CHENNAI: The recent surge in tomato prices, both in terms of its color and market value, has caught the attention of the general public. However, according to a report by the Bank of Baroda, relief may be on the horizon with the upcoming July-November crop season.
The report states that the average retail price of tomatoes witnessed a significant sequential increase of 38.5% in June. Similarly, the wholesale price also experienced a surge of 45.3% during the same period, as mentioned by Dipanwita Mazumdar, an Economist at the Bank of Baroda.
Data reveals a slight decline of 0.4% in tomato production, with estimates indicating a decrease from 20,694 ('000 MT) in 2021-22 to 20,621 ('000 MT) in the current year of 2022-23.
Analyzing the production on a state-wise basis, it is noteworthy that Madhya Pradesh, Karnataka, Andhra Pradesh, Gujarat, and Odisha contribute to 51.5% of the total tomato production. Among these, Gujarat experienced a significant decline of 23.9%, while Tamil Nadu and Chhattisgarh witnessed a production drop of approximately 20%, as mentioned in the report.
Given that the Rabi harvest season for tomatoes falls between December and June, the crop faces potential challenges due to heat waves and irregular rainfall, resulting in an unexpected surge in prices. However, the report suggests that the trajectory might ease with the arrival of the July-November crop season.
The inflationary impact caused by the unanticipated rise in tomato prices has led to a noticeable increase in vegetable prices overall.
The price trend for tomatoes demonstrates a seasonal pattern, particularly in the months of June, September, and November, coinciding with the harvesting and availability of the vegetable.
Furthermore, these price fluctuations are relatively short-lived, usually lasting for a period of 4-5 months. Therefore, it is reassuring to note that the current upward trend in prices may soon reverse as the fresh crop arrives, as stated in the report.
Tomato prices skyrocket across country, Rs 80-110 per kg, Here's Why