Tomato Price Rise: Centre Directs NAFED, NCCF To Procure Tomato From AP, Karnataka, Maharashtra For Distribution

The stocks of tomatoes will be distributed through retail outlets at discounted prices to consumers in the Delhi-NCR region by Friday, this week, the Department of Consumer Affairs said

Amidst the record spike in tomato prices, the central government on Wednesday directed National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers Federation (NCCF) cooperatives to procure tomatoes from Andhra Pradesh, Karnataka, and Maharashtra for distribution in major consumption centres, where retail prices have recorded the maximum increase in the last one month. 

The stocks of tomatoes will be distributed through retail outlets at discounted prices to the consumers in the Delhi-NCR region by Friday, this week, the Department of Consumer Affairs said in a statement on Wednesday. 

"The targeted centres for release have been identified on the basis of absolute increase in retail prices over the past one month in centres where prevailing prices are above the all-India average. Key consumption centres in states having higher concentrations of the identified centres are further selected for the intervention," the statement said. 

Retail prices of tomatoes have reportedly soared as high as Rs 200 per kg in some parts of the country due to supply disruption caused by heavy rains in the country. 

"The periods during July-August and October-November are generally the lean production months for tomato. July coinciding with monsoon season, adds to further challenges related to distribution and increased transit losses adding to price rise. The cycle of planting and harvesting seasons and variation across regions are primarily responsible for price seasonality in Tomato," the Department of Consumer Affairs noted as the reason behind the tomato price rise. 

Apart from the normal price seasonality, temporary supply chain disruptions, and crop damage due to adverse weather conditions etc. often lead to sudden spikes in prices, the statement added. 

"Prices are anticipated to cool down in the near future, accordingly," the Ministry of Consumer Affairs, Food and Public Distribution noted.

Currently, the supplies coming to markets in Gujarat, Madhya Pradesh and some other states are mostly from Maharashtra especially Satara, Narayangaon, and Nashik, which is expected to last till this month-end, it said.

Madanapalle (Chittoor) in Andhra Pradesh also has continued arrivals in reasonable quantities. The arrivals in Delhi-NCR are mainly from Himachal Pradesh and some quantity comes from Kolar in Karnataka, it added.

The ministry also said the new crop arrivals are expected soon from Nashik district. In August, additional supply is expected to come from the Narayangaon and Aurangabad belt. Madhya Pradesh arrivals are also expected to start.

The ministry also said Tomato is produced almost in all the states in India, though in varying quantities. Maximum production is in southern and western regions of India, contributing 56-58 per cent of all-India production. Southern and Western regions being surplus states, feed to other markets depending on production seasons. The production seasons are also different across regions. The peak harvesting season occurs from December to February.