As Heavy Rains Hit Supply, Tomato Prices Surge In Many Parts Of India

Retail prices of tomatoes have surged to Rs 70-90/kg in several cities, including Delhi, Kanpur, and Kolkata, due to hot weather and heavy rain, causing a major impact on households.

This marks the sharpest hike in tomato prices so far this year. However, relief is expected soon as fresh harvests from southern states are set to hit the markets.

Photo Credit: PTI

The Union consumer affairs ministry has stated that these incoming supplies should ease prices within days, highlighting the robust expansion of summer sowing of key vegetables, supported by good rains.h

Last month's weather conditions, including a delayed monsoon followed by blistering temperatures and heavy rains, severely disrupted tomato supplies.

Traders noted that the perishability of tomatoes, exacerbated by heat waves, is a major factor in the shortages. Tomatoes tend to become expensive during June and July, which is considered a lean season.

At Mother Dairy-run Safal grocery stores in Delhi and the National Capital Region, tomatoes were selling for Rs 75/kg, according to a report. Additionally, an online quick commerce platform listed tomatoes at Rs 86/kg on Saturday, reported Hindustan Times.

Official data indicated that tomato prices showed a moderation in June compared to a year ago, but the vegetable remained more expensive compared to the previous month. For instance, average consumer prices for tomatoes on July 2 declined by 15%, from Rs 64.5 per kg a year ago to Rs 54.42.

However, compared to a month ago, prices rose sharply by 71%, from Rs 31.74 per kg to Rs 54.42. Rates began soaring even higher since Thursday.

The consumer affairs ministry expressed optimism that prices would fall within a week due to good crop conditions in major tomato-producing areas such as Chittoor in Andhra Pradesh and Kolar in Karnataka.

Additionally, retail prices for onions and potatoes have soared nearly 81% and 57% respectively from a year ago, contributing to high food inflation and concern among central bank policymakers. Adverse weather and lower output last year have kept prices for these essential grocery items elevated.

RBI governor Shaktikanta Das highlighted the impact of food inflation on the economy. He said, "Food inflation is the main factor behind the grudgingly slow pace of disinflation. Recurring and overlapping supply-side shocks continue to play an outsized role in food inflation."

The Rabi or winter-sown onion output declined by 20% to 19 million tonnes this year. Rabi onions typically account for nearly 72% of India's annual supply. Last year, prices for commonly consumed onions in July rocketed to a record Rs 178 per kg in Delhi, an eight-fold increase.