Price of tomatoes will remain elevated for two more months

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Price of tomatoes will remain elevated for two more months

The cost of tomatoes will continue to be at elevated levels for two more months as a result of the wayward and excess rains, according to Crisil Research on Friday.

The situation in Karnataka, one of the major tomato growing regions, is so grim that the vegetable is being sent from Maharashtra's Nashik, pointing to on-ground interactions.

The standing crops damaged because of excess rains in Karnataka 105 per cent above normal Andhra Pradesh 40 per cent above normal and Maharashtra 22 per cent which are key suppliers during the October-December period, according to Crisil Research.

Prices have gone up 142 per cent as on November 25 and will remain elevated for two more months until harvest from Madhya Pradesh and Rajasthan starts reaching the markets from January, it said.

It said that tomatoes are selling at Rs 47 per kg and the price will decline by 30 per cent once the fresh arrivals start.

In the case of onion, the report said that transplanting was delayed in key growing regions of Maharashtra because of deficit rains in August, which in turn delayed arrivals in October, leading to a 65 per cent increase in onion prices compared to September.

Fresh arrivals from Haryana are expected to start in 10 -- 15 days, which will cool the prices.

It said that the planting season for potato, another rabi crop, has been hit hard because of excessive rains in Uttar Pradesh, West Bengal, Bihar and Gujarat.

The researchers suggest excessive water logging in the fields may warrant the resowing of potato tubers, adding to the cost of farmers. It said that if the heavy rains continue, prices will be higher for two more months.

It said that heavy rains have been hit in production regions like Andhra Pradesh and Gujarat and that the prices of okra or lady finger will start easing in the next three weeks.

The production of other vegetables, including capsicum and cucumber, has also been hit, it said.

Net-net, any respite in vegetable prices in the short-term, will be a function of how it pours from here. As the north-east monsoon beats a retreat, the worst may be over for vegetable prices, it said.