Tomato prices crash 65% in a week as drought-hit Nashik farmers face a double blow

Tomato farmers in Nashik are experiencing a double crisis as both drought conditions and a sharp drop in prices have hit them hard. Wholesale tomato prices at Pimpalgaon APMC, one of India's largest markets, have plummeted by nearly 65% in just one week, reaching Rs 111 per 20-kg crate as of Monday. This price drop comes amid an excess supply and weak demand, according to a report by The Times of India.

The decline in wholesale prices is expected to trickle down to the retail market, where tomato prices have already dropped by an average of 50%, from around Rs 40 per kg a week earlier to Rs 20 per kg on Monday. A retailer commented that the market's response may lead to further price correction in the coming days.

Farmers are already grappling with rising cultivation costs, and the current market situation only exacerbates their woes. The APMC witnessed an influx of 3 lakh to 3.75 lakh crates daily over the past week, with supply outstripping demand, leading to rock-bottom prices.

On Monday, prices varied significantly depending on the quality of tomatoes. Poor-quality tomatoes sold for as low as Rs 1 per kg, while premium produce fetched up to Rs 16.55 per kg. Traders anticipate that prices could continue to fall if the trend persists.

Drought conditions and high temperatures have contributed to the accelerated ripening of tomatoes, causing a surge in market arrivals. These factors, coupled with the slowdown in wholesale markets during the Navaratra period and reduced export demand, have further dampened the market outlook for Nashik tomato growers.