Retail prices of tomato may decline as wholesale rates fall over 30%

Tomatoes may soon be available for less than Rs 100/kg at the local vegetable store as the wholesale rates of the kitchen staple have fallen by more than 30% at a leading tomato market in Maharashtra which supports supplies during the August-December period.

The retail prices of vegetables in the consumption centres are usually double the wholesale rates or even higher, mainly due to addition of costs like transportation, market handling charges, commission of middlemen and the retail margins.

Officials said the arrival of tomatoes at the Pimpalgaon Baswant market in Nashik, Maharashtra, increased by six times during the past week, while other major markets like Bengaluru have also started seeing more arrivals.


There are a few pockets like Narayangaon, Nashik, Bengaluru and the foothills of the Himalayas which become the lifeline for tomato suppliers to the country during the monsoon season.

The Nashik belt feeds tomatoes to the country in the August to December period.

The average price of tomatoes at the Pimpalgaon market on Wednesday was Rs 37/kg, while the highest price was Rs 45/kg. A week ago, on August 10, the average price was Rs 57/kg while the highest price was 67/kg.

In the case of onions, the average rate at the Pimpalgaon Baswant market was Rs 23.50/kg on Wednesday, while the highest rate was Rs 28.64/kg. A week ago, the average rate of onion was Rs 19.50/kg while the highest rate was Rs 26-56/kg.

"Tomato prices will continue to decline in the coming days as arrivals are rising fast," said Minaz Shaikh, a wholesale trader of tomatoes and onions in Maharashtra. “The arrival has increased not only in Nashik but also in Bengaluru.”

In Delhi, the prices of tomatoes coming from the Pimpalgaon Baswant market have declined from this year’s high of Rs 4,000 pre crate of 28-30 kg to around Rs 1,500 per crate, said traders.

However, traders and wholesale market officials said onion arrivals are declining as farmers have started holding the crop in expectation of price appreciation. The delay in transplanting the red onion in Nashik district due to insufficient rainfall is also a worry, which is supporting onion prices.

Traders expect good quality onions to trade in the Rs 27-28/kg range for a few days, with the possibility of prices touching Rs 35/kg by Ganapati festival.

“We are not expecting a very big increase in prices as there is enough storage of onions with the farmers,” said Shaikh. “If they continue to hold the crop, prices can reach up to Rs 35/kg.”

Meanwhile, the current phase of deficit rainfall is not likely to affect the tomato crop standing in the fields. “Unlike onions, tomato farmers use drip irrigation and mulching, which helps retain moisture,” said Sachin Patil, a tomato farmer from Nashik.