Tomato prices crash 65% in a week as drought-hit Nashik farmers face a double blow

Tomato farmers are facing a double blow as drought conditions coincide with a sharp fall in prices at Pimpalgaon APMC, one of India’s largest wholesale tomato markets. Prices have plunged nearly 65% in a week to Rs 111 per 20-kg crate amid excess supply and weak demand, as per a report by The Times of India.

On the retail front, the kitchen staple was selling for Rs 20 per kg in Nashik on Monday as compared to about Rs 40 per kg a week earlier — an average drop of 50%. “The decline in wholesale prices take a day or two before reflecting in the retail market. If the trend persists, further correction in prices is expected in the retail market in the coming days,” a retailer told TOI.

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The average wholesale rate at the Agricultural Produce Market Committee (APMC) nosedived from Rs 321 per crate of 20kg (around Rs 16 per kg) on Oct 12 to a mere Rs 111 per crate (Rs 5.55 per kg) on Monday, triggering concerns among growers already battling rising cultivation costs. “The market has been swamped by arrivals, with 3 lakh to 3.75 lakh crates reaching the APMC daily over the past week. The surge in supply has badly outstripped demand, dragging prices to rock-bottom levels,” an APMC official said.

On Monday, tomato prices varied from Rs 20 to Rs 331 per crate, depending on quality. Poor-quality tomatoes sold for as little as Rs 1 per kg, while premium produce fetched up to Rs 16.55 per kg. Traders said prices could fall further if the trend continued.

Traders attributed the increase in market arrivals to high temperatures, which accelerated the ripening of tomatoes. “Because of the heat, tomatoes are ripening earlier than usual, leading to higher arrivals,” an official in charge of the tomato section at the APMC said.

The demand side has offered little relief. The APMC officials pointed to a slowdown during the Navaratra period, when several wholesale markets remained shut, coupled with weaker export demand.

Adding to growers’ woes, key consuming states like Uttar Pradesh, Bihar and Madhya Pradesh are currently meeting their needs through local supplies, reducing dependence on tomatoes from Nashik.

(With inputs from TOI)