Nafed, NCCF asked to sell tomatoes at discounted rates in bid to cool prices

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After initially ignoring the high price of tomatoes, the center on Wednesday began to take action, directing the cooperatives, Nafed and NCCF, to purchase vegetables in producing states and distribute them in consumer centers at affordable prices. The government said prices are expected to drop once the number of arrivals increases.

The Ministry of Consumer Affairs has directed the National Federation of Agricultural Cooperative Marketing (NAFED) and the National Federation of Cooperative Consumers (NCCF) to promptly purchase tomatoes from Mandis (farm market squares) in Andhra Pradesh, Karnataka and Maharashtra, and simultaneously distribute them to major consumption centers, where retail prices have skyrocketed. sharply in the past month.

“Stocks of tomatoes will be distributed through retail outlets at discounted prices to consumers in the Delhi-NCR area by Friday (July 14),” the Consumer Affairs Ministry said in a statement. Tomato prices have risen to Rs 160-170/kg in NCR.

The centers that are slated for release have recorded an increase in retail prices over the past month and the prevailing prices in these centers are higher than the average in India. Major consumption centers in states with a high concentration of intervention-specified centers were selected for the intervention, the statement said.

Also read: code red. Tomato-nomics – Behind the rising prices of kitchen staples

Although tomatoes are produced in almost all states, the southern and western regions contribute 56-58 percent. The country’s tomato production is tied at 20.62 million tonnes (metric tons) for the 2022-23 (July-June) crop year, compared to 20.69 million tonnes a year earlier, the Ministry of Agriculture said on June 26.

The southern and western regions are surplus states, and food for other markets depends on production seasons, which are different for different regions. The peak harvest season (December-February) provides the maximum amount in a year, while July-August and October-November are generally considered off-season for tomatoes.

The ministry said the monsoons in July add to distribution challenges and increase transportation losses, which further increases prices. However, prices this year are exceptionally higher than they were in the same month in the past.

The cycle of planting and harvest seasons, and variability across regions, is primarily responsible for the seasonality of prices in tomatoes. She added that apart from the seasonality of normal prices, temporary disruptions in the supply chain and crop damage due to adverse weather conditions often lead to sudden price hikes.

Also read: Tomato prices have risen to 120 EUR/kg from 20 USD/kg last week

Presently, the supplies to the markets in Gujarat, Madhya Pradesh and some other states are coming mostly from Maharashtra, especially Satara, Narayangaon and Nashik, which is expected to last until the end of July. Madanapalle (Chittoor) in Andhra Pradesh has also continued to arrive in reasonable quantities. The arrivals to Delhi-NCR are mainly from Himachal Pradesh and some amount from Kolar in Karnataka.

New crops are expected to arrive soon in Nashik district. Moreover, additional supplies are expected to arrive from Narayangaon and Aurangabad belt in August. It is also expected to start arriving in Madhya Pradesh.

We appreciate the government’s initiative to address the high price of tomatoes. As a player in the farm-to-table industry, we view this as an encouraging development that motivates us to continue our efforts in providing farm-fresh fruits and vegetables to our customers. Varun Khurana, founder and CEO of Otipy, a B2C platform, specifically for agricultural products, said he reinforces the importance of fostering strong ties with farmers and promoting sustainable sourcing practices.