Department of Consumer Affairs Initiates Tomato Procurement to Stabilize Retail Prices
New Delhi, July 12, 2023 – In a bid to combat the rising retail prices of tomatoes, the Department of Consumer Affairs has directed the National Agricultural Cooperative Marketing Federation (NAFED) and the National Cooperative Consumers Federation (NCCF) to promptly procure tomatoes from Mandis (wholesale markets) in Andhra Pradesh, Karnataka, and Maharashtra. The acquired tomato stocks will be simultaneously distributed at discounted prices through retail outlets to consumers in major consumption centers, with a particular focus on the Delhi-NCR region. The distribution is scheduled to commence by the end of this week.
The selection of target centers for tomato release was based on the substantial increase in retail prices observed over the past month in areas where the prevailing prices surpass the national average. Furthermore, the intervention will concentrate on key consumption centers in states with a higher concentration of the identified areas.
Tomato cultivation is widespread across various states in India, albeit in varying quantities. Southern and western regions contribute the majority share, accounting for approximately 56%-58% of the nation’s total tomato production. As surplus states, these regions supply tomatoes to other markets based on production seasons, which vary across regions. The peak harvesting period typically spans from December to February, while July-August and October-November generally experience lean production months for tomatoes. Challenges associated with distribution and increased transit losses during the monsoon season in July further contribute to price fluctuations. The planting and harvesting cycle, as well as regional disparities, primarily drive the seasonal price variations of tomatoes. Additionally, temporary disruptions in the supply chain and crop damage resulting from adverse weather conditions can cause sudden spikes in prices.
Currently, the majority of tomato supplies reaching markets in Gujarat, Madhya Pradesh, and other states originate from Maharashtra, particularly from the regions of Satara, Narayangaon, and Nashik, with these supplies expected to last until the end of this month. Reasonable quantities of tomatoes continue to arrive in Madanapalle (Chittoor), Andhra Pradesh. In the Delhi-NCR region, the arrivals are primarily sourced from Himachal Pradesh, with a smaller quantity coming from Kolar, Karnataka.
New crop arrivals from Nashik district are expected soon, and additional supplies from the Narayangaon and Aurangabad belt are anticipated in August. Furthermore, Madhya Pradesh’s tomato arrivals are also set to commence. These factors are expected to contribute to a cooling down of tomato prices in the near future.
The Department of Consumer Affairs’ proactive measures to procure tomatoes from multiple states and distribute them at discounted prices aim to alleviate the burden of escalating retail prices, providing relief to consumers across major consumption centers, particularly in the Delhi-NCR region.
