 "As rainfall cools down temperatures, now vegetable prices start heating up")
As rains lash north India, tomato prices have surged to Rs 80 per kg in certain retail markets due to heavy rains in Himachal Pradesh that have disrupted the road network, several media outlets reported.
The Consumer Affairs Ministry’s price monitoring division reported that the daily average retail price of tomatoes reached Rs 55 per kg on July 3, up from Rs 35 a month earlier.
The Economic Times reports a similar situation last year triggered by heavy rainfall and flash floods that pushed tomato prices beyond Rs 350 per kg in some retail markets.
On an annual basis, wholesale tomato prices in June dropped by 40 per cent, from Rs 5,680.75 per quintal to Rs 3,368.28 per quintal. However, compared to the previous month, wholesale prices surged by 112.39 per cent, from Rs 1,585.84 per 100 kg to Rs 3,368.28, highlighting volatility.
This issue even led to McDonald’s north India operator temporarily stopping the use of tomatoes in some outlets due to a lack of sufficient quantities meeting their quality standards.
Typically, monsoon seasons cause vegetable prices to spike as rainfall affects harvesting, including plucking and packaging. Additionally, transport disruptions lead to increased vegetable wastage, further impacting prices.
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Tomato prices began to rise in June this year, particularly in southern India, due to extreme heatwave conditions that adversely impacted horticulture crops across various regions of the country.
The heavy rainfall in Himachal Pradesh significantly contributed to the rise in tomato prices. Manoj Kumar, a vegetable trader at Azadpur Mandi wholesale market in the outskirts of Delhi, mentioned, “The supply from Himachal has decreased after the heavy rainfall,” and predicted that prices would rise even more.
Onion and potato prices have also increased
As of June 30, average wholesale onion prices rose by 106 per cent compared to a year ago, from Rs 1,260.66 per quintal to Rs 2,603.55 per quintal. Wholesale potato prices jumped from Rs 1,076.14 per quintal to Rs 2,116 per quintal, an increase of 96 per cent, according to a Hindustan Times report.
In August last year, retail onion prices quadrupled, prompting the government to sell subsidised onions to the public. Onion production dropped by 20 per cent in 2023 due to irregular rainfall. The ongoing effects of a poor monsoon last year reduced the production of rabi, or winter-sown onions, in 2024 by another 20 per cent to 19 million tonnes, compared to 23.7 million tonnes the previous year. Rabi onions are crucial as they supply up to 75 per cent of the country’s annual demand.
The world’s largest onion producer banned exports of the product in December last year, lifting the ban on May 4. Exports were allowed with a 40 per cent duty.
Vegetables have a weight of 6 per cent in the consumer inflation basket. These three items account for 44 per cent of a household’s monthly spending on vegetables, the national daily reported.
Retail prices have also increased. The nationwide modal rate (a type of average) of onion on July 2 was Rs 42.21 per kg, up 81 per cent from a year ago, when the price was Rs 23.29 per kg.
The retail price of potatoes has risen 57 per cent from a year ago, from Rs 21.91 per kg to Rs 34.4 per kg. Consumer prices for tomatoes on June 2 decreased by 15 per cent, from Rs 64.5 per kg to Rs 54.42 per kg. However, compared to a month earlier, the vegetable’s price jumped by 71 per cent, from Rs 31.74 per kg to Rs 54.42 per kg.
Unfavourable weather impacts vegetable price
The India Meteorological Department (IMD) has forecast heavy rainfall in several tomato-growing regions of Himachal Pradesh until July 7, which could worsen the situation by further increasing prices. “The monsoon trough is north of its normal position at mean sea level and a cyclonic circulation lies over Himachal Pradesh,” IMD stated in its weather forecast for the state, warning that this could lead to landslides and mudslides that could disrupt roadways and traffic.
According to the weather office, heavy rainfall not only disrupts transportation but also threatens horticulture and standing crops, which can be damaged by flooding.