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Tomato Prices Surge to Rs 90 per Kilogram, Impacting Households Nationwide

Tomato prices have soared to Rs 90 per kilogram across multiple cities in India, significantly affecting household budgets 

08-07-2024
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Tomato prices have soared to Rs 90 per kilogram in various cities across India, causing concern for millions of households. This significant price hike has been reported in major metropolitan areas, including Delhi-NCR and Mumbai, according to The Economic Times.

Several factors have contributed to the surge in prices. Severe heatwave conditions in key states such as Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu, and Kerala have disrupted the supply and production of tomatoes. The high temperatures in Karnataka and Andhra Pradesh, crucial tomato-growing regions, led to a 35% decrease in tomato arrivals, as noted by a CRISIL report.

Additionally, heavy rains in Himachal Pradesh have damaged roads, further limiting the supply to major consumption centers, as reported by The Economic Times last week.

As of July 7, the average retail price of tomatoes had risen to Rs 59.87 per kilogram, up from Rs 35 a month ago, marking an increase of over 70%, according to the Consumer Affairs Ministry's price monitoring division. On digital platforms like Amazon Fresh, Swiggy, and Zepto, tomato prices are hovering around Rs 80-90 in many parts of the country.

By July 5, average tomato prices across India had reached Rs 59.88 per kilogram, continuing an upward trend from May, according to the Centre for Economic Data and Analysis (CEDA). In North India, tomatoes are retailing around Rs 50 per kilogram, while in the North East, West, and South, prices are Rs 71, Rs 60.5, and Rs 60 respectively.

Vegetable prices typically rise during the monsoon months due to rain affecting harvesting, plucking, and packaging. Last year, heavy rainfall and flash floods pushed tomato prices over Rs 350 per kilogram in some markets.

The cost of preparing a home-cooked vegetarian thali increased by 10% in June due to sharp rises in the prices of tomatoes, onions, and potatoes, according to a CRISIL report. Tomato prices increased by 30%, onion prices by 46%, and potato prices by 59% on an annual basis.

Food prices, which are historically volatile, now constitute nearly half of the overall consumer price basket. Although inflation dropped to 4.75% in May, it remains a challenge for the Reserve Bank of India (RBI), which aims to reduce inflation to its 4% target amid rising food prices.

RBI Governor Shaktikanta Das warned on June 7 that the exceptionally hot summer and low reservoir levels might further stress the summer crop of vegetables and fruits.

Food inflation increased by 8.69% year-on-year in May, slightly down from 8.70% in April. Food prices have consistently risen at an annual rate exceeding 8% since November 2023. Wholesale inflation hit a 15-month high due to rising food article prices.

In May, vegetable inflation was 32.42%, up from 23.60% the previous month. Onion inflation was at 58.05%, while potato inflation was 64.05%. Pulses inflation rose to 21.95% in May.

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