Tomato Prices Likely To Drop Soon With Increased Supply From Andhra, Karnataka

The report mentions that the price of tomatoes in New Delhi has risen to Rs 75 per kg, but there is a possibility of easing if heavy rainfall does not disrupt supply chains further

The retail price of tomatoes, which surged to Rs 75 per kg in the national capital, is anticipated to decline in the upcoming weeks as supplies from southern states improve, according to a government official, reported news agency PTI. The report also mentioned that prices of potatoes and onions, which also rose sharply due to supply disruptions, are expected to normalise soon.

"Prices of tomato, potato and onion are ruling high in Delhi and some other cities. Extreme heat followed by spells of excess rainfall disrupted supplies, causing a spike in prices in consuming areas," the consumer affairs ministry official told PTI.

He mentioned that the price of tomatoes in New Delhi has risen to Rs 75 per kg, but there is a possibility of easing if heavy rainfall does not disrupt supply chains further. According to ministry data, the retail price of tomatoes in Delhi was Rs 75/kg on July 12, down from Rs 150/kg a year ago. In Mumbai, the price was Rs 83/kg, while Kolkata reported it at Rs 80/kg. The average retail price of tomatoes across India stood at Rs 65.21/kg on July 12, compared to Rs 53.36/kg the previous year.

At present, Delhi is receiving tomato supplies primarily from Himachal Pradesh and Uttarakhand. The official noted that prices are expected to decrease once hybrid tomatoes from Andhra Pradesh and Karnataka arrive in the national capital.

The government has decided against reintroducing subsidised tomato sales, a measure implemented last year when prices soared above Rs 110 per kg. The official expressed confidence that prices would normalise within 1-2 weeks as supplies improve from Andhra Pradesh and Karnataka.

Regarding potatoes, the official highlighted India's storage capacity of 283 lakh tonnes, which is adequate to meet domestic demand despite lower production than the previous year. Onion prices, which have eased in Maharashtra's wholesale markets, are anticipated to decline further with the arrival of the new crop in September.

Heavy rainfall has disrupted the supply of tomatoes, potatoes, onions, and green vegetables in vital consuming areas, resulting in price hikes across metropolitan cities. In Delhi, the retail price of potatoes was Rs 40/kg on July 12, up from Rs 25/kg last year, while onion prices increased to Rs 57/kg from Rs 33/kg.