Tomato prices spike in North India, Mother Dairy selling at Rs 259/kg

Traders attribute the sudden increase to relentless rains in southern India's primary tomato-growing regions and transportation disruptions in Himachal Pradesh and Uttar Pradesh due to infra damage

Following a brief respite, tomato prices are again on the boil in Delhi and other parts of northern India. Mother Dairy is now selling the kitchen essential vegetable at Rs 259 per kg.

According to consumer data from the Department of Consumer Affairs, between August 1 and 2, tomato prices in the city surged by Rs 23 per kg.

Tomato prices climbed even higher overnight in the hills; in Dharamshala, Himachal Pradesh, it became costlier by Rs 120 per kg and traded at Rs 237 per kg on Wednesday. In Aligarh, Uttar Pradesh, the vegetable became pricier by Rs 110 a kg to Rs 225 a kg in 24 hours.

According to traders, incessant rains in the main tomato-growing belts of southern India and disruption in transport in Himachal Pradesh and UP due to damage to road infrastructure is the reason for this sudden surge.

The price increase in southern states was relatively muted, with rates rising by Rs 11 per kg in Bengaluru; also, there was a decline in prices in some southern markets.

“Tomatoes are not selling for less than Rs 100-150 a kg even in the main growing regions. So naturally, when it reaches the mandis (marketplaces), the rates are further jacked up,” explained Anil Malhotra, former member of Azadpur APMC and chairman of the Vegetable Traders Association.

Malhotra expects prices to remain high until crops from Maharashtra (Sholapur and Nasik) and Madhya Pradesh (Ratlam) hit the market around September 20-25. "We anticipate a price of Rs 30 per kg for tomatoes only after two months, not immediately,” he added.

A senior official from Mother Dairy, which retails vegetables under the Safal brand, stated that the hike in the selling price was due to an increase in the procurement cost over the past two days. “Yesterday, we bought tomatoes for around Rs 240 per kg from the designated mandis and, after adding all the commission and charges, we were compelled to sell them at Rs 259 per kg today at some outlets. However, since we purchased today at a rate which is Rs 40 per kg less, we could see some moderation in prices soon,” the Safal official said.

He said in North India, widespread damage has been reported to tomato crops due to incessant rainfall; the perishability has also gone down.

“Until a few weeks ago, tomatoes that we got could withstand transit of 7-8 days but the new ones are getting spoiled in just 3-4 days,” the official said.

Tomato prices have been on the rise for more than a month now on account of supply disruptions caused due to heavy rainfall in the key producing regions.

With the central government's intervention through sale of tomatoes at a subsidised rate since July 14, retail prices in Delhi had begun softening recently.

According to Azadpur Tomato Association President Ashok Kaushik, "In the past three days, the arrival of tomatoes has reduced as the crop has been damaged in the growing regions because of heavy rainfall.” 

Azadpur mandi saw the arrival of only 15 per cent tomatoes on Wednesday as only six small trucks could get the supplies from Karnataka and Andhra Pradesh, he said, adding this has led to the firming up of prices. He further said that the Azadpur mandi saw only a 15 per cent arrival of tomatoes on Wednesday, with supplies coming in just six small trucks from Karnataka and Andhra Pradesh. However, Kaushik anticipates the supply situation to improve within the next ten days.

India's tomato production is projected to be around 20.62 million tonnes in 2022-23, marginally less than the previous year.