The department of Consumer Affairs takes action to stabilize Tomato prices in Delhi-NCR

In response to the significant surge in tomato prices over the past month, the Department of Consumer Affairs has issued a directive to the National Agricultural Cooperative Marketing Federation (NAFED) and the National Cooperative Consumers Federation (NCCF). They have been instructed to promptly procure tomatoes from Mandis in Andhra Pradesh, Karnataka, and Maharashtra. The acquired stocks will be simultaneously distributed to major consumption centers in Delhi-NCR, where retail prices have experienced the highest increase.

By the end of this week, retail outlets in the Delhi-NCR region will offer tomatoes at discounted prices to consumers. The selection of targeted centers for the release of these stocks is based on the absolute increase in retail prices compared to the All-India average. Additionally, centers with higher concentrations of these identified locations have been chosen for the intervention.

India produces tomatoes in various states, with the southern and western regions being the primary contributors, accounting for 56%-58% of the country’s total production. As surplus states, they supply tomatoes to other markets depending on the production seasons, which vary across regions. The peak harvesting season occurs from December to February, while July-August and October-November are typically lean production months for tomatoes.

The challenges related to distribution and increased transit losses during the monsoon season in July further contribute to price fluctuations. Price seasonality in tomatoes is primarily driven by the cycle of planting and harvesting seasons, as well as regional variations. Furthermore, temporary disruptions in the supply chain and crop damage caused by adverse weather conditions can lead to sudden spikes in prices.

Anticipated new crop arrivals are expected soon from Nashik district, with additional supply projected from the Narayangaon and Aurangabad belt in August. Madhya Pradesh arrivals are also expected to commence. Consequently, prices are expected to cool down in the near future, providing relief to consumers.