Govt Funds 28 Startups To Combat Fluctuating Tomato Prices

Consumer Affairs Secretary Nidhi Khare announced on Friday that the Tomato Grand Challenge hackathon, launched in June last year, aimed to gather creative solutions across the tomato value chain

The goal is stabilising tomato prices for consumers and providing better returns for farmers

Source : PTI

To address the fluctuations in retail tomato prices, the government has selected and funded 28 innovative ideas, including one that explores the possibility of making wine from tomatoes, as part of a hackathon to improve supply chains and processing capabilities. These initiatives will now receive support to help scale their operations.

Consumer Affairs Secretary Nidhi Khare announced on Friday that the Tomato Grand Challenge (TGC) hackathon, launched in June last year, aimed to gather creative solutions across the tomato value chain. The goal is stabilising tomato prices for consumers and providing better returns for farmers. The Department of Consumer Affairs developed the initiative with the Ministry of Education's Innovation Cell.

“There is a high volatility in tomato prices. Rates increase sharply because of excessive rains, heat spells and pest attacks,” Khare said. She highlighted that tomatoes often experience sudden price hikes—sometimes up to 100 per cent—several times a year. Conversely, prices can also fall sharply, negatively affecting farmers' earnings.

Khare stressed the need to strengthen the tomato supply chain, reduce pre- and post-harvest losses, and increase the level of processing to stabilise prices, which would benefit both consumers and farmers. India produces approximately 20 million tonnes of tomatoes annually.

The TGC hackathon received a total of 1,376 submissions. After an extensive selection process, 423 ideas were shortlisted in the first stage, and 28 were ultimately funded. These ideas were categorised into two groups: (i) students, research scholars, and faculty members, and (ii) industry professionals, Indian startups, and Micro, Small and Medium Enterprises (MSMEs).

Of the 28 funded ideas, 14 have already led to registered patents. Many of these ideas have been tested, and nearly all have been developed into functioning startups. These entrepreneurs will now be trained to pitch their innovations effectively to investors and large corporations.

Looking ahead, Khare stated that the Department of Consumer Affairs will continue to support these startups, connecting them with investors and corporations to help them scale their businesses. She also pointed to India’s success in stabilising milk supply as an example of how similar approaches could be used to manage tomato price volatility.

One of the most innovative ideas among the funded projects includes creating wine from tomatoes, a concept that could diversify the product’s value chain and reduce waste. "We have got good ideas. We will help them scale up to tide over the problem of price volatility," Khare said.

Tomatoes are grown in nearly all Indian states, though production is concentrated in the southern and western regions, which account for almost 60 per cent of the country's total output. Production seasons vary across regions, with the peak harvest occurring from December to February. However, lean months in July-August and October-November coincide with the monsoon season, leading to supply challenges and increasing transit losses, further exacerbating price fluctuations.