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'No stop-gap solution' as tomato prices soar
Business Standard
|July 05, 2023
Tomato prices have crossed more than 100 per kg in retail markets across India, putting the kitchen budgets of households in a tight squeeze.
The government has said the price rise is temporary and will cool in 15-30 days, but according to trade sources, that might not happen that soon.
Tomato prices in Delhi's Azadpur wholesale market have increased 1,315 per cent between June 2 and July 3, from 451 a quintal to ₹6,381 per quintal. Arrivals have dropped by almost 40 per cent during the same period.
Supplies have dwindled because the crop was damaged in some main production regions: First due to hailstorm in March and April and then a disease in Karnataka. It's not the first time that tomato prices have jumped so sharply.
Tomatoes, onions, and potatoes, which are commonly called TOP, have the sharpest fluctuations in prices in a year.
In March, onion prices dropped so sharply that farmers dumped their produce in open fields. The Centre intervened to help them, but prices are rising and it won't be surprising if they reach new levels in some weeks.
Similar is the case with potatoes. Prices have increased owing to multiple factors but the prime among them is a heat wave in early June and a pest attack on the standing crop in Karnataka, a major producer.
Tomato is a short-duration crop and is grown multiple times in a year in several locations. Besides Karnataka, major production is in Madhya Pradesh, Andhra Pradesh, and Gujarat. These states together comprise almost 48 per cent of India's annual production.
This story is from the July 05, 2023 edition of Business Standard.
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