Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
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Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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                            <p>Tomato prices are up through the roof. Retail prices are in the range of Rs 120-150 per kilogram in most mandis across India, making the household vegetable more <a href="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05" title="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05">expensive</a> than petrol. Prices, which at the beginning of the year were in the range of Rs. 25 a kg, have increased by an order of between 500-600 percent. &nbsp;</p><p><strong>What does the data show?</strong></p><p>The National Horticultural Board is a body under the Union Ministry of Agriculture. It has a database of prices and arrivals for vegetables, fruits and flowers. Using the monthly price and arrivals report, we extracted data from January 2020 onwards up till July 2023. There are two types of tomatoes listed in the database: Hybrid and local. We took three data points - wholesale prices, retail prices, arrivals - and charted the data. &nbsp; &nbsp;</p><p><strong>Chart 1</strong></p><p><img alt="" src="/upload/images/Capture.JPG" style="height:537px; width:1073px" /></p><p><span style="font-size:9px"><strong>Source:&nbsp;National Horticultural Board</strong></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The chart shows that wholesale and retail prices of Hybrid Tomato have risen to the highest level in three and a half years while arrivals have dropped to the lowest. In fact, the average arrival of Tomato at market yards this month (July 2023) was 130 metric tons, lower than the 246 metric tons in May 2020, the month the movement of goods started easing after the Covid-19 lockdown was lifted (The data gap in April&nbsp;is due to the same reason, a complete halt in the movement of goods). The rise in the prices of tomatoes has been exorbitant. Wholesale prices of hybrid tomatoes have risen 568 percent from January 2023 to July 2023, while retail prices have increased 489 percent in the same period. </span></span></p><p><strong><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Chart 2</span></span></strong></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><img alt="" src="/upload/images/tomato%20local.JPG" style="height:505px; width:1034px" /></span></span></p><p><span style="font-size:9px"><strong>Source:&nbsp;National Horticultural Board</strong></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The graph for Tomatoes (local) follows the same trajectory as its counterpart, except that the price rise is even more drastic at 800 percent. </span></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Why are Tomato Prices Surging?</strong></span></span></p><p><span style="font-family:Calibri,sans-serif"><span style="font-size:14.6667px">The data indicates that it is supply side issues that are responsible. Inadequate supply of tomatoes, and not excessive demand, is causing prices to skyrocket.&nbsp;</span></span>Data from the Horticulture Board shows that in July only 785 metric tons of hybrid tomatoes arrived at market yards, while for local tomateos the figure was just 264 tons, at a single market yard in Hyderabad. &nbsp;&nbsp;</p><p>First, some context. Global food prices have declined since the beginning of last year. In the aftermath of the Russian invasion of Ukraine in February, food and fertilizer prices rose, contributing to inflationary pressure world over. In India the Consumer Price Index <a href="https://tradingeconomics.com/india/inflation-cpi" title="https://tradingeconomics.com/india/inflation-cpi">rose</a> to 7.79 percent in April 2022 before declining to 6.71 percent in July. It then <a href="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf" title="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf">climbed</a> to 7.41 percent in September. The food price sub index rose to 8.6 percent. Although inflation declined to 4.25 percent in May 2023, the vegetables component has started rising again on the back of tomato prices.&nbsp;</p><p>The Finance Ministry&rsquo;s <a href="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf" title="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf">Annual Economic Review 2022-23</a> report released in May says, &ldquo;The easing of global supply chains, specific government interventions, and monetary tightening have led to softening of headline inflation in the second half [of FY23]. A few domestic factors, like unseasonal rainfall, continue to keep upward pressure on the prices of some vegetables, such as tomatoes&rdquo;. The Reserve Bank of India&rsquo;s &lsquo;<a href="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF" title="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF">Anatomy of Price Volatility Transmission in Indian Vegetab<br />les Market</a>&rsquo; report released on 7 July, 2023 states that, &ldquo;Despite making up a small portion of the Consumer Price Index Combined (CPI-C) basket, tomato, onion, and potato (TOP) - is a major contributor to the volatility of headline inflation. Volatility in these vegetable prices may generally be high due to their high perishability and vulnerability to weather-related disturbances on the back of relatively less elastic demand as these are key vegetables for Indian households&rdquo;. &nbsp;&nbsp;</p><p>An article in Firstpost says that, &quot;erratic climate trends, including untimely rainfall and cyclonic storms, have disrupted tomato production in southern and coastal areas. These regions typically supply a significant portion of India&rsquo;s tomatoes during this time of year, but the excessive rain has wreaked havoc. Tomato plants do not thrive in waterlogged conditions during the flowering and fruiting stages. Excessive water has disrupted pollination and caused significant yield losses&quot;. The piece argues that tomatoes, onions and potatoes (TOP) are among the most used vegetables in the Indian kitchen, but erratic climate has become a challenge for TOP prices.&nbsp;&nbsp;</p><p>Apart from the climate, a crop disease has hit the Tomato produce. Farmers at the Kolar agrcultural produce marketing yard in&nbsp;Karnataka, a major centre for the supply of Tomatoes throughout the country, say that the Tomato leaf curl virus has led to a substantial reduction in yields.&nbsp;The Kolar APMC has received only 3.2 lakh quintals of tomatoes in&nbsp;June 2023, as against 5.45 lakh quintals in June 2022. In fact, the arrivals have been on a downward trajectory since 2021.<br /><br /><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>What are the social effects of soaring Tomato prices? </strong></span></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tomatoes are one of the main ingredients in Indian cooking, used in a wide variety of dishes. However, the high prices are either leading to certain dishes being dropped entirely from hotel menus or substitutes are being used. Restaurants in India have <a href="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst" title="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">removed</a>&nbsp;tomatoes from their burgers and wraps, and there are reports that vegetable vendors are <a href="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848" title="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848">hiring</a> bouncers to guard their tomato stocks from customers angry about the price. Tomatoes have become such precious commodities that gangs are <a href="https://www.deccanherald.com/state/karnataka-districts/gang-waylays-farmer-flees-with-3000-kg-tomatoes-worth-rs-3-lakh-1235826.html" title="https://www.deccanherald.com/state/karnataka-districts/gang-waylays-farmer-flees-with-3000-kg-tomatoes-worth-rs-3-lakh-1235826.html">waylaying</a> farmers carrying produce to sell.&nbsp;</span></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Demand for <a href="https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html" title="https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html">alternatives</a> like <a href="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html" title="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html">tamarind</a> and tomato puree has surged, and this item may disappear soon from shop shelves. Prices of puree has increased, and restaurants which have switched to using the readymade pulp may have to increase prices to maintain their margins.&nbsp;&nbsp; &nbsp;&nbsp;</span></span></p><p><strong><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">What are the solutions?</span></span></strong></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Firstpost article argues that the government should identify pre-existing tomato clusters and invest in cold storages, solar dryers and processing plants in rural areas. Another solution could be to improve road and rail connectivity to hilly regions like Himachal Pradesh, Uttarakhand and Jammu &amp; Kashmir&nbsp;to facilitate off season production. The government could also think of a minimum support price for TOPs along with government procurement in order to maintain price and supply stability.&nbsp;</span></span></p><p><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>References:</strong></span></span></em></p><p><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">National Horticultural Board, Price and arrival data, <a href="https://www.nhb.gov.in/Default.aspx" title="https://www.nhb.gov.in/Default.aspx">click here</a> to access&nbsp;</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tomato prices at all-time high, when will rates decrease?, India Today, Please <a href="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05" title="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Vegetable vendor hires bouncers to guard Tomatoes, India Today, Please <a href="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848" title="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">As prices surge, McDonald&#39;s drops tomatoes from burgers and wraps in India, Times of India, Please <a href="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst" title="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India Consumer Price Index chart, Trading Economics, Please <a href="https://tradingeconomics.com/india/inflation-cpi" title="https://tradingeconomics.com/india/inflation-cpi">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Consumer Price Index, National Statistical Office, Ministry of Statistics &amp; Programme Implementation, Please <a href="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf" title="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf">click here</a> to access</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Annual Economic Review, 2022-23, Department of Economic Affairs, Ministry of Finance, Please <a href="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf" title="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf">click here</a> to access</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Anatomy of Price Volatility Transmission in Indian Vegetables Market, Reserve Bank of India, Please <a href="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF" title="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF">click here</a> to access</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Rising prices: Why India is in tomato trouble again, Firstpost, Please <a href="https://www.firstpost.com/opinion/rising-prices-why-india-is-in-tomato-trouble-again-12844842.html" title="https://www.firstpost.com/opinion/rising-prices-why-india-is-in-tomato-trouble-again-12844842.html">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tomato puree may soon do a vanish from store shelves, Deccan Herald, Please <a href="http://https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html" title="http://https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html">click here </a>to read</span></span></em><br /><em>Karnataka residents turn to alternatives as Tomato prices soar, Deccan Herald, Please <a href="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html" title="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html">click here</a> to read more</em></p><p><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Photo Source: Down to Earth Magazine, Photo Credit: Reuters</span></span></em></p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p>                                                           
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    <h1 class="cat-box-title">Explainer: Why are Tomato Prices on Fire?</h1>
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                            <p>Tomato prices are up through the roof. Retail prices are in the range of Rs 120-150 per kilogram in most mandis across India, making the household vegetable more <a href="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05" title="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05">expensive</a> than petrol. Prices, which at the beginning of the year were in the range of Rs. 25 a kg, have increased by an order of between 500-600 percent. &nbsp;</p><p><strong>What does the data show?</strong></p><p>The National Horticultural Board is a body under the Union Ministry of Agriculture. It has a database of prices and arrivals for vegetables, fruits and flowers. Using the monthly price and arrivals report, we extracted data from January 2020 onwards up till July 2023. There are two types of tomatoes listed in the database: Hybrid and local. We took three data points - wholesale prices, retail prices, arrivals - and charted the data. &nbsp; &nbsp;</p><p><strong>Chart 1</strong></p><p><img alt="" src="/upload/images/Capture.JPG" style="height:537px; width:1073px" /></p><p><span style="font-size:9px"><strong>Source:&nbsp;National Horticultural Board</strong></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The chart shows that wholesale and retail prices of Hybrid Tomato have risen to the highest level in three and a half years while arrivals have dropped to the lowest. In fact, the average arrival of Tomato at market yards this month (July 2023) was 130 metric tons, lower than the 246 metric tons in May 2020, the month the movement of goods started easing after the Covid-19 lockdown was lifted (The data gap in April&nbsp;is due to the same reason, a complete halt in the movement of goods). The rise in the prices of tomatoes has been exorbitant. Wholesale prices of hybrid tomatoes have risen 568 percent from January 2023 to July 2023, while retail prices have increased 489 percent in the same period. </span></span></p><p><strong><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Chart 2</span></span></strong></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><img alt="" src="/upload/images/tomato%20local.JPG" style="height:505px; width:1034px" /></span></span></p><p><span style="font-size:9px"><strong>Source:&nbsp;National Horticultural Board</strong></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The graph for Tomatoes (local) follows the same trajectory as its counterpart, except that the price rise is even more drastic at 800 percent. </span></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Why are Tomato Prices Surging?</strong></span></span></p><p><span style="font-family:Calibri,sans-serif"><span style="font-size:14.6667px">The data indicates that it is supply side issues that are responsible. Inadequate supply of tomatoes, and not excessive demand, is causing prices to skyrocket.&nbsp;</span></span>Data from the Horticulture Board shows that in July only 785 metric tons of hybrid tomatoes arrived at market yards, while for local tomateos the figure was just 264 tons, at a single market yard in Hyderabad. &nbsp;&nbsp;</p><p>First, some context. Global food prices have declined since the beginning of last year. In the aftermath of the Russian invasion of Ukraine in February, food and fertilizer prices rose, contributing to inflationary pressure world over. In India the Consumer Price Index <a href="https://tradingeconomics.com/india/inflation-cpi" title="https://tradingeconomics.com/india/inflation-cpi">rose</a> to 7.79 percent in April 2022 before declining to 6.71 percent in July. It then <a href="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf" title="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf">climbed</a> to 7.41 percent in September. The food price sub index rose to 8.6 percent. Although inflation declined to 4.25 percent in May 2023, the vegetables component has started rising again on the back of tomato prices.&nbsp;</p><p>The Finance Ministry&rsquo;s <a href="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf" title="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf">Annual Economic Review 2022-23</a> report released in May says, &ldquo;The easing of global supply chains, specific government interventions, and monetary tightening have led to softening of headline inflation in the second half [of FY23]. A few domestic factors, like unseasonal rainfall, continue to keep upward pressure on the prices of some vegetables, such as tomatoes&rdquo;. The Reserve Bank of India&rsquo;s &lsquo;<a href="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF" title="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF">Anatomy of Price Volatility Transmission in Indian Vegetab<br />les Market</a>&rsquo; report released on 7 July, 2023 states that, &ldquo;Despite making up a small portion of the Consumer Price Index Combined (CPI-C) basket, tomato, onion, and potato (TOP) - is a major contributor to the volatility of headline inflation. Volatility in these vegetable prices may generally be high due to their high perishability and vulnerability to weather-related disturbances on the back of relatively less elastic demand as these are key vegetables for Indian households&rdquo;. &nbsp;&nbsp;</p><p>An article in Firstpost says that, &quot;erratic climate trends, including untimely rainfall and cyclonic storms, have disrupted tomato production in southern and coastal areas. These regions typically supply a significant portion of India&rsquo;s tomatoes during this time of year, but the excessive rain has wreaked havoc. Tomato plants do not thrive in waterlogged conditions during the flowering and fruiting stages. Excessive water has disrupted pollination and caused significant yield losses&quot;. The piece argues that tomatoes, onions and potatoes (TOP) are among the most used vegetables in the Indian kitchen, but erratic climate has become a challenge for TOP prices.&nbsp;&nbsp;</p><p>Apart from the climate, a crop disease has hit the Tomato produce. Farmers at the Kolar agrcultural produce marketing yard in&nbsp;Karnataka, a major centre for the supply of Tomatoes throughout the country, say that the Tomato leaf curl virus has led to a substantial reduction in yields.&nbsp;The Kolar APMC has received only 3.2 lakh quintals of tomatoes in&nbsp;June 2023, as against 5.45 lakh quintals in June 2022. In fact, the arrivals have been on a downward trajectory since 2021.<br /><br /><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>What are the social effects of soaring Tomato prices? </strong></span></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tomatoes are one of the main ingredients in Indian cooking, used in a wide variety of dishes. However, the high prices are either leading to certain dishes being dropped entirely from hotel menus or substitutes are being used. Restaurants in India have <a href="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst" title="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">removed</a>&nbsp;tomatoes from their burgers and wraps, and there are reports that vegetable vendors are <a href="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848" title="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848">hiring</a> bouncers to guard their tomato stocks from customers angry about the price. Tomatoes have become such precious commodities that gangs are <a href="https://www.deccanherald.com/state/karnataka-districts/gang-waylays-farmer-flees-with-3000-kg-tomatoes-worth-rs-3-lakh-1235826.html" title="https://www.deccanherald.com/state/karnataka-districts/gang-waylays-farmer-flees-with-3000-kg-tomatoes-worth-rs-3-lakh-1235826.html">waylaying</a> farmers carrying produce to sell.&nbsp;</span></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Demand for <a href="https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html" title="https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html">alternatives</a> like <a href="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html" title="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html">tamarind</a> and tomato puree has surged, and this item may disappear soon from shop shelves. Prices of puree has increased, and restaurants which have switched to using the readymade pulp may have to increase prices to maintain their margins.&nbsp;&nbsp; &nbsp;&nbsp;</span></span></p><p><strong><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">What are the solutions?</span></span></strong></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Firstpost article argues that the government should identify pre-existing tomato clusters and invest in cold storages, solar dryers and processing plants in rural areas. Another solution could be to improve road and rail connectivity to hilly regions like Himachal Pradesh, Uttarakhand and Jammu &amp; Kashmir&nbsp;to facilitate off season production. The government could also think of a minimum support price for TOPs along with government procurement in order to maintain price and supply stability.&nbsp;</span></span></p><p><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>References:</strong></span></span></em></p><p><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">National Horticultural Board, Price and arrival data, <a href="https://www.nhb.gov.in/Default.aspx" title="https://www.nhb.gov.in/Default.aspx">click here</a> to access&nbsp;</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tomato prices at all-time high, when will rates decrease?, India Today, Please <a href="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05" title="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Vegetable vendor hires bouncers to guard Tomatoes, India Today, Please <a href="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848" title="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">As prices surge, McDonald&#39;s drops tomatoes from burgers and wraps in India, Times of India, Please <a href="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst" title="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India Consumer Price Index chart, Trading Economics, Please <a href="https://tradingeconomics.com/india/inflation-cpi" title="https://tradingeconomics.com/india/inflation-cpi">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Consumer Price Index, National Statistical Office, Ministry of Statistics &amp; Programme Implementation, Please <a href="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf" title="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf">click here</a> to access</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Annual Economic Review, 2022-23, Department of Economic Affairs, Ministry of Finance, Please <a href="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf" title="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf">click here</a> to access</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Anatomy of Price Volatility Transmission in Indian Vegetables Market, Reserve Bank of India, Please <a href="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF" title="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF">click here</a> to access</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Rising prices: Why India is in tomato trouble again, Firstpost, Please <a href="https://www.firstpost.com/opinion/rising-prices-why-india-is-in-tomato-trouble-again-12844842.html" title="https://www.firstpost.com/opinion/rising-prices-why-india-is-in-tomato-trouble-again-12844842.html">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tomato puree may soon do a vanish from store shelves, Deccan Herald, Please <a href="http://https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html" title="http://https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html">click here </a>to read</span></span></em><br /><em>Karnataka residents turn to alternatives as Tomato prices soar, Deccan Herald, Please <a href="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html" title="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html">click here</a> to read more</em></p><p><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Photo Source: Down to Earth Magazine, Photo Credit: Reuters</span></span></em></p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p>                                                           
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    <h1 class="cat-box-title">Explainer: Why are Tomato Prices on Fire?</h1>
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                            <p>Tomato prices are up through the roof. Retail prices are in the range of Rs 120-150 per kilogram in most mandis across India, making the household vegetable more <a href="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05" title="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05">expensive</a> than petrol. Prices, which at the beginning of the year were in the range of Rs. 25 a kg, have increased by an order of between 500-600 percent. &nbsp;</p><p><strong>What does the data show?</strong></p><p>The National Horticultural Board is a body under the Union Ministry of Agriculture. It has a database of prices and arrivals for vegetables, fruits and flowers. Using the monthly price and arrivals report, we extracted data from January 2020 onwards up till July 2023. There are two types of tomatoes listed in the database: Hybrid and local. We took three data points - wholesale prices, retail prices, arrivals - and charted the data. &nbsp; &nbsp;</p><p><strong>Chart 1</strong></p><p><img alt="" src="/upload/images/Capture.JPG" style="height:537px; width:1073px" /></p><p><span style="font-size:9px"><strong>Source:&nbsp;National Horticultural Board</strong></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The chart shows that wholesale and retail prices of Hybrid Tomato have risen to the highest level in three and a half years while arrivals have dropped to the lowest. In fact, the average arrival of Tomato at market yards this month (July 2023) was 130 metric tons, lower than the 246 metric tons in May 2020, the month the movement of goods started easing after the Covid-19 lockdown was lifted (The data gap in April&nbsp;is due to the same reason, a complete halt in the movement of goods). The rise in the prices of tomatoes has been exorbitant. Wholesale prices of hybrid tomatoes have risen 568 percent from January 2023 to July 2023, while retail prices have increased 489 percent in the same period. </span></span></p><p><strong><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Chart 2</span></span></strong></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><img alt="" src="/upload/images/tomato%20local.JPG" style="height:505px; width:1034px" /></span></span></p><p><span style="font-size:9px"><strong>Source:&nbsp;National Horticultural Board</strong></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The graph for Tomatoes (local) follows the same trajectory as its counterpart, except that the price rise is even more drastic at 800 percent. </span></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Why are Tomato Prices Surging?</strong></span></span></p><p><span style="font-family:Calibri,sans-serif"><span style="font-size:14.6667px">The data indicates that it is supply side issues that are responsible. Inadequate supply of tomatoes, and not excessive demand, is causing prices to skyrocket.&nbsp;</span></span>Data from the Horticulture Board shows that in July only 785 metric tons of hybrid tomatoes arrived at market yards, while for local tomateos the figure was just 264 tons, at a single market yard in Hyderabad. &nbsp;&nbsp;</p><p>First, some context. Global food prices have declined since the beginning of last year. In the aftermath of the Russian invasion of Ukraine in February, food and fertilizer prices rose, contributing to inflationary pressure world over. In India the Consumer Price Index <a href="https://tradingeconomics.com/india/inflation-cpi" title="https://tradingeconomics.com/india/inflation-cpi">rose</a> to 7.79 percent in April 2022 before declining to 6.71 percent in July. It then <a href="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf" title="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf">climbed</a> to 7.41 percent in September. The food price sub index rose to 8.6 percent. Although inflation declined to 4.25 percent in May 2023, the vegetables component has started rising again on the back of tomato prices.&nbsp;</p><p>The Finance Ministry&rsquo;s <a href="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf" title="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf">Annual Economic Review 2022-23</a> report released in May says, &ldquo;The easing of global supply chains, specific government interventions, and monetary tightening have led to softening of headline inflation in the second half [of FY23]. A few domestic factors, like unseasonal rainfall, continue to keep upward pressure on the prices of some vegetables, such as tomatoes&rdquo;. The Reserve Bank of India&rsquo;s &lsquo;<a href="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF" title="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF">Anatomy of Price Volatility Transmission in Indian Vegetab<br />les Market</a>&rsquo; report released on 7 July, 2023 states that, &ldquo;Despite making up a small portion of the Consumer Price Index Combined (CPI-C) basket, tomato, onion, and potato (TOP) - is a major contributor to the volatility of headline inflation. Volatility in these vegetable prices may generally be high due to their high perishability and vulnerability to weather-related disturbances on the back of relatively less elastic demand as these are key vegetables for Indian households&rdquo;. &nbsp;&nbsp;</p><p>An article in Firstpost says that, &quot;erratic climate trends, including untimely rainfall and cyclonic storms, have disrupted tomato production in southern and coastal areas. These regions typically supply a significant portion of India&rsquo;s tomatoes during this time of year, but the excessive rain has wreaked havoc. Tomato plants do not thrive in waterlogged conditions during the flowering and fruiting stages. Excessive water has disrupted pollination and caused significant yield losses&quot;. The piece argues that tomatoes, onions and potatoes (TOP) are among the most used vegetables in the Indian kitchen, but erratic climate has become a challenge for TOP prices.&nbsp;&nbsp;</p><p>Apart from the climate, a crop disease has hit the Tomato produce. Farmers at the Kolar agrcultural produce marketing yard in&nbsp;Karnataka, a major centre for the supply of Tomatoes throughout the country, say that the Tomato leaf curl virus has led to a substantial reduction in yields.&nbsp;The Kolar APMC has received only 3.2 lakh quintals of tomatoes in&nbsp;June 2023, as against 5.45 lakh quintals in June 2022. In fact, the arrivals have been on a downward trajectory since 2021.<br /><br /><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>What are the social effects of soaring Tomato prices? </strong></span></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tomatoes are one of the main ingredients in Indian cooking, used in a wide variety of dishes. However, the high prices are either leading to certain dishes being dropped entirely from hotel menus or substitutes are being used. Restaurants in India have <a href="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst" title="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">removed</a>&nbsp;tomatoes from their burgers and wraps, and there are reports that vegetable vendors are <a href="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848" title="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848">hiring</a> bouncers to guard their tomato stocks from customers angry about the price. Tomatoes have become such precious commodities that gangs are <a href="https://www.deccanherald.com/state/karnataka-districts/gang-waylays-farmer-flees-with-3000-kg-tomatoes-worth-rs-3-lakh-1235826.html" title="https://www.deccanherald.com/state/karnataka-districts/gang-waylays-farmer-flees-with-3000-kg-tomatoes-worth-rs-3-lakh-1235826.html">waylaying</a> farmers carrying produce to sell.&nbsp;</span></span></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Demand for <a href="https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html" title="https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html">alternatives</a> like <a href="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html" title="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html">tamarind</a> and tomato puree has surged, and this item may disappear soon from shop shelves. Prices of puree has increased, and restaurants which have switched to using the readymade pulp may have to increase prices to maintain their margins.&nbsp;&nbsp; &nbsp;&nbsp;</span></span></p><p><strong><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">What are the solutions?</span></span></strong></p><p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Firstpost article argues that the government should identify pre-existing tomato clusters and invest in cold storages, solar dryers and processing plants in rural areas. Another solution could be to improve road and rail connectivity to hilly regions like Himachal Pradesh, Uttarakhand and Jammu &amp; Kashmir&nbsp;to facilitate off season production. The government could also think of a minimum support price for TOPs along with government procurement in order to maintain price and supply stability.&nbsp;</span></span></p><p><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>References:</strong></span></span></em></p><p><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">National Horticultural Board, Price and arrival data, <a href="https://www.nhb.gov.in/Default.aspx" title="https://www.nhb.gov.in/Default.aspx">click here</a> to access&nbsp;</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tomato prices at all-time high, when will rates decrease?, India Today, Please <a href="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05" title="https://www.indiatoday.in/business/story/tomato-prices-record-high-will-rates-reduce-anytime-soon-2402181-2023-07-05">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Vegetable vendor hires bouncers to guard Tomatoes, India Today, Please <a href="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848" title="https://www.ndtv.com/india-news/samajwadi-party-worker-also-vegetable-vendor-hires-bouncers-to-guard-tomatoes-4191848">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">As prices surge, McDonald&#39;s drops tomatoes from burgers and wraps in India, Times of India, Please <a href="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst" title="http://timesofindia.indiatimes.com/articleshow/101571149.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">India Consumer Price Index chart, Trading Economics, Please <a href="https://tradingeconomics.com/india/inflation-cpi" title="https://tradingeconomics.com/india/inflation-cpi">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Consumer Price Index, National Statistical Office, Ministry of Statistics &amp; Programme Implementation, Please <a href="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf" title="https://mospi.gov.in/sites/default/files/press_release/CPI_PR_September_2022.pdf">click here</a> to access</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Annual Economic Review, 2022-23, Department of Economic Affairs, Ministry of Finance, Please <a href="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf" title="https://dea.gov.in/sites/default/files/Annual%20Economic%20Review_May%202023.pdf">click here</a> to access</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Anatomy of Price Volatility Transmission in Indian Vegetables Market, Reserve Bank of India, Please <a href="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF" title="https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/DRG49APVTINVEG8C391EEC0D1046909E64CED2CF3C9830.PDF">click here</a> to access</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Rising prices: Why India is in tomato trouble again, Firstpost, Please <a href="https://www.firstpost.com/opinion/rising-prices-why-india-is-in-tomato-trouble-again-12844842.html" title="https://www.firstpost.com/opinion/rising-prices-why-india-is-in-tomato-trouble-again-12844842.html">click here</a> to read</span></span></em><br /><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tomato puree may soon do a vanish from store shelves, Deccan Herald, Please <a href="http://https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html" title="http://https://www.deccanherald.com/business/economy-business/tomato-puree-may-soon-do-a-vanish-from-store-shelves-1236042.html">click here </a>to read</span></span></em><br /><em>Karnataka residents turn to alternatives as Tomato prices soar, Deccan Herald, Please <a href="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html" title="https://www.deccanherald.com/state/top-karnataka-stories/karnataka-residents-turn-to-alternatives-as-tomato-prices-skyrocket-1236204.html">click here</a> to read more</em></p><p><em><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Photo Source: Down to Earth Magazine, Photo Credit: Reuters</span></span></em></p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p>                                                           
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Explainer: Why are Tomato Prices on Fire?

Published on Jul 10, 2023   Modified on Jul 17, 2023

Tomato prices are up through the roof. Retail prices are in the range of Rs 120-150 per kilogram in most mandis across India, making the household vegetable more expensive than petrol. Prices, which at the beginning of the year were in the range of Rs. 25 a kg, have increased by an order of between 500-600 percent.   What does the data show? The National Horticultural Board is a body under the Union Ministry of Agriculture. It has a database of prices and arrivals for vegetables, fruits and flowers. Using the monthly price and arrivals report, we extracted data from January 2020 onwards up till July 2023. There are two types of tomatoes listed in the database: Hybrid and local. We took three data points - wholesale prices, retail prices, arrivals - and charted the data.     Chart 1 Source: National Horticultural Board The chart shows that wholesale and retail prices of Hybrid Tomato have risen to the highest level in three and a half years while arrivals have dropped to the lowest. In fact, the average arrival of Tomato at market yards this month (July 2023) was 130 metric tons, lower than the 246 metric tons in May 2020, the month the movement of goods started easing after the Covid-19 lockdown was lifted (The data gap in April is due to the same reason, a complete halt in the movement of goods). The rise in the prices of tomatoes has been exorbitant. Wholesale prices of hybrid tomatoes have risen 568 percent from January 2023 to July 2023, while retail prices have increased 489 percent in the same period. Chart 2 Source: National Horticultural Board The graph for Tomatoes (local) follows the same trajectory as its counterpart, except that the price rise is even more drastic at 800 percent. Why are Tomato Prices Surging? The data indicates that it is supply side issues that are responsible. Inadequate supply of tomatoes, and not excessive demand, is causing prices to skyrocket. Data from the Horticulture Board shows that in July only 785 metric tons of hybrid tomatoes arrived at market yards, while for local tomateos the figure was just 264 tons, at a single market yard in Hyderabad.    First, some context. Global food prices have declined since the beginning of last year. In the aftermath of the Russian invasion of Ukraine in February, food and fertilizer prices rose, contributing to inflationary pressure world over. In India the Consumer Price Index rose to 7.79 percent in April 2022 before declining to 6.71 percent in July. It then climbed to 7.41 percent in September. The food price sub index rose to 8.6 percent. Although inflation declined to 4.25 percent in May 2023, the vegetables component has started rising again on the back of tomato prices.  The Finance Ministry’s Annual Economic Review 2022-23 report released in May says, “The easing of global supply chains, specific government interventions, and monetary tightening have led to softening of headline inflation in the second half [of FY23]. A few domestic factors, like unseasonal rainfall, continue to keep upward pressure on the prices of some vegetables, such as tomatoes”. The Reserve Bank of India’s ‘Anatomy of Price Volatility Transmission in Indian Vegetab les Market’ report released on 7 July, 2023 states that, “Despite making up a small portion of the Consumer Price Index Combined (CPI-C) basket, tomato, onion, and potato (TOP) - is a major contributor to the volatility of headline inflation. Volatility in these vegetable prices may generally be high due to their high perishability and vulnerability to weather-related disturbances on the back of relatively less elastic demand as these are key vegetables for Indian households”.    An article in Firstpost says that, "erratic climate trends, including untimely rainfall and cyclonic storms, have disrupted tomato production in southern and coastal areas. These regions typically supply a significant portion of India’s tomatoes during this time of year, but the excessive rain has wreaked havoc. Tomato plants do not thrive in waterlogged conditions during the flowering and fruiting stages. Excessive water has disrupted pollination and caused significant yield losses". The piece argues that tomatoes, onions and potatoes (TOP) are among the most used vegetables in the Indian kitchen, but erratic climate has become a challenge for TOP prices.   Apart from the climate, a crop disease has hit the Tomato produce. Farmers at the Kolar agrcultural produce marketing yard in Karnataka, a major centre for the supply of Tomatoes throughout the country, say that the Tomato leaf curl virus has led to a substantial reduction in yields. The Kolar APMC has received only 3.2 lakh quintals of tomatoes in June 2023, as against 5.45 lakh quintals in June 2022. In fact, the arrivals have been on a downward trajectory since 2021. What are the social effects of soaring Tomato prices? Tomatoes are one of the main ingredients in Indian cooking, used in a wide variety of dishes. However, the high prices are either leading to certain dishes being dropped entirely from hotel menus or substitutes are being used. Restaurants in India have removed tomatoes from their burgers and wraps, and there are reports that vegetable vendors are hiring bouncers to guard their tomato stocks from customers angry about the price. Tomatoes have become such precious commodities that gangs are waylaying farmers carrying produce to sell.  Demand for alternatives like tamarind and tomato puree has surged, and this item may disappear soon from shop shelves. Prices of puree has increased, and restaurants which have switched to using the readymade pulp may have to increase prices to maintain their margins.      What are the solutions? The Firstpost article argues that the government should identify pre-existing tomato clusters and invest in cold storages, solar dryers and processing plants in rural areas. Another solution could be to improve road and rail connectivity to hilly regions like Himachal Pradesh, Uttarakhand and Jammu & Kashmir to facilitate off season production. The government could also think of a minimum support price for TOPs along with government procurement in order to maintain price and supply stability.  References: National Horticultural Board, Price and arrival data, click here to access  Tomato prices at all-time high, when will rates decrease?, India Today, Please click here to read Vegetable vendor hires bouncers to guard Tomatoes, India Today, Please click here to read As prices surge, McDonald's drops tomatoes from burgers and wraps in India, Times of India, Please click here to read India Consumer Price Index chart, Trading Economics, Please click here to read Consumer Price Index, National Statistical Office, Ministry of Statistics & Programme Implementation, Please click here to access Annual Economic Review, 2022-23, Department of Economic Affairs, Ministry of Finance, Please click here to access Anatomy of Price Volatility Transmission in Indian Vegetables Market, Reserve Bank of India, Please click here to access Rising prices: Why India is in tomato trouble again, Firstpost, Please click here to read Tomato puree may soon do a vanish from store shelves, Deccan Herald, Please click here to read Karnataka residents turn to alternatives as Tomato prices soar, Deccan Herald, Please click here to read more Photo Source: Down to Earth Magazine, Photo Credit: Reuters

Common Cause, 10 July, 2023

Tagged with: Agriculture Farmers Food Inflation Food Price Inflation India Prices Retail Prices Tomatoes Vegetables Wholesale Prices

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