Tomato farmers are facing a double blow. On one hand is the drought situation, while on the other hand prices have fallen drastically at Pimpalgaon APMC, one of India’s largest wholesale tomato markets. According to media reports, due to excess supply and weak demand, prices fell by around 65% in a week to Rs. 111 has been done.
Talking about the retail market, vegetables in Nashik on Monday cost Rs. 20 per kg, while a week ago it was priced at Rs. 40 per kg – meaning the price fell by an average of 50 per cent. A retailer said in a media report that it takes a day or two to see the impact of wholesale price cuts in the retail market. If this trend continues then the prices in the retail market may fall further in the coming days.
Big fall in tomato prices
According to a TOI report, the average wholesale price at the Agricultural Produce Market Committee (APMC) on October 12 was Rs 321 per 20 kg crate (about Rs 16 per kg), which fell to just Rs 111 per crate (Rs 5.55 per kg) on Monday. This has added to the concern of farmers, who are already struggling with the rising cost of farming. An APMC official told a TOI report that for the past one week, 3 lakh to 3.75 lakh crates of tomatoes have been arriving at APMC every day.
Demand is very low compared to the huge increase in supply, which has pushed prices to record lows. On Monday, depending on the quality of the tomatoes, prices ranged from Rs 20 to Rs 331 per crate. Poor quality tomatoes were sold for up to Rs 1 per kg, while good quality tomatoes were sold for up to Rs 16.55 per kg. Traders say that if this trend continues, prices may fall further.
Demand is low, supply is high
According to traders, the reason for the increase in the income of tomatoes in the market is due to the high temperature, due to which the tomatoes ripen faster. The officer-in-charge of the tomato department of APMC said that because of the heat, tomatoes are ripening faster than usual, due to which the income in the market has increased. There has been no significant relief on the demand front either.
APMC officials said the market was sluggish during Navratri, as many wholesale markets were closed during this time. Along with this, export demand was also weak. Farmers’ woes compounded when major consuming states like Uttar Pradesh, Bihar and Madhya Pradesh reduced their dependence on tomatoes from Nashik and started meeting their needs from local supplies.
