Poor rainfall, sudden surge in production of tomatoes and decline in consumption are the key causes behind the drop in prices
Moneycontrol News
The price of tomatoes have steeply fallen from Rs 100 per kg a month ago to Rs 2 per kg as of August 30.
According to an Economic Times report, a kilo of tomato at the Narayangaon wholesale market of Maharashtra costs Rs 2 per kg, while it costs Rs 1.60 per kg in Madanapalle, Andhra Pradesh.
The paper noted that poor rainfall, a sudden surge in production of tomatoes and decline in its consumption and demand in Andhra Pradesh are the key causes behind the drop in prices.
The publication noted that a surge in production of the vegetable may be attributed to farmers banking on tomato prices rising to August 2017 levels.
Tomatoes costed Rs 900 for a 20kg crate and even sold for upto Rs 1,400 in the Narayangaon market at the time. Currently, the prices are now at Rs 400 for a 20kg crate.
Floods in the southern states have also led to choking of supplies, adding to losses for the farmers. The farmers are also forced to sell these vegetables at a distress price as they are of a perishable nature.