Wholesale Prices of Tomato Reach Record Highs at Asia s Largest Market
Tirupati: The wholesale price for tomatoes at Madanapalle, renowned as Asia's largest tomato market, hit an all-time high of Rs 168 per kilo on Wednesday.
The continuing shortfall in tomato arrivals has triggered this sharp surge, which is bound to further increase the retail prices too. There is confusion as to why this price spiral. Horticultural officials say, however, that the area under tomato cultivation in the region remained the same this year as in the previous years.
Earlier, the retail prices for tomatoes varied from Rs 120 to Rs 150 per kilo in districts across the state. However, the wholesale price saw a substantial increase by Rs 20 to Rs 28 per kilo on Wednesday.
The Madanapalle market received 360 tonnes of tomatoes, with the first-grade priced between Rs 140 and Rs 168 per kg, and the second-grade between Rs 118 and Rs 138. While the premium grade is mainly supplied to superstores in metropolitan cities, the second-grade tomatoes reach supermarkets in southern states.
The third-grade tomatoes are supplied to most markets within the state. Vendors are procuring this at Rs 90-100 per kg and selling them for Rs 120 to Rs 160.
Traders attribute the shortfall in the arrival of tomatoes in wholesale markets as the reason for the price hike. They attributed this to a fall in production due to adverse weather conditions, particularly heavy rains.
Normally, the Madanapalle market sees a daily inflow of around 800mt to 900mt of tomatoes, which may surge to 1,400-1,500mt during the peak season. However, in recent days, arrivals have reduced to 350 to 500mt, resulting in a major supply-demand gap and consequent price surge, traders say.
Traders are predicting that the per-kilogram price of tomatoes could surpass Rs 200 by July end, not only in AP but across the South. They highlight the fall in tomato cultivation in Chittoor and Annamayya districts, forming Asia's largest tomato belt, as a leading cause of the price surge.
Horticultural officials disagree with this explanation. They say the area under tomato cultivation in these two districts remained consistent at over 7,000 hectares for several years.
It is likely this critical situation would persist until mid-September and the prices could stabilize once the produce from other districts becomes available in the market.
