Tomato prices in India skyrocket on tight supply

Tomato prices have risen sharply, touching Rs 80 per kg in some retail markets after heavy rains in Himachal Pradesh damaged road network in the Himalayan state, reducing supplies to main consumption centres.

The daily average retail price of tomato touched Rs 55 per kg on July 3 compared to Rs 35 a month ago, as per the price monitoring division of the consumer affairs ministry.

"The supply from Himachal has gone down after heavy rainfall," said Manoj Kumar, a vegetable trader at Azadpur Mandi wholesale market, adding that prices are expected to rise even higher.



The India Meteorological Department (IMD) has predicted heavy rainfall till July 7 in several tomato growing regions of Himachal Pradesh-a key supplier of the vegetable to North India--which could further inflate prices. "The monsoon trough is north of its normal position at mean sea level and a cyclonic circulation lies over Himachal Pradesh," IMD said in its weather forecast for the state on Thursday, adding that this could cause landslides and mudslides, disrupting roadways and traffic.

Heavy rainfall can also cause damage to horticulture and standing crops in some areas due to inundation, the weather office said.

Last year, heavy rainfall and flash floods pushed tomato prices to cross Rs 350 per kg in some retail markets, leading the north India operator of fast-food chain McDonald to temporarily stop using tomatoes in some outlets as there were not enough quantities meeting their quality specifications.

Monsoon months typically lead to a spurt in vegetable prices as rainfall affects harvesting including plucking and packaging. Rains also lead to more vegetable wastage during transportation impacting prices.

This year, however, tomato prices began rising in June itself in some markets, especially in south India as large parts of the country faced severe heatwave conditions, affecting horticulture crops adversely.