Tomato Prices Skyrocket Over 100% in One Month Amid El Niño’s Disruptive September Weather

Tomato prices have seen a dramatic increase at agricultural market terminals, more than doubling over the past month due to multiple factors including unusual September temperatures influenced by El Nino, reduced water availability, and crop diseases such as the tomato leaf curl virus. In key producing regions such as Karnataka and Andhra Pradesh, the modal price at the Kolar APMC has surged to ₹1,500 per quintal from ₹800 on September 10, while prices in Andhra Pradesh’s Palamaner have skyrocketed to ₹3,300 per quintal. Concurrently, arrivals of tomatoes at these markets have decreased significantly, compounding the issue of rising prices.

This spike in tomato prices is expected to affect the common citizen heavily, particularly in urban areas where retail prices have surged to around ₹50 per kg in major cities. While the increases benefit farmers in some regions, they present a challenge for consumers who rely on affordable vegetables as a staple in their diet. The disparity in prices among different regions, with Nashik seeing a drop in its APMC prices due to additional supply, adds further complexity to the market dynamics, indicating a volatile environment for both producers and consumers.

Looking ahead, the long-term outlook remains uncertain as significant drought conditions are reported across several states, including Andhra Pradesh and Karnataka, with severe rainfall deficits noted. Traders warn that prices could rise even further, potentially reaching levels last seen two years ago when retail prices exceeded ₹100 per kg. The government may need to consider measures to support farmers and stabilize supply chains, while also addressing the implications for food inflation and overall economic stability as consumer goods become increasingly expensive.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)