Tomato price rise: Tomato woes are back, with the staple now retailing at an average price of Rs 70-80 per kg, compared to the earlier Rs 30-35 per kg, in several parts of India. In multiple cities, prices have surged up to Rs 90 per kilogram, likely impacting millions of households. Several factors have contributed to this price hike, including unfavourable weather conditions affecting crop yields, disruptions in the supply chain, and increased transportation costs. These challenges have collectively driven up the cost of tomatoes, straining household budgets across the nation.
In Delhi, retail prices of tomatoes have sharply risen to approximately Rs 70-80 per kg. Mother Dairy, a prominent supplier in the region through its 'Safal' stores, is selling tomatoes at Rs 75 per kg, while local vendors are pricing them similarly at Rs 70-80 per kg. Online platforms like Otipy and Blinkit are also listing tomatoes at Rs 80 per kg. This surge in retail prices is attributed to a significant increase in wholesale rates, which are now ranging between Rs 50-60 per kg.
Why tomato prices are rising?
As per the reports, tomato prices began increasing from June itself following adverse weather and heatwave conditions in several parts of India including in Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu and Kerala. This led to extensively damaged crops across large parts of India and impacted the supply and production of tomatoes. According to a reports, high temperatures in key growing regions such as Karnataka and Andhra Pradesh led to a 35 per cent reduction in tomatoes.
The surge in tomato prices is primarily attributed to heavy rainfall. The heavy rains have damaged road networks, which has disrupted the supply chain and reduced the availability of tomatoes in various markets. Additionally, increased transport-related wastage further exacerbates the scarcity, driving prices higher. These weather-related disruptions have had a significant impact on the tomato supply chain, leading to the current price spikes seen in retail markets.
Farmers are saying that continuous heavy rains have led to flooding in fields, causing significant damage to vegetable crops. This has resulted in reduced arrivals of vegetables in the markets. The decreased supply has subsequently driven prices up rapidly. Traders are anticipating that onion prices will remain high until October due to these supply constraints and the impact of recent weather conditions on agricultural yields.
Last year, the Kharif crop was severely affected by heavy rains and flooding in northern cultivation areas, as well as fungal diseases in southern regions. These adverse conditions resulted in a significant shortage of tomatoes, causing prices to soar to over Rs 350 per kg in certain retail markets. The high prices prompted actions such as McDonald's temporarily discontinuing the use of tomatoes in some of its Indian outlets. This situation underscores the vulnerability of agricultural production to weather-related challenges and its impact on both availability and pricing in the market.
Veg thali gets dearer by 10 pc in June on onion, tomato price jump
The average cost of a vegetarian thali became costlier by 10 per cent in June due to the jump in onion, potato, and tomato prices, as per the Crisil Market Intelligence and Analysis' monthly "Roti Rice Rate" report.
The cost of veg thali, which comprises roti, vegetables (onions, tomatoes and potatoes), rice, dal, curd and salad, increased 10 per cent to Rs 29.4 per plate in June from Rs 26.7 in the year-ago period, and was higher when compared to Rs 27.8 in May 2024. The overall hike in vegetarian thali prices is attributed to a 30 per cent increase in prices of tomato, 59 per cent in potato and 46 per cent in onion.
(With agencies input)
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