46% households surveyed are now paying over INR 150/kg for tomatoes; 14% have stopped buying them and 68% have reduced consumption

July 15, 2023, New Delhi: Over the last three weeks tomato prices have seen several fold increases in different cities, not just in retail markets but also in wholesale markets, across the country. In Delhi, the prices have risen from INR 20-30/kg on June 24 to INR 180/kg and even INR 220/ kg for some varieties or good quality. In most other cities and in some cases of the country like Tamil Nadu and Kerala, tomatoes now cost over INR 180/kg. Some varieties are more expensive than others. For instance, prices of ‘desi’ tomatoes have risen to INR 180-250/kg in some cities while hybrid and green varieties are cheaper. Some of the online platforms are offering hybrid and green varieties in the range of INR 150 to 180/kg.

Finally responding to the steep rise in tomato prices, the Department of Consumer Affairs has directed National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers Federation (NCCF) to immediately start procurement of tomatoes for simultaneous distribution in major consumption centres where retail prices have recorded maximum increase in the last one month. These supplies, though limited in availability have started selling tomatoes for INR 90/kg from Friday July 14th in Delhi.

As consumers took to LocalCircles and broader social media to voice their discontent about continually spiking tomato prices, LocalCircles conducted another survey to find out how much are households having to pay to buy tomatoes and if they have started cutting down the consumption of this vegetable, which is used in many ways to add flavor to the food besides being eaten raw as salad. The survey received over 22,000 responses from citizens located in 342 districts of India. 65% respondents were men while 35% respondents were women. 42% respondents were from tier 1, 34% from tier 2 and 24% respondents were from tier 3, 4 and rural districts.

87% of consumers surveyed confirm that they have been paying more than INR 100/kg for tomatoes during their latest purchase

The survey first asked household consumers, “What best describes the price for tomatoes that your household paid most recently?” This query received 10,972 responses with 41% stating that they are paying between INR 100-150 per kg; 27% stated they have been paying INR 150-200/kg; 14% of households surveyed have been paying INR 200-250/ kg and 5% stating over INR 250/kg. The survey responses show that 13% of households have been fortunate enough to buy tomatoes for less than INR 100/kg. In sum, 87% of consumers surveyed confirm that they have been paying more than INR 8100/kg for tomatoes during their latest purchase and 46% paid over INR 150/kg.

Percentage of households having to pay over INR 100/kg has risen from 18% on July 27 to 87% on July 14

A comparative study with an earlier survey shows that as against 18% households which were paying more than INR 100/kg for tomatoes on June 27, the percentage of households affected has risen to 87% on July 14. Due to limited supplies, good tomatoes at lower prices are hard to get. In some areas, ironically even outside the wholesale mandi, it is hard to get good tomatoes at lower prices.

68% of households surveyed indicated that they have reduced consumption of tomatoes while 14% have just stopped consumption

Given that most households prefer to keep their expenses within the budget, the survey then asked respondents “How have you been coping with the excessive tomato prices?” Out of 11,550 respondents to this query, 68% indicated that they have reduced consumption of tomatoes, while 14% have stopped buying tomatoes. The data shows that while 14% of households surveyed have stopped consuming tomatoes; 35% have reduced consumption significantly; 33% have reduced it partially and only 16% have kept consumption the same and paid more to buy tomatoes.

In summary, while 87% of consumers surveyed confirm that they have been paying more than INR 100/kg for tomatoes during their latest purchase, only 13% are paying less than INR 100/kg, possibly in rural areas or areas where tomatoes are grown. The situation is so bad that 14% of household consumers surveyed have stopped buying tomatoes while 68% have reduced their consumption. Intervention through NAFED and NCCF could have happened earlier too, before prices spiraled and imports could have been planned to avoid the squeeze that many households have experienced across the country. The hope is that lessons are being learned and the administrators will be more proactive on the next commodity or next time something similar happens. For now, the tomato continues to stay in limited supply for majority of the country’s households.