Tomato prices double on overseas demand

The inflation plaguing household kitchens is showing no signs of subsiding. An increased demand for tomato in the neighbouring countries despite lower production back home has led to a rise in tomato prices by up to 100 per cent compared with this time last year.

The wholesale prices of tomato are hovering around Rs 20-25 a kg in major markets of north and east India while the same was selling for Rs 12-14 a kg last year.

The retail prices have even breached Rs 40 a kg in various markets in north India. The main reason for this is considered to be the upward trend in the international demand despite the rising prices.

Kanpur Tomato Merchants Association (KTMA) member Ramesh Aggrawal told Business Standard that this year, the productivity has been low due to unfavourable climate and heavy rains last month, while domestic demand is still high, fuelling the prices.

“The demand this year has risen by about 12 per cent according to an estimate and the exports have also increased,” he added. The exporters in Pune and other parts of Maharashtra are procuring the harvest directly from the farmers, leading to a tight supply in the open markets.

Maharashtra, Himachal Pradesh and Madhya Pradesh are the major producers of tomato in the country. The harvest in Pakistan and Bangladesh has suffered this year due to adverse climate and India has emerged as the main supplier of tomato in the region this year.

“The exporters buy the harvest directly from the farmers and traders, while the wholesalers and retailers are left with little stock, resulting in high domestic prices,” adds Aggrawal. The harvest from Madhya Pradesh is expected to arrive by next week. Aggrawal further demands prohibition of exports by the government.

The exporters are procuring 250-300 tonnes of tomato everyday from the regional mandis. Last year, the price of tomato at this time of the year was between Rs 145 and Rs 180 a kg.

The harvest in Ratlam, Madhya Pradesh has started and is expected to bring a marginal drop in the prices. “If the government does not prohibit the export, the prices are bound to rise further,” added Aggrawal.