Tomato prices, which soared to Rs 140 per kg six months ago, causing a significant burden on consumers, have now plummeted to below Rs 10 per kg, leaving farmers in distress. The sudden crash in prices is attributed to a surge in tomato imports from other states. Traders predict that the price of tomatoes will continue to decline in the coming months.
In June and July, the price of tomatoes in the Telugu states shot up due to a significant reduction in yield and a shrinkage of tomato-growing areas, primarily caused by cyclones. By the second week of June, a kilogram of tomatoes was priced at Rs 40. By the third week, the price had risen to Rs 90 per kg, and by the fourth week, it touched Rs 100. By July 1, it reached a peak of Rs 140 per kg, leading to significant for traders.
However, heavy rains in the following months led to a surge in tomato cultivation, resulting in an oversupply of the vegetables. By the end of August, tomato prices dropped to between Rs 60 and Rs 90 per kg. By September, the price continued to fall sharply, and in November, it had dropped to Rs 50 per kg. In the first week of December, tomatoes were sold for just Rs 20 per kg. By the last Monday, prices had fallen further to Rs 10 per kg.
In markets such as Lakshmipuram in Warangal and Balasamudram in Hanamkonda, the price of tomatoes was recorded at Rs 10 per kg. Traders offered a discount, selling tomatoes at Rs 8 per kg for bulk purchases of 10 kg or more. Initially, traders expected prices to be in the range of Rs 30-40 per kg, but the wholesale price had plummeted to just Rs 4 per kg, making it unprofitable for them. Farmers are left with very little, often only Rs 3-4 per kg after deducting transportation costs.
Farmers in districts close to Hyderabad, such as Medak, Rangareddy, Medchal, Mahabubnagar, Yadadri, Suryapeta, and Warangal, cultivated tomatoes across thousands of acres. However, traders in Hyderabad have been purchasing tomatoes from neighbouring regions, such as Kurnool, Nandyal, Madanpalle, Anantapur in Andhra Pradesh, and Bangalore in Karnataka. These traders buy tomatoes at Rs 2,500 to Rs 3,000 per quintal and resell them in Telangana at Rs 6,000 to Rs 7,000 per quintal. As a result, local farmers are forced to sell their produce at similar low prices.
A woman farmer from Mahabubnagar shared her plight. She is selling tomatoes from her one-acre farm at Rs 8 per kg, and the unsold tomatoes are being discarded on the roads for cattle to graze, as she fears they will rot. She expressed frustration that she isn’t even able to cover the costs of transportation for selling her tomatoes.
A vegetable trader from Mahabubnagar market explained that during the winter season, tomato yields increase, causing prices to fall.
Traders purchase 25 kg boxes of tomatoes for as little as Rs 80, which results in farmers receiving just Rs 3.50 per kg. In the open market, tomatoes are being sold at Rs 10 per kg, but by evening, traders are forced to lower the price to Rs 5 per kg.
The drastic fluctuation in tomato prices has left farmers in dire straits, struggling to make a living as prices continue to drop while the cost of cultivation and transportation remains high.
Farmers in distress as tomato prices crash
