Delayed monsoon, high temperature, low production, heavy rainfall, reduced supply from neighbouring states, all are to blame
Why have the prices of the humble tomato shot up and created a hue and cry across India? There are several reasons for this — delayed monsoons, high temperatures, low production, heavy rainfall, reduced supply from neighbouring states and recommendations from the Dalwai Committee.
But before we talk about factors that affect produce seasonally, it is important to understand the ecosystem in which farmers operate.
Farmers are forced to sell their produce at a low MRP to private traders, according to the Dalwai Committee — an 8-member inter-ministerial committee headed by Ashok Dalwai.
The report said since cooperative institutions and agencies of the government do not show interest in purchasing the tomato crop, a farmer is forced to sell his produce to private players who dominate 58 per cent of the market.
Moreover, since the tomato is perishable and has to be sold within a very short period farmers tend to sell it as soon as possible to the nearest available trader.
The report had also urged strengthening the supply chain for tomatoes. For this, Operation Greens was launched in the Union Budget 2018-19. It had an outlay of Rs 500 crore to promote Farmer Producers Organizations (FPOs), agri-logistics, processing facilities and professional management. But its effect was not visible.
Even though the tomato crop is easily perishable, issues like cold chain, modern pack houses and pooling points have not been given much attention.
Additionally, there is no way for farmers to get advance guidance from members of central and state governments and agricultural universities regarding crops like tomatoes in every season.
Apart from operating in this ecosystem, farmers also deal with seasonal issues. This year, late onset of the southwest monsoon and unseasonal flooding in Andhra Pradesh (which produces 20 per cent of tomatoes) and Karnataka, apart from other southern states, reduced production drastically.
Due to crop failure, the retail prices of tomatoes increased immediately.
Moreover, the leaf curl virus (LCV) which can infect over 30 different kinds of plants has affected the tomato crop this year as well. It can cause devastating losses of up to 100 per cent in the yield of tomatoes.
Both field and glasshouse grown tomatoes are susceptible. Some key districts in Karnataka have also been affected by the White Fly disease. On June 27, 2023, the MRP of tomatoes reached Rs 122/kg.
The cost of growing tomatoes is Rs 2-3 lakh/acre and this time they had to sell to traders at Rs 10/kg. So essentially, farmers are not even able to cover the cost of production.
According to Lalramdinpui Renthlei, joint director of the Price Monitoring Division at the Department of Consumer Affairs, tomato prices will become normal in the next 10-15 days, till the new crop arrives. But till then, it is uncertain how farmers will recover their growing costs and mounting losses.
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