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17 Nov 2024

Tomato Prices Decline: What Can Consumers Expect in Coming Months?


The soaring price of tomatoes, which has put a strain on household budgets in recent months, has finally seen a decline. The Department of Consumer Affairs reports that improved supply has helped lower tomato prices by more than 22% over the past month, and further reductions are expected in the near future. 


Rising vegetable prices have pushed food inflation to a 14-month high in October, but the recent drop in tomato prices could offer some relief to consumers.


Prices fall by Rs 15 in a month


According to data from the Department of Consumer Affairs, retail tomato prices have decreased significantly following a reduction in market rates. As of November 14, 2024, the average all-India retail price of tomatoes was recorded at Rs 52.35 per kg, a sharp drop from Rs 67.50 per kg on October 14, 2024. This represents a 22.4% decrease, amounting to a price reduction of about Rs 15 per kg within a month.


Wholesale Prices Plunge by 50%


Government data indicates an even steeper decline in wholesale prices. In Azadpur Mandi, a major agricultural market, the wholesale price of tomatoes dropped nearly 50%, falling from Rs 5,883 per quintal to Rs 2,969 per quintal between October 14 and November 14. Similar price drops were reported in other key markets, such as Pimpalgaon, Madanapalle, and Kolar, as tomato arrivals increased in these regions.


Weather Impact on Tomato Crop and Supply


Despite the overall increase in tomato production, adverse weather conditions affected the crop and contributed to price fluctuations. According to the Department of Agriculture’s preliminary estimate, total tomato production for 2023-24 is projected at 213.20 lakh tonnes, a 4% increase from 204.25 lakh tonnes in 2022-23. 


However, seasonal shifts and weather variations impact the producing areas and yield, influencing prices. Unusually heavy and prolonged rains in Andhra Pradesh and Karnataka led to a price spike in October 2024 as tomato crops were affected in these key production states.


Typically, October and November are primary sowing seasons for tomatoes in major production states, and the arrival of the new crop stabilizes prices. Due to the short duration of tomato cultivation and the ability to harvest multiple times, there is generally a consistent supply of tomatoes in the market. 


Steady supply flow is expected to keep prices stable


Although arrivals have recently decreased in major hubs like Madanapalle and Kolar, fresh supply from states like Maharashtra, Madhya Pradesh, and Gujarat has helped alleviate prices. This steady flow is expected to keep tomato prices stable in the coming weeks, offering some relief from recent high food costs.


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