Following a rise in price due to past rainfall in Telangana along with other Indian states, tomato prices in Hyderabad, Mumbai and other states have experienced a sharp decline.
Vendors say that increased tomato production in Nashik, Maharashtra, Andhra Pradesh, and the state as a whole contributes to the reason for the drop in tomato prices
The cost of tomatoes is declining after enormous rises in prices. A significant drop in the value of tomatoes in the bazaar is referred to as a drop in price.
Retail prices have fallen from as high as Rs 200 per kilo to as low as Rs 60–70 per kilogramme. Hyderabad citizens began purchasing other vegetables instead of tomatoes, which resulted in an enormous drop in sales volume of tomatoes.
The retail cost of tomatoes in Mumbai has also dropped to an amount of Rs 80-120 per kilo as a result of a boost in newer arrivals. The arrival of new varieties from southern India and different areas of Maharashtra is what has caused the rates to decline. Tomato prices fell down Rs 100 on Tuesday for the very first time in a couple of weeks due to a rise in tomato sales to markets.
Tomatoes were being sold at a wholesale price of Rs 50–60 per kg in the Vashi market, according to CNBC 18. The cost of tomatoes at different area marketplaces in Mumbai, namely Andheri West, Byculla, Khar Market, Bandra, and Dadar-Matunga, varied from Rs 80 to Rs 140 per kilo.
Cause of Tomato Price Drop
Tomato production is no exception to the fact that the weather has a significant impact on crop production. Numerous interrelated causes, ranging from seasonal variations to more general economic patterns, may be the reason for this event. It is necessary to look at a number of effects in order to comprehend the patterns underlying such price changes. They have an overall effect on tomato demand, supply, and price.
A key concept in figuring out variances in prices is the dynamics of demand and supply. The agricultural market situation is impacted by a number of interconnected factors that combine to result in a drop in tomato prices..
Demand and Supply of Tomatoes
The ups and downs of seasonal patterns are one of the main causes of a drop in tomato prices. Similar to a lot of other vegetables and fruits, tomatoes have specific seasons for growth. These circumstances may result in less production, which may decrease the supply and raise prices.
The rise of the crop in Nashik, Maharashtra, is another important factor leading to the fall in tomato costs within the city. “The crop loss in Nashik earlier had prompted the North-Eastern States and various other regions across the country to rely on tomatoes from Karnataka and Andhra Pradesh, and this had increased the price here in Karnataka,” stated Mr. Venkatesh.
“We have noticed a favourable price reduction over the last four days, which suggests a healthy trend. Currently, the wholesale cost of tomatoes is between 45 and 60 rupee per kilogramme, with a range selling for between 60 and 80 rupee per kilogramme at markets and stores. With an increase of almost 80,000 fresh boxes per day arriving from Kolar and other areas of Andhra Pradesh, the supply of tomatoes has increased. As a result of the rise in supply, there has also been an increase in production”, according to Venkatesh H., a manager at a chain of city-based grocery stores.
Prices have decreased, even in grocery online apps. Local tomatoes are available on a popular online grocery app for 75 per kg, while hybrid tomatoes cost 70 per kg.