Govt Cuts Subsidised Tomato's Price To Rs 40 Per Kg, Cooperatives To Sell From August 20

Initially, the Ministry of Consumer Affairs, Food and Public Distribution directed the cooperatives to offer tomatoes at a price of Rs 90 per kg, which was subsequently lowered to Rs 50 per kg.

Notably, since July, the NCCF and the NAFED have been selling tomatoes at discounted rates in Delhi-NCR, Uttar Pradesh, Rajasthan, and Bihar.

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The Center has directed cooperatives National Cooperative Consumers’ Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation (NAFED) to sell tomatoes at a retail price of Rs 40 per kg from August 20, 2023. The decision has been taken in view of the continued decline in tomato prices in the wholesale and retail markets, the Department of Consumer Affairs said. 

Notably, since July, the NCCF and the NAFED have been selling tomatoes at discounted rates in Delhi-NCR, Uttar Pradesh, Rajasthan, and Bihar. This initiative was started after heavy rainfall and other weather-related issues led to a price surge in essential kitchen staples. The government directed the two cooperatives to procure tomatoes for producing states and distribute them at a subsidised rate. 

Initially, the ministry directed the cooperatives to offer tomatoes at a price of Rs 90 per kg, which was subsequently lowered to Rs 50 per kg. The price now has been further reduced to Rs 40 per kg.

Ministry of Consumer Affairs, Food & Public Distribution on Friday also informed that the retail sale of tomatoes in Delhi-NCR had started from July 14, 2023.

 

"Till date, over 15 lakh kg of tomato had been procured by the two agencies which are being continuously disposed of to the retail consumers in major consumption centres in the country," the ministry said. 

 

 

According to a MoneyControl report, Tomato prices are anticipated to drop by early September due to increased supply from Madhya Pradesh, Andhra Pradesh, Uttar Pradesh, and Haryana.

 

According to Sanjay Gupta, CEO of National Commodities Management Services Ltd (NCML) prediction, noted in the report, prices could reach Rs 30 per kg by mid-September as supply pressures build.

The average price per quintal has already fallen from Rs 9,671 to Rs 9,195 between July 14 and August 14, the report said. Adding that after soaring to Rs 250 per kg in mid-July, retail prices now range from Rs 80 to 120 per kg in most cities, benefiting from fresh crops from Maharashtra and Karnataka.