New Delhi, Nov 26th : .Excessive rainfalls in October in northern India and later in the southern states caused supply chain disruptions, which in turn led to price increases for tomatoes and onions, according to Friday’s government statement. The average Indian retail price for tomato has risen since September 2021, mainly due to unseasonal rainfalls in Punjab, Uttar Pradesh and Haryana.This caused crop damage and delayed arrivals from these states.
Delays in arrivals from the north Indian States were followed by heavy rains, in Tamil Nadu and Andhra Pradesh and Telangana.This disrupted the supply, and also caused crop damage.
According to a Ministry of Consumer Affairs, Food & Public Distribution, the average Indian tomato price was Rs 67/kg as of November 25.This is 63% higher than last year.
Tomato prices are highly volatile because of the possibility of price spikes due to slight disruptions in the supply chain or heavy rains.However, a glut in the market can be caused by logistics issues and bulk arrivals.
According to the Department of Agriculture, the current year’s kharif production at 69.52 LMT compares with the 70.12 LMT last year.This year’s November arrivals were only 19.62 LMT, compared to 21.32LMT last year.The arrival of tomatoes from North Indian states in December will increase availability and cause a drop in prices.It said that December arrivals are expected to be comparable to last year.
The price rise in onion prices during October 2021 is now much lower than the retail prices for 2020 and 2019.On November 25, the average retail price for onion in India was Rs 39/kg, which is 32% lower than last year.
The release stated that the Onion buffer of 2.08 LMT, which was built under the Price Stabilisation Fund, (PSF), has been released in a targeted and calibrated manner to cities/states where prices are rising over the past month, and also to source markets like Lasalgaon or Pimplegaon to increase the availability in these key mandis.
Additionaly, the states/UTs were offered onions at Rs 21/kg ex storage locations.Nagaland and Andhra Pradesh took onions from the buffer.
Safal was also supplied at Rs 26/kg, inclusive of transportation costs.Stability in prices has been achieved through the aggressive release of onion from the buffer.
The Kharif and Late Kharif production is strong at 69 LMT.Harir onion has already begun arriving on the market.
In the Price Stabilisation Fund scheme interest-free advances are made to states/UTs to create state-level Price Stabilisation Funds on a 50/50 basis (75/25 in the case of NE countries).
Six states, viz., Assam and Assam, Tamil Nadu and Telangana, have received the advance.A total of Rs.164.15 crore was released as Central share.These states have the funds to make necessary interventions to control the prices of essential food commodities.The release said that other states were also requested to establish the PSF to allow for state-level interventions to limit price rises in essential food commodities.
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