Nashik: Farmers getting Re 1/kg for tomatoes

“Last year, I received Rs 30,400. Also, the payment was done in notes that I could spend. This year, not only has the price dipped, I am being paid in currency that not many people are willing to take,” says Kakad.

He is one of the many farmers in Nashik district who have been hit hard by the slump in tomato prices. The overproduction of tomatoes in the country, coupled with the demonetisation effect, has meant that at places such as Girnare, farmers have been forced to sell their produce for as less as Re 1 per kg. The average price for tomatoes in Nashik district for this entire month was a measly Rs 2.76 per kg. Last year during the same period, it was close to Rs 15.5 per kg.

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Nashik district accounts for over 40 per cent of the total tomatoes produced in Maharashtra. Over the past three years, tomato production has seen a major surge across the country, including in Maharashtra. In 2014, APMCs across Maharashtra saw a total of 3.90 lakh tonne tomatoes coming into the market, with Nashik accounting for over 30 per cent at 1.24 lakh tonne. The production has, however, spiked to nearly double at 8.59 lakh tonne this year, with Nashik accounting for 3.82 lakh tonnes.

While the increased production has played a role in bringing prices down, farmers say demonetisation is to blame too. Before the move, farmers were on an average getting Rs 5.2 per kg for tomatoes. Post November 8, when the decision was announced, the prices in Nashik dipped to Rs 2.76 per kg.

“This is the last stage of the tomato crop. It can’t survive in winter and farmers are desperate to dispose of their produce. The traders know this and are squeezing farmers, citing the effects of demonetisation. They say you either sell at this price or go home with your produce,” says Bhausaheb Shinde, a farmer from Palse in Nashik.

Traders claim the oversupply of the crop is deciding the price.

“There is no manipulation by traders. There is an oversupply in the market. The total produce that came in this month is almost double of what was seen during the same period last year. The overproduction across the country has caused the price drop,” says a trader from Girnare, not wishing to be named.

However, despite the low prices farmers are being offered, there has not been much fall in retail prices of tomatoes, which continue to be sold at Rs 10-15 per kg across the state.