Retail prices of tomato may decline as wholesale rates fall over 30%

Pune: Tomatoes may soon be available for less than ₹100/kg at the local vegetable store as the wholesale rates of the kitchen staple have fallen by more than 30% at a leading tomato market in Maharashtra which supports supplies during the August-December period.

The retail prices of vegetables in the consumption centres are usually double the wholesale rates or even higher, mainly due to addition of costs like transportation, market handling charges, commission of middlemen and the retail margins.

Officials said the arrival of tomatoes at the Pimpalgaon Baswant market in Nashik, Maharashtra, increased by six times during the past week, while other major markets like Bengaluru have also started seeing more arrivals.

There are a few pockets like Narayangaon, Nashik, Bengaluru and the foothills of the Himalayas which become the lifeline for tomato suppliers to the country during the monsoon season.

The Nashik belt feeds tomatoes to the country in the August to December period.



The average price of tomatoes at the Pimpalgaon market on Wednesday was ₹37/kg, while the highest price was ₹45/kg. A week ago, on August 10, the average price was ₹57/kg while the highest price was ₹67/kg.

In the case of onions, the average rate at the Pimpalgaon Baswant market was ₹23.50/kg on Wednesday, while the highest rate was ₹28.64/kg. A week ago, the average rate of onion was ₹19.50/kg while the highest rate was ₹26-56/kg.

"Tomato prices will continue to decline in the coming days as arrivals are rising fast," said Minaz Shaikh, a wholesale trader of tomatoes and onions in Maharashtra. "The arrival has increased not only in Nashik but also in Bengaluru."

In Delhi, the prices of tomatoes coming from the Pimpalgaon Baswant market have declined from this year's high of ₹4,000 pre crate of 28-30 kg to around ₹1,500 per crate, said traders.

However, traders and wholesale market officials said onion arrivals are declining as farmers have started holding the crop in expectation of price appreciation. The delay in transplanting the red onion in Nashik district due to insufficient rainfall is also a worry, which is supporting onion prices.