 "Tomatoes image via Shutterstock")
After running high for about a week, tomato prices in the wholesale markets have started dropping, on the back of increased supplies. Compared with about Rs 40 a kg in the past week, prices have come down to Rs 20 a kg in the Delhi wholesale market.
Supply was low in the past week owing to long Diwali holidays, as well as heavy rains in southern India, pushing up prices in most retail markets.
During the Diwali holidays, transporting of goods slows down and labourers stay away from farms, leading to drop in supplies.
According to data from the department of consumer affairs, prices had risen Rs 20-30 a kg in the retail markets between October 1 and November 14.
In Delhi, the retail price had moved up from Rs 39 a kg in end-October to Rs 60 a kg on November 14. In Chennai, prices soared by as much as Rs 40 a kg.
"Supplies dwindled as most of the tomatoes produced in Bengaluru were diverted to meet the demand coming from Chennai, where the crop was damaged due to widespread rains. This led to a drop in supplies to northern India, including Delhi. However, the situation has now improved," said a trader from Delhi's Azadpur wholesale market.
Rajendra Sharma, former chairman of the Azadpur agricultural produce market committee in New Delhi, said increased imports to Pakistan had also pushed up tomato prices, which will now come down. "The retail price of almost all vegetables will now fall as supplies will be good till February."
India's tomato production in 2014-15 crop year was 0.43 million tonnes (mt) less than the production in 2013-14 at 18.3 mt, data from the agricultural department showed.
