Centre further slashes retail tomato prices; to be now sold at Rs 70/kg

New Delhi [India], July 19 : In its bid to give further relief to consumers, the central government on Wednesday said it has directed its marketing agencies – NAFED and NCCF – to sell tomatoes at Rs 70 per kg instead of Rs 80.

Consumers will be able to buy tomatoes at the revised rates starting Thursday, a government release said.

The tomatoes procured by National Cooperative Consumers' Federation of India (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) had been retailed, initially, at Rs 90 per kg and then reduced to Rs 80 per kg from July 16, 2023 to now Rs 70.

Amid a sharp spurt in tomato prices across the country, the agencies NCCF and NAFED – had commenced the procurement of tomato from mandis in Andhra Pradesh, Karnataka and Maharashtra for simultaneous disposal in major consumption centres where retail prices have recorded maximum increase in last one month.

“The retail sale of tomatoes in Delhi-NCR had started from 14th July, 2023. Till 18th July, 2023 a total of 391 MT of tomato had been procured by the two agencies which are being continuously disposed of to the retail consumers in major consumption centres of Delhi-NCR, Rajasthan, UP and Bihar,” said the government release today.

The sharp rise in tomato prices was reported across the country, and is not just limited to a particular region or geography. In key cities, it rose to as high as Rs 150-200 per kg.

The periods during July-August and October-November are generally the lean production months for tomato.

Tomato is produced almost in all the states in India, though in varying quantities. The southern and western regions of India accounts for 56-58 per cent of total tomato production in the country.

The government attributed the rise in prices to the monsoon season, saying that it added to further challenges related to distribution and increased transit losses.

Tomatoes have a relatively lower shelf life.

Currently, the supplies coming to markets in Gujarat, Madhya Pradesh and some other states are mostly from Maharashtra especially Satara, Narayangaon, and Nashik, which is expected to last till this month end.

Madanapalle (Chittoor) in Andhra Pradesh also has seen continued arrivals in reasonable quantities. The arrivals in Delhi NCR are mainly from Himachal Pradesh and some quantity comes from Kolar in Karnataka. New crop arrivals are expected soon from Nashik district.

Further, in August, additional supply is expected to come from Narayangaon and Aurangabad belt. Madhya Pradesh arrivals are also expected to start, the government said.

Notably, the rise in tomato and other vegetable prices was reflected in the June retail inflation data.

Bucking the trend, retail inflation in India rose considerably in June to 4.81 per cent from 4.31 in May, largely due to a sharp spurt in vegetable prices. Besides vegetables, meat and fish; eggs; pulses and products; spices too saw an uptick in June.

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