This is an archive article published on July 13, 2023

Amid soaring tomato prices, Centre orders distribution at discounted rates: The TL;DR

The discounted stocks will be sold at "major consumption centres where retail prices have recorded maximum increase in the last one month".

tomatoA vendor sorts tomatoes at a market, in Nagpur, Thursday, July 6, 2023. (PTI photo)
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Amid soaring tomato prices, Centre orders distribution at discounted rates: The TL;DR
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As the retail price of tomatoes hurtled to an average of Rs 111 per kg across India, the Centre on Wednesday directed the National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers Federation (NCCF) to immediately procure tomatoes from the key production hubs and distribute them at discounted rates in the major consumption areas.

The big point: The Department of Consumer Affairs has asked the NAFED and the NCCF to source tomatoes from mandis in Andhra Pradesh, Karnataka, and Maharashtra. These stocks will be sold at “major consumption centres where retail prices have recorded maximum increase in the last one month,” the Ministry of Consumer Affairs, Food, and Public Distribution said.

The details: The Centre has decided to sell the tomatoes at 25-30 per cent lower than the prevailing rates at these centres, a source told The Indian Express. “We have identified places where prices are currently exceptionally high. So, the procured quantity will be supplied at these places at a considerable discount,” Consumer Affairs Secretary Rohit Kumar Singh said.

The stocks will be made available in these markets in the next few days. As per the ministry’s press release, the discounted tomatoes will be distributed in Delhi-NCR by Friday.

The backdrop: According to data available on the website of the Department of Consumer Affairs, the all-India daily average retail price of tomato was recorded at Rs 111.53 per kg on Wednesday, which is 173.16 per cent higher than a year ago.

FYI: Currently, the supplies coming to markets in Gujarat, Madhya Pradesh and some other states are mostly from Maharashtra especially Satara, Narayangaon, and Nashik. The arrivals in Delhi-NCR are mainly from Himachal Pradesh, and some from Kolar in Karnataka, according to the consumer affairs ministry.

What’s next: The Centre has said that the cost of the staple vegetable will soon drop as more supplies are expected to come in. “New crop arrivals are expected soon from Nashik district. Furthermore, in August, additional supply is expected to come from Narayangaon and Aurangabad belt. Madhya Pradesh arrivals are also expected to start. Prices are anticipated to cool down in the near future, accordingly,” it stated.

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