Tomatoes stoke fresh fears of food inflation spike this month

Vegetable seller in Delhi faces price surge, tomato prices hit ₹120/kg, government intervenes with ₹65/kg sales.

Last Tuesday, Umakant, a vegetable seller in South Delhi’s Prakash Mohalla, who buys his stocks from the Okhla Mandi, witnessed many potential buyers turn away, as prices of many vegetables, had risen sharply, led by a spike in prices of tomatoes that he was selling at ₹120 per kg.

Retail tomato prices had jumped 233% in July relative to June, but eased about 23% in August, bringing some relief. However, the excess rainfall in September has sparked a fresh challenge with Mandi arrivals more than halving from August.

On a year-on-year basis, vegetable inflation shot up to a 14-month high of 36% in September. For tomatoes, the situation appears worse since the initial days of October, pushing the key kitchen staple beyond the ₹100-a-kilo mark in many cities of the country, even as onion and potato prices continue to pinch.

On October 7, the Centre intervened in the market, launching tomato sales at ₹65 per kg in Delhi NCR. The Consumer Affairs Ministry termed the price rise “unwarranted” and pointed to the ‘possible role of market intermediaries’ amid ‘this high demand festive season’.