India's Department of Consumer Affairs has asked the National Agricultural Cooperative Marketing Federation and the National Cooperative Consumers Federation to procure tomatoes from Andhra Pradesh, Karnataka, and Maharashtra states and distribute them in regions with the highest surge in tomato prices.
The distribution centers will release tomatoes on the basis of an absolute hike in retail prices over the past month, the government said in the statement.
As of now, fresh stock will be made available to consumers in Delhi-NCR at discounted prices by Friday.
"Prices are anticipated to cool down in the near future, accordingly," the government said in the statement.
Reasons for Tomato Price Hike
While tomatoes are produced in nearly every Indian state, the southern and western regions account for nearly 60 percent of the country's total production. Their surplus produce is then used to ensure continuous supply to other parts of India.
While the peak harvesting season occurs from December to February, the months of July-August and October-November recorded lean production.
"July coinciding with monsoon season adds to further challenges related to distribution and increased transit losses adding to price rise," the statement reads.
The cycle of planting and harvesting seasons and variation across regions are primarily responsible for price seasonality in tomatoes. Apart from the normal price seasonality, temporary supply chain disruptions, and crop damage due to adverse weather conditions etc. often lead to sudden spikes in prices.