Reining in prices. Nafed, NCCF asked to sell tomatoes at discounted rates in bid to cool prices

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After initially ignoring the tomato price hike, the Centre on Wednesday swung into action, directing the cooperatives, Nafed and NCCF, to buy the vegetable in the producing states and distribute them in the consuming centres at reasonable rates. Prices are anticipated to cool down once arrivals increase, the government said.

The Department of Consumer Affairs has directed the National Agricultural Cooperative Marketing Federation (NAFED) and the National Cooperative Consumers’ Federation (NCCF) to immediately procure tomatoes from mandis (agriculture market yards) in Andhra Pradesh, Karnataka and Maharashtra, and simultaneously distribute the same in the major consumption centres, where retail prices have risen sharply in the last one month.

“Tomato stocks will be distributed through retail outlets at discounted prices to consumers in the Delhi-NCR region by Friday (July 14),” the Consumer Affairs Ministry said in a statement. Tomato prices have risen to Rs 160-170/kg in NCR.

The centres identified for release have recorded an increase in retail prices over the past one month, and prevailing prices in these centres is above the all-India average. Key consumption centres in states with a higher concentration of the identified centres have been selected for the intervention, the statement said.

Also read: Code red. Tomato-nomics — Behind the kitchen staple’s soaring prices

Though tomato is produced in almost all the states, 56-58 per cent is contributed by the southern and western regions. The country’s tomato production is pegged at 20.62 million tonnes (mt) for the 2022-23 crop year (July-June), against 20.69 mt in the previous year, the Agriculture Ministry said on June 26, releasing the first estimate of horticulture crops.

The southern and western regions being surplus states, the feed to other markets depends on production seasons, which varies across regions. The peak harvesting season (December to February) provides the maximum quantity in a year, while July-August and October-November are generally considered the off-season for tomato.

The monsoon in July adds todistribution challenges and increased transit losses, adding to the price rise, the Ministry said. However, prices this year are exceptionally higher than that in the same month in the past.

The cycle of planting and harvesting seasons, and variation across regions, are primarily responsible for price seasonality in tomato. Apart from normal price seasonality, temporary supply chain disruptions and crop damage due to adverse weather conditions often lead to a sudden spike in prices, it added.

Also read: Tomato prices soar to ₹120/kg from ₹20/kg last week

Currently, supplies to markets in Gujarat, Madhya Pradesh and some other states are mostly from Maharashtra, especially Satara, Narayangaon, and Nashik, which is expected to continue until July-end. Madanapalle (Chittoor) in Andhra Pradesh also has continued arrivals in reasonable quantities. Arrivals in Delhi-NCR are mainly from Himachal Pradesh and some quantity from Kolar in Karnataka.

New crop arrivals are expected soon from Nashik district. Further, additional supplies are expected from the Narayangaon and Aurangabad belt in August. Arrivals in Madhya Pradesh are also expected to commence.

“We appreciate the initiative of the government to address the soaring prices of tomatoes. As a player in the farm-to-table industry, we see this as an encouraging development that further motivates us to continue our efforts in providing farm-fresh fruits and vegetables to our customers. It reinforces the importance of fostering strong connections with farmers and promoting sustainable sourcing practices,” said Varun Khurana, founder and CEO of Otipy, a B2C platform, mainly of agri produce.

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