Tomato prices rise in Dharmapuri as farmers halt cultivation

Tomato prices in Dharmapuri, a district in the Indian state of Tamil Nadu, have increased after several months of low rates. On Wednesday, retail prices reached Rs 15 per kg (approx. $0.18), and wholesale prices climbed to Rs 20 per kg (approx. $0.24). The price hike is mainly due to reduced tomato supply as many farmers stopped cultivation because of the monsoon.

Tomatoes are grown on around 13,000 acres each year in Dharmapuri, with nearly 4,000 acres usually planted in June. But as the southwest monsoon arrived early, farmers feared damage to crops from excess moisture and delayed or cancelled planting.

Agriculture marketing officials explained that this is a seasonal price change, which happens when production drops during the rainy season.

Over the past six months, wholesale tomato prices stayed between Rs 5 and Rs 7 per kg (approx. $0.06–$0.08), with farmers losing around Rs 1 per kg (approx. $0.01) for cleaning and packaging. Most tomato growers spend about Rs 20,000 per acre (approx. $240), including labour, and were unable to cover their costs during the price slump.

In private wholesale markets like Palacode, which is within Dharmapuri district, traders typically receive about 12,000 tonnes of tomatoes in summer. This year, however, only 3,500 tonnes were supplied, as many farmers abandoned cultivation due to losses. Traders also said they are earning very little, with profits often just Rs 1 or Rs 2 per kg (approx. $0.01–$0.02), making it difficult to continue business.

Farmers noted that tomato prices usually rise and fall twice a year, so the current increase is not unusual. But with the early monsoon, fewer farmers wanted to take the risk of planting and losing crops to bad weather.

Officials added that the demand and supply chain is currently stable, but the situation remains temporary. Production may improve depending on weather conditions and future planting decisions.

source: newindianexpress.com

photo: cnn.com