Tomato prices in the capital underwent a substantial fall — as low as ₹50/kg from ₹200/kg in a week — and a similar reduction was noticed in other key centres of north India after the government intervened with an improvement in supplies. The centre is simultaneously targeting steadily rising onion prices by selling directly to consumers at ₹25 per kg.

Speaking to businessline, Consumer Affairs Secretary Rohit Kumar Singh said: “When we selected cities and towns where rates were relatively higher than other places and sent our trucks, the market received the signal about our determination (to bring down prices). We will intervene till prices are absolutely normal.” Prices are almost normal now and may further come down in the next few days, he added.

The maximum wholesale rate of tomato on Monday was recorded at ₹180/kg in Car Nicobar and the lowest at ₹23/kg in Davangere (Karnataka). But in a number of cities in north India, prices had come down to Rs 40–70/kg in the retail market, with the National Cooperative Consumers’ Federation (NCCF) selling it at ₹40/kg in Delhi.

Retail prices in the National Capital Region (NCR) increased to ₹120/kg in the last week of June within a span of six days, after which the Centre announced on July 12 its plan to sell at lower than market rates.

There were supply issues due to heavy rains in the Hills that disrupted tomatoes from reaching the Delhi market, besides the production fall in Karnataka due to white fly disease. These two factors led to a sudden spurt in prices, after which the government intervened by selling in key parts of the country at subsidised rates that got calibrated according to the prevailing market price.

Onion Prices

Singh said that for the first time, the government has decided to procure 5 lakh tonnes (lt) of Onions, and the simultaneous purchase and sale would ensure both farmers and consumers get the benefit.

“Our strategy is to increase the availability of onions in the domestic market. Though an export duty of 40 per cent has been placed to make it more expensive, farmers are not uncomfortable. The decision to buy an additional 2 lt (of the already purchased 3 lt purchased) will benefit farmers only,” he said.

The Centre has yet to receive demand from any State for onions and will decide the prices after States place their demand, which will be at subsidised rates so that retail prices are controlled.

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