Tomato prices in India have continued to fall since Ganeshotsav, with current wholesale rates ranging between US$0.12 and US$0.19 per kg at the APMC yard, while retail prices range from US$0.24 to US$0.48 per kg depending on quality. The decline is linked to continuous heavy rainfall in crop-producing regions, which has damaged vegetables and reduced returns for growers.
Farmers report that the current market situation does not cover even transportation costs, as wholesale prices remain well below production levels. Despite the low wholesale prices, retailers are not passing on the benefits to consumers. According to market observers, prices may rise after a fortnight once the rain-damaged crop is cleared from the fields and new sowing is delayed due to the extended monsoon across Maharashtra and neighbouring states.
Last month, tomatoes were trading at US$0.72–0.96 per kg, but prices have since halved. A farmer from Barsi in Solapur, Pandurang Gulve, said: "Falling price of tomatoes due to rain forced us to think about the next crop. We are not even recovering the logistics cost to bring the fruits to the local APMC."
Babasaheb Badade, head of the APMC Vegetable Traders Association, explained: "Chances to get good crops from other states are slim since the tomato-producing areas are badly affected due to the heavy rain. The weather department had earlier predicted the withdrawal of monsoon by mid-September, but is now forecasting an extension. There will be a shortfall of supply in the next couple of weeks, and it will take time for a new harvest."
Consumers report that retail prices remain higher than wholesale, even though supply volumes are intact. Wholesale traders and growers alike are dissatisfied with the situation, as transport costs discourage farmers from sending produce to the market.
Retailer Ashok Sahu noted, "We have to bear the damage cost of tomatoes as the quality these days is not up to the mark." A wholesaler from Vashi APMC added: "The prices are fluctuating every day as the production is hampered in areas like Narayangaon, Junnar, Nashik, Pune, etc. Farmers who invested big money, anticipating good returns, are facing a tough time to square up their production costs. The government should regulate the retail price during the crisis time to benefit the consumers and farmers."
Source: Times of India