The government is considering purchasing tomatoes directly from farmers in areas where prices have significantly dropped because of an abundant harvest, resulting in an oversupply in the local market.
Sources indicate that the Price Stabilization Fund (PSF) of the Consumer Affairs Ministry will be deployed to procure the produce. This initiative aims to offer assistance to struggling farmers who have resorted to using their crops as livestock feed due to prices failing to cover transportation expenses in certain regions.
The states of Maharashtra, Karnataka, and Andhra Pradesh have experienced the most severe impact, as an exceptional harvest has led to an oversupply in the market. Prices tumbled to as little as INR 3-10 per kilogram last week, contrasting sharply with the INR 250 per kilogram peak witnessed in August when heavy rains damaged crops and caused a scarcity in the market.
As per data collected by the National Horticulture Board, the mean wholesale and retail prices of tomatoes stood at approximately INR 30 and INR 16 per kilogram, respectively, in various regions of the country on Tuesday.