Tomato Prices Soar to ₹70-90 a Kg Amidst Heatwave and Heavy Rain

In a shocking turn of events, the retail prices of tomatoes have skyrocketed to ₹70-90 a kg in several cities, including Delhi, Kanpur, and Kolkata, marking the sharpest rise so far this year. The sudden surge in prices has left households reeling, with the average consumer price of tomatoes in Delhi and the National Capital Region reaching a staggering ₹75 a kg.

The unusual combination of hot weather and heavy rain has been cited as the primary reason for the price hike. According to traders, the delayed monsoon and blistering temperatures, followed by heavy rains, have disrupted supplies, making it challenging for farmers to maintain a steady supply. Additionally, the perishable nature of tomatoes, exacerbated by heatwaves, has worsened the shortage.

Tomatoes are typically more expensive during June and July, a lean season, but the current prices have surpassed expectations. At Mother Dairy-run Safal grocery stores, tomatoes were selling for ₹75 a kg, while an online quick commerce platform was offering them for ₹86 a kg on Saturday.

Ashok Kaushik, president of the Tomato Traders’ Association at Azadpur wholesale market in Delhi, attributed the price hike to the recent heatwave, which affected supplies and made it difficult for farmers to make a profit. “Farmers were not able to make a profit, and the produce was getting spoilt very fast due to the heat. Those supplies have ended, and currently, tomatoes are coming only from Himachal Pradesh,” he said.

Interestingly, tomato rates showed a moderation in June compared to the previous year, but the vegetable was still costlier than the previous month. According to official data, the average consumer price of tomatoes on July 2 declined by 15% from ₹64.5 a kg a year ago to ₹54.42. However, compared to the previous month, the price rose a sharp 71% from ₹31.74 a kg to ₹54.42 a kg. The prices continued to soar even higher since Thursday.

However, relief is on the horizon, as the consumer affairs ministry has announced that good crop conditions in major tomato-producing areas such as Chittoor in Andhra Pradesh and Kolar in Karnataka will lead to a fall in prices within a week. “In Kolar, picking of tomatoes has started, and it will hit the market within a few days from now,” a statement said.

Anil Malhotra, a member of the Azadpur agricultural produce marketing committee, cautioned that the monsoon tends to affect the prices of vegetables, and consumers might see a spike in prices of several vegetables in the next couple of weeks.

The soaring prices of tomatoes, onions, and potatoes have contributed to high food inflation, keeping central bank policymakers on the edge. RBI governor Shaktikanta Das had earlier stated that food inflation is the main factor behind the slow pace of disinflation, with recurring and overlapping supply-side shocks continuing to play a significant role.

The rabi or winter-sown onion output has declined by 20% to 19 million tonne this year, making it challenging to meet the demand. Last year, prices of onions rocketed to a record ₹178 a kg in Delhi, an eightfold jump. The situation is likely to remain challenging in the coming weeks, with prices of basic grocery items expected to remain elevated due to adverse weather and lower output last year.

Historical Context:

Tomato prices have been a concern in India for several years, with fluctuations in supply and demand affecting prices. In 2019, tomato prices skyrocketed to ₹100 a kg in some parts of the country due to a combination of factors such as heatwaves, floods, and pests. In 2020, the COVID-19 pandemic led to a shortage of tomatoes, causing prices to rise to ₹80 a kg in some areas. In recent years, India has faced frequent heatwaves and droughts, which have impacted tomato production and led to price fluctuations.

Summary in Bullet Points:

• Tomato prices have soared to ₹70-90 a kg in several cities, including Delhi, Kanpur, and Kolkata, due to a combination of hot weather and heavy rain. • The unusual weather pattern has disrupted supplies, making it challenging for farmers to maintain a steady supply. • The perishable nature of tomatoes has worsened the shortage, with farmers unable to make a profit due to the heatwave. • The consumer affairs ministry has announced that good crop conditions in major tomato-producing areas will lead to a fall in prices within a week. • The prices of tomatoes, onions, and potatoes have contributed to high food inflation, keeping central bank policymakers on the edge. • The rabi or winter-sown onion output has declined by 20% to 19 million tonne this year, making it challenging to meet demand. • Prices of basic grocery items are expected to remain elevated due to adverse weather and lower output last year. • The RBI governor has stated that food inflation is the main factor behind the slow pace of disinflation, with recurring and overlapping supply-side shocks continuing to play a significant role. • The situation is likely to remain challenging in the coming weeks, with prices of basic grocery items expected to remain elevated.