Government is seeking to buy tomatoes directly from farmers

The Centre is currently looking to buy tomatoes directly from farmers in regions where there is a surplus of them and prices are low.

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According to government sources, the price stabilisation fund (PSF) of the Consumer Affairs Ministry would be utilized to purchase tomatoes from farmers in regions where there is a surplus supply.

Following a good crop yield, the government has seen a considerable decrease in tomato prices in some areas of Andhra Pradesh, Karnataka, and Maharashtra. With forecasts of a healthy harvest in Andhra Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, and Telangana, crop output is likely to increase significantly during the following 40 days.

Tomato production is anticipated to increase from a predicted 9.56 lakh tonnes in September to 13 lakh tonnes in October 2023.

According to sources, the Ministry of Consumer Affairs, Food & Public Distribution and the Horticulture department are negotiating further specifics, including the purchase of tomatoes from regions with a greater supply to be sold in regions with a relative shortage to stabilise prices. Farmers already receive up to 50% in freight subsidies for tomatoes, onions, and potatoes through the Ministry of Food Processing Industries' Operation Greens programme.

In August, after retail prices had surpassed Rs 250 per kg in several regions of the nation, the government offered subsidised tomatoes through a number of cooperatives. Retail prices, however, fell to as low as Rs 3 per kg in September due to lower demand, government price intervention, and higher crop yields.

The average wholesale price of tomatoes has decreased to Rs 30 per kg, while the average retail price has decreased to Rs 15.8 per kg, according to data from the National Horticulture Board.

According to data from the Consumer Affairs Ministry, tomato wholesale prices have decreased across all of India by 63.3% from August to September and 18.4% on a yearly basis, while tomato retail prices have decreased by 61% from August to September.

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