Tomato Prices Expected To Stabilise Soon With Increased Supply

The government has decided against reintroducing subsidized tomatoes, anticipating that prices will stabilize within one to two weeks as supplies from Andhra Pradesh and Karnataka improve. Retail tomato prices in Delhi, which had surged to ₹75 per kg, are expected to decrease soon with better supply from southern states, according to a government official.

Current Tomato Prices Across Major Cities

As of July 12, the retail price of tomatoes in Delhi was ₹75 per kg, down from ₹150 per kg the previous year. In Mumbai, tomatoes were priced at ₹83 per kg, while Kolkata reported a rate of ₹80 per kg. The all-India average retail price stood at ₹65.21 per kg, compared to ₹53.36 per kg last year.

Tomato prices have doubled in Chandigarh's apni mandis, rising from ₹30 per kg on June 21 to ₹60 per kg by July 3. The official noted that potato and onion prices, which also spiked due to supply disruptions, are expected to stabilize soon.

Factors Behind the Price Surge

The consumer affairs ministry official explained that extreme heat followed by excessive rainfall disrupted supplies of tomatoes, potatoes, and onions in Delhi and other cities. This disruption caused a significant spike in prices across key consuming areas.

Currently, Delhi is receiving tomato supplies from Himachal Pradesh and Uttarakhand. The official mentioned that prices would start easing as hybrid tomatoes from Andhra Pradesh and Karnataka reach the national capital.

Future Outlook for Vegetable Prices

The government remains optimistic about price stabilization in the coming weeks if there are no further disruptions due to adverse weather conditions. Heavy rainfall has affected the supply of tomatoes, potatoes, onions, and green vegetables in major consuming areas, leading to price hikes across metro cities.

In Delhi, retail potato prices were ₹40 per kg on July 12, up from ₹25 per kg last year. Onion prices increased to ₹57 per kg from ₹33 per kg during the same period. The official noted that India has 283 lakh tonnes of stored potatoes, sufficient to meet domestic demand despite lower production compared to the previous year.

Onion Price Trends

Onion prices have eased in Maharashtra's wholesale markets and are expected to decline further with the arrival of the new crop in September. The official expressed confidence that onion prices would continue to drop as fresh supplies enter the market.

The government does not plan to reintroduce subsidized tomato sales this year as it did when prices exceeded ₹110 per kg last year. Instead, they expect market forces and improved supply chains to normalize prices soon.

The surge in vegetable prices has been attributed mainly to weather-related disruptions affecting supply chains. However, with better weather conditions and increased supplies from key producing states like Andhra Pradesh and Karnataka, officials expect a return to normalcy shortly.