The Indian government has taken a major step to reduce the sharp increase in tomato prices by selling them at a lower price of ₹65 per kilogram. Starting from Monday, tomatoes will be available at this reduced rate in Delhi and nearby cities through the retail outlets of the National Cooperative Consumers’ Federation of India (NCCF) and Safal. This decision is aimed at helping consumers who are struggling with skyrocketing prices, as tomatoes have been sold for nearly ₹100 per kilogram in recent weeks. This move comes as a relief to consumers who have been struggling with high prices for essential vegetables.
Over the past few weeks, tomato prices have shot up across major cities. Retail prices, which were around ₹40-50 per kg two weeks ago, have now increased to ₹80-90 per kg. The rise in prices has been largely due to heavy rains in key tomato-producing states like Karnataka and Maharashtra, which disrupted supply chains. This shortage in supply, coupled with an increase in demand, led to a sudden spike in prices. Traders in Delhi’s largest vegetable market, Azadpur mandi, mentioned that wholesale prices have jumped from ₹25 per kg to around ₹70 per kg in just two weeks.
A representative from the consumer affairs department mentioned that some sellers are exploiting the increased demand, particularly during festive times, to significantly raise prices. The difference between wholesale and retail prices has grown large, and consumers are facing the brunt of it.”
To manage the situation, the government has decided to use the Price Stabilisation Fund to bring down the cost of tomatoes in the retail market. By doing so, they aim to prevent further price hikes and offer relief to the general public. NCCF has been actively purchasing tomatoes from wholesale markets and selling them at fair prices to ensure consumers are not overcharged. This strategy also stops middlemen from making large profits during the price surge.
Importantly, at ₹65 per kg, the government is not facing any losses, which highlights how much the price has been marked up by retailers. This intervention is aimed at bridging the gap between wholesale and retail prices, ensuring that the public can buy tomatoes at a more reasonable rate.
Previous Steps to Control Prices
This is not the first time the government has intervened to manage vegetable prices. In July, a similar move was made when Food Minister Pralhad Joshi ordered the sale of tomatoes at ₹60 per kg to curb rising prices. Such steps have been effective in the short term, but experts suggest that long-term solutions are needed to address these price fluctuations.
Interestingly, official data shows that retail tomato prices actually dropped by 47.91% in September compared to the same time last year. This is because tomato prices were already very high a year ago. The current increase is being closely monitored, and the government is expected to take more actions if needed.
While the government’s efforts have been widely welcomed by both consumers and retailers, it’s important to watch how the situation develops. The current intervention is a temporary fix, but for a more stable solution, experts believe that improving agricultural infrastructure, better supply chain management, and supporting farmers are key. The government may also need to expand these efforts to other cities if prices continue to rise or if other essential items experience similar increases.
For now, consumers in Delhi and nearby cities can breathe a sigh of relief knowing that they can buy tomatoes at a lower price. The government’s timely action has helped ease the burden on households, but it will be important to stay alert and act further if necessary.
