Ground report | How gamblers pull the strings to trigger rise in tomato prices at Kolar
Satta or Matka gambling has allegedly commenced in Karnataka’s Kolar tomato wholesale market, which is purportedly contributing to the continuous surge in tomato prices. It is believed that this underground gambling operation, which traces its connection to Maharashtra, plays a role in setting the prices for a given day, and indirectly determines the daily price of tomatoes. Sources claimed that individuals involved in this illicit gambling activity exert indirect control over the market, with allegations of involvement of local politicians and officials.
A distributor, who doesn’t wish to be named, told The Federal that bets are placed based on the opening and closing rates of tomatoes traded each day. Notably, this gambling network also has connections with the Nashik market, where numerous punters are involved, resulting in a substantial business worth lakhs of rupees.
Kolar market: A gambling hub?
A farmer activist said that the Kolar market has become a gambling hub, with the quantum of bets increasing daily. These illicit operators determine the daily tomato prices and engage in unlawful gambling activities, effectively running an illegal business. To facilitate the gambling process, they have introduced a two-card system that is opened twice a day, in the morning and evening. The average number revealed through this system serves as the winning point for the bettors, he said.
Also read: Ground report | As tomato prices hot up, Kolar mafia laughs all the way to the bank
Simultaneously, they engage in daily tomato rate betting, with stakes ranging from Rs 1,000 to Rs 2,000. However, the prices skyrocket rapidly, with Wednesday witnessing a surge from Rs 2,000 to Rs 2,500 per box (15 kg of tomatoes). This betting market directly impacts tomato prices, and sources within the Satta market predict that the prices will further increase, reaching Rs 2,500 by the end of this week. “The increase in the tomato price is unavoidable and there seems to be no intervention from government officials or the police to regulate this,” an insider from the Satta market said.
Even the Mandi owners, who purchase tomatoes from farmers or middlemen and distribute them to vendors, participate in the Satta market. Some of them place bets on the daily tomato prices, and if they win, they reserve at least 10 boxes out of 100 for themselves; it increases their profits further. Also, the involvement in Satta baazi (betting) enables them to easily transport their stock to other states, a source said.
Neighbouring states capitalise on Kolar
As the Kolar tomato market gains national prominence, tomato growers from neighbouring states such as Andhra Pradesh, Telangana, Tamil Nadu, and Kerala are flooding the market with their produce. These regions offer lower rates and superior quality due to the absence of Leaf Curl disease, incentivizing growers to transport their tomatoes to Kolar in search of better prices. The Federal witnessed a significant influx of trucks arriving in Kolar to sell their tomatoes at favourable rates.
Also read: Ground report | Why tomato prices shot up in Kolar, and across India
The tomato growers and middlemen from the neighbouring districts of the above-mentioned states have established connections with the distributors in the Kolar market, aiming to secure good prices for their produce. They often sell their tomatoes at Rs 1,000 per box (15 kg) when the actual market price is Rs 1,500.
While they may appear to be selling at a lower price, they still manage to generate good profits compared to their local markets. This practice has resulted in a price surge in their own tomato-growing regions as well. Raje Gowda, a Mandi owner, told The Federal that they successfully sell their products at profitable rates to other traders and distribute them to northern states via the Kolar Market.
Coming soon: Kolar tomato farmers eye shift to other crops
