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Immediate Relief as Centre Lowers Tomato Price to ₹80 per kg
To kickstart this initiative, the Centre began selling tomatoes at a discounted rate of ₹90 per kg in Delhi-NCR through mobile vans on Friday. The following day, more cities were added to the distribution network. The government's intervention in selling tomatoes at a concessional rate of ₹90 per kg in various locations across the country has resulted in a decline in wholesale prices. An official statement mentioned that the prices had been exceptionally high in several regions.
After re-evaluating the situation across the country's numerous collection points, the government has decided to further reduce the price of tomatoes to ₹80 per kg starting Sunday, July 16th, 2023. This reduction applies to sales in Delhi, Noida, Lucknow, Kanpur, Varanasi, Patna, Muzaffarpur, and Arrah, facilitated through the cooperatives NAFED and NCCF.
The plan is to expand the sale of tomatoes at discounted prices to additional cities on Monday, depending on prevailing market conditions. The government emphasizes its commitment to providing relief to consumers in India, as stated in the official release.
The National Cooperative Consumers' Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) are responsible for selling tomatoes on behalf of the Centre through mobile vans. They have been procuring tomatoes from Madanapalli in Andhra Pradesh, Kolar in Karnataka, and Sanganeri in Maharashtra. Over the past two days, NCCF has successfully sold 35,000 kg of tomatoes and expects to sell an additional 20,000 kg in Delhi-NCR, 15,000 kg in Varanasi, and 10,000 kg each in Lucknow and Kanpur on Sunday.
NCCF Managing Director, Anice Joseph Chandra, expressed optimism that the further reduction in price to ₹80 per kg would help stabilize prices in the coming days. NCCF, in collaboration with NAFED, is currently selling tomatoes through mobile vans and a few NAFED-owned outlets in Delhi-NCR. Additionally, starting from Sunday, they will commence sales through retail outlets of Kendriya Bhandar.
The retail market prices of tomatoes have remained high, reaching up to ₹250 per kg in major cities due to monsoon rains and the lean season. According to government data, the average all-India retail price of tomatoes was around ₹117 per kg on Saturday. The Department of Consumer Affairs reported that the minimum price observed was ₹25 per kg, the maximum was ₹250 per kg, and the modal price was ₹100 per kg.
Among metropolitan areas, Delhi witnessed the highest tomato prices at ₹178 per kg, followed by Mumbai at ₹150 per kg, and Chennai at ₹132 per kg. It is worth noting that tomato prices typically surge during the lean production months of July-August and October-November. The current rise in prices can be attributed to disruptions in supply caused by the monsoon.
The government's efforts to address the tomato price surge have already made a positive impact. By intervening in the market, NCCF successfully lowered the wholesale rate from ₹130 per kg to ₹115 per kg in Lucknow after selling around 7,000 kg of tomatoes on Saturday. This demonstrates the effectiveness of the government's intervention, and NCCF plans to continue its efforts until prices stabilize.
In conclusion, the government's decision to reduce the subsidised price of tomatoes to ₹80 per kg with immediate effect aims to alleviate the financial burden on consumers. This initiative, implemented through NAFED and NCCF, involves the sale of tomatoes at discounted rates in various cities. By taking these measures, the government strives to provide relief to consumers and stabilize tomato prices in the market.