Govt directs Nafed, NCCF to procure tomato from AP, Karnataka, Maharashtra

The Centre on Wednesday directed cooperatives Nafed and NCCF to procure tomatoes from Andhra Pradesh, Karnataka and Maharashtra for distribution in major consumption centres, where retail prices have recorded maximum increase in the last one month.

The stocks of tomato will be distributed through retail outlets at discounted prices to the consumers in Delhi-NCR region from July 14, the Consumer Affairs Ministry said in a statement.

Retail prices of tomatoes have soared up to Rs 200 per kg in several parts of the country due to supply disruption caused by heavy rains in the country.

National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers Federation (NCCF) will undertake the procurement of tomatoes.

According to the Ministry, the targeted centres for release of tomatoes have been identified on the basis of absolute increase in retail prices over the past one month in centres where prevailing prices are above the all-India average.

Key consumption centres in states having higher concentration of the identified centres will be further selected for the intervention, it said.

The ministry mentioned that the periods during July-August and October-November are generally the lean production months for tomatoes.

"July coinciding with the monsoon season, adds to challenges related to distribution and increased transit losses adding to price rise," it said.

Currently, the supplies coming to markets in Gujarat, Madhya Pradesh and some other states are mostly from Maharashtra especially Satara, Narayangaon, and Nashik, which is expected to last till this month-end, it said.

Madanapalle (Chittoor) in Andhra Pradesh also has continued arrivals in reasonable quantities. The arrivals in Delhi-NCR are mainly from Himachal Pradesh and some quantity comes from Kolar in Karnataka, it added.

The ministry said the new crop arrivals are expected soon from Nashik district.

Furthermore, in August, additional supply is expected to come from the Narayangaon and Aurangabad belt. Madhya Pradesh arrivals are also expected to start.

"Prices are anticipated to cool down in the near future, accordingly," the ministry noted.

Tomato is produced almost in all the states in India, though in varying quantities. Maximum production is in southern and western regions of India, contributing 56-58 per cent of all-India production.

Southern and Western regions being surplus states, feed to other markets depending on production seasons. The production seasons are also different across regions. The peak harvesting season occurs from December to February.

The cycle of planting and harvesting seasons and variation across regions are primarily responsible for price seasonality in tomatoes, it said.

Apart from the normal price seasonality, temporary supply chain disruptions and crop damage due to adverse weather conditions etc. often lead to sudden spikes in prices, it added.