Kanpur market, said.
However, Economic Times reported that it is not necessary that the high prices will continue in the coming weeks. It quoted Ganor as saying that the prices "can come down as harvest from many new pockets will begin soon". He, however, maintained that if it continues to rain heavily in Himachal Pradesh and other growing areas, then the prices may remain firm.
Meanwhile, Arvind Sanger, Managing Partner, Geosphere Capital Management, pointed out that the "real issue for India is going to be — if the monsoons are off to a bad start, is inflation going to reappear? and if inflation is going to reappear, is the market too sanguine about the rate cycle about the inflation outlook? and therefore, could you see the RBI (Reserve Bank of India) going back to raising rates again?"
What's next?
The price rise is expected to impact the prices on the food menu of eateries and restaurants.
Moreover, sowing, which has been delayed by a week or two in many parts of the country, has picked the pace because the farmers were anticipating decent rainfall.
Mahesh Palawat, VP-Meteorology & Climate Change, Skymet Weather Services, told CNBC-TV18. "...rainfall will pick up after the first half of June over many parts of the country. Despite the delayed onset of monsoon, monsoon has progressed very well in the last two-three days and covered most of the country and now rain will continue, so sowing will help."
On the issue of crop damage, he said, "We do not expect any crop damage in the next 15-20 days and water which is essential for the crops to sustain will be available to farmers."
What about other commodities?
Except for onions and potatoes, most other vegetables are being sold at a higher price than usual. Prices of a kg of beans are in the range of Rs 120-140, some varieties of carrots are being sold at Rs 100, and capsicum per Kg has crossed the Rs 80 mark. Meanwhile, the cost of eggs has also shot up — an egg is being sold in the range of Rs 7-8, up from Rs 5-6.
(With inputs from News 18 and agencies)
First Published: Jun 27, 2023 1:44 PM IST
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