HomeFinancePrices of tomatoes spurt 142% in November, no immediate relief: Crisil

Prices of tomatoes spurt 142% in November, no immediate relief: Crisil

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Tomato prices have jumped by 142% year-on year in November and are likely to rise for another 45-50 days, according to Crisil Research.

Karnataka, Andhra Pradesh and Maharashtra are key suppliers of tomato from October to December. However, with standing crops being damaged by excess rains in Karnataka (105% above normal), Andhra Pradesh (40% above normal) and Maharashtra (22% above normal), the supply has fallen.

“Our on-ground interactions indicate that the situation is so grim in Karnataka that tomatoes are being sent from Nashik in Maharashtra. Prices of tomatoes have increased 142% on-year as on November 25 and are expected to remain elevated for the next 45-50 days till the harvest from Madhya Pradesh and Rajasthan reach markets across the country beginning January,” said Hetal Gandhi, director, Crisil Research. She said prices are expected to decline by 30% from the current high levels of around Rs 47 per kg in two-three months.

Similarly, onion prices should begin easing in two weeks, Crisil said. “The onion crop, which accounts for 14% of the total vegetables produced in India, has also been affected. Transplanting was delayed in the key growing regions of Maharashtra because of deficit rains in August. That delayed arrivals in October, leading to a 65% increase in prices compared with September, Gandhi said. “Fresh arrivals are expected from the northern states such as Haryana in the next 10-15 days, which should reduce prices across India. However, since 70% of onion production happens in the rabi season, November is the major sowing month and rainfall will be the key monitorable for both arrivals and prices,” Gandhi said.

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