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  1. Tomato prices soar up to ₹100/kg in southern states despite onset of monsoon; here's why

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Tomato prices soar up to ₹100/kg in southern states despite onset of monsoon; here's why

Upstox

2 min read | Updated on August 10, 2024, 12:52 IST

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SUMMARY

In Tamil Nadu, Karnataka, and Andhra Pradesh, the prices are hovering between ₹90 to ₹100 in the retail market, reports said. In Maharashtra, the rates are in the range of ₹80 to ₹100.

Sluggish monsoon has hit tomato output in peninsular India

Sluggish monsoon has hit tomato output in peninsular India

Prices of tomato, a key kitchen staple, has soared to as high as ₹100 per kg in several southern states despite the onset of monsoon which is vital for kharif plantation.

In Tamil Nadu, Karnataka, and Andhra Pradesh, the prices are hovering between ₹90 to ₹100 in the retail market, reports said. In Maharashtra, the rates are in the range of ₹80 to ₹100.

The surge in prices are attributed mainly to two reasons -- sluggish rainfall in southern India and the heatwave situation in the northern states.

Monsoon loses momentum

While the monsoon made an early onset in peninsular India, it has not translated into sufficient rainfall. According to the India Meteorological Department (IMD), a 20% deficit in rainfall is expected in June as against the long period average (LPA).

This, explain experts, has affected the output of tomato in top producing states like Maharashtra, Andhra Pradesh and Karnataka.

"Due to insufficient rainfall, the sowing of tomato and other kharif crops has been delayed. This will also result in delayed harvesting, thereby adding pressure on the available stock in the retail market. Hence, the prices have went up," Jaideep Patil, a trader based in Navi Mumbai's APMC, told Upstox.

Habib Bagban, who owns arable land in Ahmednagar, said the farmers in the region had increased the tomato plantation by up to four times considering the high prices seen last year. However, the excessive heat during the summer affected the output, he explained, adding that the delayed monsoon has further added to their woes.

Heatwave hits supply from North

The states in northern India that are top producers of tomatoes include Uttar Pradesh, Bihar, Haryana and Himachal Pradesh. These provinces are still reeling under heatwave conditions, as monsoon is yet to make upward progress.

The scorching temperature has adversely affected the output of tomatoes, thereby restricting their pan-India supply.

However, the tomato prices remain relatively lower in the range of ₹40-₹50 in Delhi and adjoining region, as compared to the southern states.

"The supply of tomatoes from the producing states in the north is sufficient to keep the local prices in check till mid-July. However, the supplies are already constrained and cannot address the demand from the southern states," a Delhi-based agriculture economist said.

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Upstox
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