The real price of tomato farming

Tomato traders from across India flock to Kolar, Karnataka. Prices have skyrocketed to unprecedented levels, with a 15 kg box selling for ₹2,200. Farmers are suffering losses due to leaf curl disease, with yields reduced by 30-40%. Input costs have also increased, leading to further losses. The Union govt. and some states are procuring tomatoes from Kolar to sell at subsidised rates. Farmers are protesting for a regulatory framework to hold seed and pesticide companies accountable.

Ramaraj, a wholesale tomato trader from Kanpur, Uttar Pradesh, has been camping in Kolar in south Karnataka, which has now turned into a bustling centre for tomato procurement for the entire country after the crop failed in Maharashtra and elsewhere. But he is yet to make significant purchases, given the unprecedented price of the produce in the Kolar market. A 15 kg box of tomatoes was sold at ₹2,200 on July 11 at the yard, which traders believe is the highest ever since the market’s inception.

At the Kolar yard, buyers come from across the country. They have been camping here for over a month now, procuring tomatoes for states as far as West Bengal, Uttar Pradesh, Madhya Pradesh, Rajasthan, and Gujarat, apart from neighbouring states like Andhra Pradesh and Tamil Nadu.

Karnataka, particularly Kolar, whose market is the second largest tomato trading centre in Asia, has the largest supply of tomatoes in the country now. However, it is sparse compared to previous years. The situation has turned so precarious that the Union government and some states like Tamil Nadu have had to procure tomatoes in the open market, mainly from Kolar, and sell them at subsidised rates. 

“A 15 kg box of tomatoes has been trading at over ₹2,000 for over a week. Sending them across to Kanpur, bearing the additional cost of nearly ₹13 per kilo, only leads to losses. Due to high prices, demand for tomatoes has fallen back home. I have adopted a wait-and-watch approach to see if prices stabilise,” Ramaraj said. 

But Rashid Bhai from the nearby Jhansi and Manoj Mishra from Jabalpur, Madhya Pradesh, have been sending a few loads of tomatoes home. “The price of tomatoes back home has touched ₹200 per kilo in the retail market, and the demand has fallen. This season has become unviable,” Rashid said. 

This comes amidst not only rising prices but also allegations of traders hoarding tomatoes, artificially jacking up prices for buyers, even as they purchase at lower prices from farmers. The cost of tomatoes has shot up to such unprecedented levels that multiple “tomato heists” have been reported, restaurants have cut down on the use of tomatoes, and people have taken to using alternatives like tamarind, mango, and lemon for sourness in cooking at homes in Karnataka. 

However, in Kolar, too, the crop is ravaged by leaf curl disease, and the yield is only 30-40% of the usual. Compared to previous years when the market was jam-packed during this time of the year, the arrivals at the market are sparse. This has driven prices to unprecedented levels.