Tomatoes to remain costly for another two months, says CRISIL

The price of tomato, already quite high, is likely to stay elevated for two more months, ratings agency CRISIL has said.

Tomatoes account for 10 per cent of the total vegetable production in India. “With standing crops damaged by excess rains in Karnataka, Andhra Pradesh and Maharashtra, which are key suppliers of tomato during October to December, supply is down materially,” the agency said, according to an IANS report.

Ground surveys indicate that the situation is so grim in Karnataka that tomatoes are being sent from Maharashtra’s Nashik, it added.

“Not surprisingly, prices of tomatoes have increased 142 per cent on-year as of November 25 and are expected to remain elevated for the next 45 to 50 days till the harvest from Madhya Pradesh and Rajasthan reach markets across the country beginning January,” the agency noted.

In addition, prices of onion are expected to decline in the next 10 to 15 days when newly harvested produce reaches markets in northern India.

“Transplanting was delayed in the key growing regions of Maharashtra because of deficit rains in August. That delayed arrivals in October, leading to a 65 per cent increase in onion prices compared with September,” CRISIL said.

On the contrary, potato prices are likely to rise in the next couple of months as heavy rains may affect sowing and subsequently the yield.