Government to 'look into' rise in tomato prices

The government today said it will look into the spiralling prices of tomatoes, but made it clear that its exports are unlikely to impact domestic prices.

"Let me have a look at it," said Rahul Khullar, Commerce Secretary, when asked whether tomato exports would also be banned like onion. "Tomato export is allowed under the Open General Licence (OGL). But the percentage is very small. Even the domestic production is mostly consumed within the local growing area. But it is not the same as onion," Khullar said in the presence of Commerce and Industry Minister Anand Sharma.

Onion export is about 1.8 million tonnes against the total domestic production of 12 million tonnes; whereas tomato exports were only 100,000 tonne in relation to the total production of 12 million tonnes.

 

Tomato prices have shot up to Rs 40 per kg in retail markets. It was sold at Rs 15-20 in the second week of this month, said traders. Some traders attributed the price rise to exports to Pakistan.

On price increase in other vegetables like garlic and whether there was a cartel, Sharma said, “There have been speculative hoardings. The state authorities will have to act firmly ... We will not allow it.”