India’s tomato prices have experienced a significant decline, dropping from ₹200 per kilogram to a mere ₹14. This price fall has been met with relief by consumers, yet farmers are expressing concern over the development.
What Happened: A report by the Times of India reveals a dramatic dip in the price of tomatoes in India. The Mysuru Agricultural Produce Market Committee (APMC) reported that tomatoes were sold at ₹14 per kilogram on Sunday, a decrease from INR 20 the day before. In Bengaluru, the retail price ranges from ₹30 to ₹35 per kilogram.
The reduction in tomato prices is said to be due to decreased demand in the northern states, primarily driven by tomato imports from Nepal. Officials predict further reductions, with prices possibly dipping to ₹10 to ₹5 per kilogram in the wholesale market.
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Why It Matters: The sudden drop in tomato prices follows a period of soaring costs. In June, tomato prices had surged to ₹80-120 per kilogram due to high temperatures, low yield, and delayed rainfall across the country. This inflation spurred many residents living along the India-Nepal border to cross over to Nepal to purchase tomatoes.
The pressure of inflation also led major food chains like Burger King, McDonald’s, and Subway to remove tomatoes from their menus. Now, with prices plummeting, the concerns shift to the impact on farmers who could suffer significant losses due to this rapid price decline.
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