ANTICIPATED ARRIVAL OF NEW CROP EXPECTED TO LOWER TOMATO PRICES

The recent surge in tomato prices in India, reaching as high as ₹133 per kilogram in some regions, has arisen from a confluence of factors. This includes heavy rains damaging crops in certain areas and the conclusion of the winter crop season, resulting in a shortage of supply. Nevertheless, the Indian government remains optimistic, stating that prices are projected to decrease as a fresh crop arrives from Maharashtra and Madhya Pradesh.

Ashwini Kumar Choubey, the Minister of State for Consumer Affairs, announced that the government has initiated tomato procurement under the Price Stabilisation Fund. By subsidizing prices, tomatoes are being made available to consumers at affordable rates. The National Cooperative Consumers Federation (NCCF) and the National Agricultural Cooperative Marketing Federation (NAFED) cooperatively procure tomatoes from various mandis in states like Andhra Pradesh, Karnataka, and Maharashtra. These tomatoes are then distributed in major consuming centers such as Delhi-NCR, Bihar, and Rajasthan at subsidised prices.

Initially sold at ₹90 per kilogram, the retail price of tomatoes has been reduced to ₹80 per kilogram starting from July 16, and further lowered to ₹70 per kilogram from July 20. The government hopes that the current hike in tomato prices will incentivize farmers to increase tomato cultivation, thus stabilizing prices in the near future.

Choubey also mentioned the Market Intervention Scheme (MIS) implemented by the Department of Agriculture and Farmers Welfare (DAFW). This scheme protects growers of perishable agri-horticultural commodities from distress sales during periods of bumper crops, when prices tend to fall below economic levels. However, Choubey clarified that no proposal for market intervention to address tomato distress sales has been received from State Governments thus far.

To address these challenges, the government is working to improve the tomato supply chain by collaborating with state governments. This includes enhancing transportation infrastructure and providing storage facilities to prevent spoilage. Increased tomato imports have also helped augment the supply, contributing to price reduction efforts.While the government's measures have had some success in controlling tomato prices, they continue to be higher compared to previous months. The government remains vigilant and proactive, continuously monitoring the situation and ready to take further measures if necessary.

The escalating tomato prices have raised concerns among consumers and the government alike. However, with the arrival of the new crop from Maharashtra and Madhya Pradesh, the government expects prices to decline in the near future.

WHY THE TOMATO PRICE IS SOARING SO HIGH?

1) Heavy rains: Heavy rains in some parts of the country have damaged tomato crops, leading to a shortage of supply. In the state of Maharashtra, for example, heavy rains have caused widespread flooding and crop damage. This has led to a sharp decline in the production of tomatoes in the state. 

2)End of the winter crop season: The winter crop season for tomatoes has ended, and the new crop from the Kharif season is not yet available. This means that there is a temporary shortage of tomatoes in the market.

3)Supply chain issues: There have been some supply chain issues in transporting tomatoes from areas where they are grown to regions where they are not. This has led to higher transportation costs and has made it more difficult to get tomatoes to consumers.

4) Seasonal phenomenon: Tomato prices tend to be high in the summer months, and they usually come down in the winter months. This is because tomatoes are a perishable crop and they are more susceptible to damage in the summer heat.

The measures which government can take to check the price of tomatoes:-

1)Procurement under Price Stabilisation Fund: The government has started procuring tomatoes under the Price Stabilisation Fund. This means that the government is buying tomatoes from farmers at a rate that is higher than the market price. The government is then selling these tomatoes to consumers at a subsidized rate.

2) Increased imports: The government has also increased imports of tomatoes. This has helped to increase the supply of tomatoes in the market and has helped to drive down prices.

3) Improvement of supply chain: The government is working with state governments to improve the supply chain for tomatoes. This includes improving the transportation infrastructure and providing storage facilities for tomatoes.

4) The government has also taken other measures to control tomato prices, such as monitoring the market and providing information to consumers about the availability of tomatoes.

The government's measures have had some success in controlling tomato prices. However, prices are still higher than they were a few months ago. The government is expected to continue to monitor the situation and to take additional measures if necessary.The high prices of tomatoes are a concern for consumers and the government. The government has taken some measures to control prices, but they have not been entirely successful. It is likely that prices will continue to be high in the coming weeks, but the government is hopeful that the arrival of the new crop from Maharashtra and Madhya Pradesh will help to bring prices down