Indian tomato prices hit lowest level in over a year

Tomato prices in India have crashed to their lowest levels in over a year after hitting record highs in 2023 and early 2024. In key growing states like Maharashtra and Madhya Pradesh, wholesale prices have dropped by over 80% in recent weeks, now at just $0.10 to $0.12 per kilogram. This is far below the production cost of $0.14 to $0.17 per kilogram, leaving farmers with heavy losses.

According to Indian media reports, many growers are dumping tomatoes or feeding them to cattle because transport costs make selling unprofitable. Some farmers skipped planting a second crop after enjoying good prices last year, but now they can’t afford to bring their harvest to market.

The agriculture ministry has announced support under the market intervention scheme to help farmers in Maharashtra, Madhya Pradesh, and Karnataka cover transport costs. However, experts say such schemes offer little relief when prices swing wildly due to tomatoes being perishable.

Former agriculture secretary Siraj Hussain suggested long-term solutions like better cold storage, food processing, and modern technology to extend shelf life. Last year, tomato prices soared to $2.40 per kilogram in July, after poor rains and disease reduced supply in late 2022. That shortage led many farmers to plant more tomatoes, causing the current oversupply and price crash.

source: hindustantimes.com

photo: cnbc.com