NASHIK/PUNE: Tomato prices have dropped to Rs 2 per kg from Rs 40 per kg in the Nashik wholesale market over the past few days, triggering speculation of a state-wide cascading effect as Nashik district supplies a considerable amount of the crop across markets in Maharashtra.

READ ALSO: Weather, good supply slash veggie prices

Sources in Nashik attributed the decline in price to a sudden drop in demand and increase in supply. Market sources said tomatoes are now retailing at around Rs 5 per kg from Rs 60 per kg a few days back.

Maharashtra is the largest exporter of horticultural crops like tomatoes, mangoes, grapes and pomegranates. The state accounts for more than 50% of the total export of these crops.

Lasalgaon APMC president Nanasaheb Patil told TOI that while tomato prices have been falling since August, the recent, sudden drop is “dramatic” and has resulted in farmers incurring “heavy losses”.

“Usually, the rate of a crate holding 20 kg of tomatoes is around Rs 800-900. The rate came down to Rs 500 after the government stopped exports to neighbouring countries like Pakistan and Bangladesh in August. The rate then fell to Rs 300-400 per crate in September, and remained stable during the month. Now, however, the rate has fallen to Rs 40 a crate,” Patil said.

Patil said farmers have not been able to harvest a good crop this year. “The late monsoon caused a delay in sowing and harvesting.

Besides, the first two plantations were entirely lost due to a virus attack. The third plantation suffered a 50% loss in produce due to unseasonal rains. The rains after the monsoon withdrawal further hampered the produce,” he said.

Patil said this is the fourth plantation cycle of tomatoes and a monthly one. The disturbed process also hit labour support, which affected the total produce. The demand from other states has also reduced recently, Patil said.

The price of tomato ranged between Rs 10 and Rs 35 a kg across Pune. While in Vadgaonsheri the retail price was Rs 20 a kg, it varied between Rs 10 and Rs 30 in Model Colony, depending upon the quality. In Deccan, the price started from Rs 15 a kg. In Wanowrie, the price hovered around Rs 25 a kg, down by around Rs 10 from last week.

“Rates have been stable around Rs 30 a kg since the past two months. Prices fall once winter sets in but we are not expecting that to happen in another three weeks," said Anup Verma, a retailer at Sus Road in Pune.

Patil said the supply in other states was good and corporate businesses preferred to buy from the nearest markets than approach Maharashtra. Delhi, Mumbai and Kolkata are good markets, but Kolkata recently opted to buy tomatoes from Uttar Pradesh and Bihar since the crop came Rs 4-5 cheaper per crate than from Maharashtra,” he added.

Sadabhau Shelke, a farmer in Nashik, said there was no option but to throw away the recent produce as the rates were not affordable. “Rs 40 per crate is only the post-harvest cost, while the production cost is not counted. Hence, selling this produce would anyway mean we have to incur heavy losses,” he said.

(With inputs from Tarini Puri in Pune)

