4 reasons : why tomato prices are high in India this season?

CA Fatarpekar

08/08/2023

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Erratic weather conditions: The monsoon rains arrived late in many parts of India this year, and they were also unseasonal and erratic. This led to flooding in some areas and drought in others. Tomato crops are sensitive to weather conditions, and the erratic rains damaged many tomato crops.
Increasing demand: The demand for tomatoes increases during the festive season and summer months. This is because tomatoes are used in many popular dishes that are consumed during these times. The demand for tomatoes has also increased due to the rising popularity of fast food and street food in India.
Slower imports: India imports tomatoes from countries like China and Bangladesh during the off-season. This is because the tomato growing season in India is from November to April. However, imports have been slow this year due to high prices in these countries. The high prices in China and Bangladesh are due to a number of factors, including bad weather and increased demand from other countries.
Hoarding: Some traders are hoarding tomatoes in anticipation of further price rise. This is a common practice in India, and it often contributes to shortages and high prices. The traders are buying tomatoes in bulk when the prices are low, and they are storing them in warehouses. When the prices rise, they sell the tomatoes at a profit.

Manisha Mohol and Associates