Price of tomatoes plunges to Rs 2 per kg
From nearly Rs 100 per kg a month back, tomato prices have plunged to Rs 2 per kg in some wholesale markets of the country. According to some media reports, the whole price of this common vegetableNSE 0.00 % has fallen to Rs 2 per kg at Narayangaon wholesale market in Maharashtra and Rs 1.60 per kg in Madanapalle, Andhra Pradesh.
farmers worried as they stare at huge losses due to price crash.
The prices have risen due to sudden jump in production and fall in demand in some markets. August is deemed to be not so good for Andhra Pradesh due to lack of rains, the demand and consumption of tomatoes have thus fallen leading to lower prices.
In August last year, a 20 kg crate of tomatoes sold in the range of Rs 900 to Rs 1,400 at the Narayangaon market, but now it has fallen to Rs 400.
Taking cue of last year high prices, farmers had planted the vegetable on large scale but due to lack of rains, the quality of the crop is also not good. Further, the floods in several sothern states have also resulted in blocking of supplies. The combination of these factors has led to lower prices of the vegetable.
Also, the perishable nature of tomatoes often force the sellers to sell the item at a distress price.
Source: Economic Times