Tomato farmers in Andhra Pradesh face dire losses as prices plummet

TIRUPATI: Tomato farmers in the Madanapalle, Punganur, Palamaner, and V. Kota regions of erstwhile Chittoor district, and other parts of the state, who were basking in the glow of robust profits just two months ago, are now grappling with substantial losses as tomato prices have plummeted dramatically.

Traditionally, the months of August and September have been a blessing for tomato growers, offering decent prices. Eager to capitalize on this trend, many farmers invested heavily in tomato cultivation. However, their optimism took a blow in the second week of August as prices began a steady decline, primarily due to increased tomato yields from other regions.

Just a few months ago, until the first week of June, July, and August, a 15 kg box of tomatoes would fetch prices ranging from Rs. 1,350 to Rs. 2,000. Now, the situation has turned dire, with a high-quality 15 kg box being priced as low as Rs 90 in the Punganur market, Rs 135 in the Madanapalle market, and Rs 60 in a few other regions in the district. These rock-bottom prices have left farmers struggling to cope with losses that far exceed their initial investments.

Mr. G. Ramesh, a tomato farmer, expressed his distress, saying, "We invested heavily in tomato cultivation, spending up to Rs 1 to Rs 1.2 lakh per acre on labour, fertilizers, pesticides, weed control, and other expenses. We had high hopes, given the initial prices, but now it's a disaster. Untimely rain and pest infestations during the harvest season have further exacerbated our losses."

According to information, the average price of a 15 kg box of tomatoes in the market has dwindled to a mere Rs. 60. Adding to their woes, additional expenses such as Rs 10 to Rs 12 for packaging, Rs 9 to 10 for transportation, Rs 6 to 8 for commission, and Rs 2 for other costs bring the total cost to Rs 27 to 32, further eroding the already razor-thin profit margins for both farmers and traders alike.

On the flip side, traders from neighbouring states, who initially rushed to the markets in the region to procure tomatoes, are now grappling with dwindling demand. “The sudden surge in tomato yields, combined with the availability of harvests from other states, has triggered a decrease in demand for locally produced tomatoes, causing prices to nosedive”, a local trader said.

The distressing drop in tomato prices has led to a grim scene in the state, particularly in districts like Chittoor and Kurnool, where farmers have resorted to dumping their produce on the roads. In Vizag's Gnanapuram market, it was observed that tomato traders are avoiding the labour costs of carrying boxes into the market by unloading their produce outside and selling them at Rs 10 per kilo.