WHY TOMATO PRICE GOES UP IN MONSOON

SARASIJ MAJUMDER

Tomato prices have skyrocketed by more than 400% in recent past as the country faced a nationwide scarcity. Being a curry improving, and salad vegetable in Indian cuisine, Tomato has become a cause for concern due to s soaring prices. While the internet is having hilarious memes for the sudden hike, it's high time to identify the culprit. The sudden increase in tomato prices from ₹20 -- ₹40 per kg in June 2022, reaching ₹100 per kg in July 2023, has raised questions about the reasons behind this price volatility. Despite the soaring prices, the inflation rate for tomatoes is surprisingly negative, creating a puzzling economic phenomenon known as #Tomato-nomics. Why are Tomato Prices got High? We will try to find out in the following paragraph. Tomatoes Production in India: Tomato production is regionally concentrated in states like Andhra Pradesh, Madhya Pradesh, Karnataka, Odisha, and Gujarat, collectively accounting for approximately 50% of total production. India witnesses two main tomato crops annually - Kharif and Rabi. The Kharif crop is available from September, while the Rabi crop hits the market around March and available till JUNE. Mid July-August is a lean production period for tomatoes as they fall between yields. REFER THE ANNUAL SUPPLY CURVE ATTACHED Despite being one of the most cultivated vegetables, tomato production has been declining since its peak in 2019-20 at 21.187 million tonnes (MT). production, it has been declining since. In 2021-22, it dropped to 20.69MT and 20.62MT in 2022-23. Reasons Behind the High Tomato Prices: 1.Extreme Weather: Heatwaves and delayed monsoons in April and May led to pest attacks on tomato crops, affecting their quality and commercial realization. As a result, farmers received low prices for their produce in the months leading up to June. 2.CMV and ToMV Virus: The recent decline in tomato crops and the surge in tomato prices in Maharashtra, Karnataka, and other South Indian states can be attributed to the infestation of two plant viruses: the Tomato Mosaic Virus (ToMV) and the Cucumber Mosaic Virus (CMV). These viruses have caused partial to complete crop losses in tomato plantations over the last three years in some areas. As both viruses have a broad host range and can lead to nearly 100% crop loss if not treated in time, they have significantly impacted tomato yields, resulting in a rise in tomato prices. 3.Low Commercial Realization: Farmers faced the challenge of low commercial realization for their tomato crops in the recent months leading up to the price surge. Between December 2022 and April 2023, many farmers received prices as low as ₹6 to ₹11 per kg for their produce. This led to a situation where farmers had to sell their crops at unprofitable rates or even abandon their produce, resulting in a shortage of supply. 4.Farmers are shifting from Tomato Production: The low prices received by farmers in the previous year led to a significant impact on cultivation patterns. Many farmers who contribute substantially to tomato supplies shifted their focus to cultivating other crops which fetches higher prices in the market, motivating farmers to opt for alternative crops. This shift in cultivation resulted in reduced tomato production, further aggravating the Demand--Supply GAP and contributing to the surge in prices. Inferior-quality tomatoes forced many farmers to sell the product at low prices or abandon their crops, resulting in a crunch in tomato supply. 5.Incessant late rains further impacted the new crops and transportation to non-growing regions. 6.Regional Drop in Production: Tamil Nadu, Gujarat, and Chhattisgarh witnessed a 20% drop in tomato production, exacerbating the shortage. 7.Inflationary Pressures: The volatility of tomato prices has historically contributed to overall inflation levels in the country, affecting consumers' purchasing power. Consequences: - Tomato's price fluctuations have significant implications for the Consumer Price Index (CPI), making it a challenge for policymakers to control inflation.   Economic Distress: The high prices put a strain on households' budgets, especially for low-income families heavily reliant on tomatoes as a dietary staple. Possible Solutions for Reducing Tomato Prices: Improve Storage, Value and Supply Chains: Enhance storage facilities, value and supply chains to address perishability and transportation issues. Increase Processing Capacity: Convert tomatoes into paste and puree during peak seasons to ensure adequate supply during lean periods. Encourage Direct Sales: Promote direct sales by Farmer Producers Organizations to provide farmers with a larger share of consumer prices. Promote Cultivation in Poly Houses and Greenhouses: Encourage cultivation in controlled environments to control pest attacks and increase yields. Why is the Inflation Rate for Tomatoes Negative? High Base Effect: The negative inflation rate is a result of a high base effect. The index value for tomatoes in June 2022 was significantly higher due to soaring prices at that time. In June 2023, despite a spike in prices, the index value was much lower compared to the previous year, leading to negative inflation.

The first batch of tomato plants is planted between January and March, with the harvest occurring between April and June. This year, Heat waves and pest attacks on tomato fields resulted in decreased production, leading to a higher market rate. Unseasonal May rains also delayed harvesting and transportation.

The erratic weather patterns pose challenges to agricultural production. While fruit and vegetable production are cut by 30% this season, a study says that by 2050, maize yields will decline by 13%, wheat by 19.3%, and rice output by 15%. SOURCE OF INFORMATION:- GOI PUBLICATIONS, MOA & FW

©SARASIJ MAJUMDER