Tomato prices have plummeted to their lowest in over a year in Indian producer states, following record highs in 2023 and 2024. This cycle of volatility is common for perishables.
In Maharashtra and Madhya Pradesh, wholesale prices have dropped over 80% in recent weeks, now at $0.10-$0.12 per kilo, while production costs range from $0.14-$0.17 per kilo, as per a 2022 National Horticulture Board analysis.
The price drop has caused unrest among growers, with many discarding their produce or using it as cattle feed due to the cost of transporting it to markets.
"I grew tomatoes and didn't go for a second crop since the rates were very good last year. The rates began falling in December and now it's untenable to even transport my harvest to the market. We have demanded compensation from the government," stated Santosh Mahle, a farmer from the Vashi Shetkari Sangathana.
In response, the agriculture ministry plans to use its market intervention scheme to support farmers in Maharashtra, Madhya Pradesh, and Karnataka. "In view of the falling prices of tomato in Madhya Pradesh, Maharashtra, and other major producing states, the government of India has decided to implement the transportation component under the MIS scheme in cases where there is a difference in the price of TOP crops (tomato, onion, and potato) between the producing and consuming states," an official stated.
Despite these measures, administrative support is often ineffective during gluts or scarcity. "It is difficult to provide price support for horticulture farmers due to the perishable nature of produce. The solutions are more long-term, such as investments in food processing, cold storage, from farmer producer organizations to agriculture produce market committees and technology to increase shelf life," said Siraj Hussain, former Union agriculture secretary.
In July 2023, tomato prices peaked at $2.40 per kilo, up from $0.36 in April. The roots of this price spiral trace back to late 2022, when poor rains and leaf-curl disease hit yields, shifting demand to onions and potatoes and prompting more tomato cultivation, leading to the current surplus.
Source: Hindustan Times