Question:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC
DISTRIBUTION be pleased to state:

(a) the details of the factors contributing to the expected drop in tomato prices next month, the key
drivers behind this projected decrease;

(b) measures taken by Government to monitor and regulate tomato prices to ensure affordability for
consumers;

(c) the projected impact of the anticipated drop in tomato prices on farmers’ income and livelihoods;

(d) plans to support farmers and ensure their fair and remunerative participation in tomato market,
especially during periods of price fluctuations; and

(e) steps being taken by Government to enhance post-harvest infrastructure, storage facilities, and
transportation networks to minimize wastage and ensure a smooth supply of
tomato to the market?

Answer

(a) : The prices of tomato is expected to come down with the increase in arrival of new crop from
Nasik, Naryangoan and Aurangabad belt in Maharashtra and also from Madhya Pradesh.

(b) : The Department of Consumer Affairs monitors the daily prices of 22 essential food commodities
including tomato. In order to check the current increase in prices of tomato and make it available to the
consumers at affordable prices, the Government has started the procurement of tomatoes under Price
Stabilisation Fund and is making it available at a highly subsidised rate to consumers. The National
Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing
Federation (NAFED) are continuously procuring tomato from mandis in Andhra Pradesh, Karnataka and
Maharashtra and making it available at affordable prices in major consuming centres in Delhi-NCR,
Bihar, Rajasthan, etc. after subsidizing the price to the consumers. The tomatoes have been disposed
initially at retail price of Rs.90/kg which has been reduced to Rs.80/kg from 16.07.2023 and further
reduced to Rs.70/kg from 20.07.2023.

(c) and (d) : Current increase in tomato prices may incentivize farmers to grow more tomato crop
which is expected to stabilize the prices in coming months. The Department of Agriculture & Farmers
Welfare (DAFW) implements Market Intervention Scheme (MIS) to protect the growers of perishable
agri-horticultural commodities from making distress sale in the event of a bumper crop during the peak
arrival period when the prices tend to fall below economic levels and cost of production. Under the
scheme, the loss on account of the fall in price is borne between the Central Government and State
Government on 50:50 basis. Since the inception of MIS till date, the Department of Agriculture and
Farmers Welfare has not received any proposal from State Governments for market intervention to
address distress sale of tomato.

(e) : Ministry of Food Processing Industries implements Operation Greens for enhancing value
addition and reduction in post-harvest losses of agri-horticultural commodities, including tomato. The
objectives of the scheme are (i) enhancing value realization of produce for farmers; (ii) protect the
growers from making distress sale; (iii) increase in food processing/preservation capacities and value
addition; and (iv) reduction in post-harvest losses. The scheme has both short-term interventions
component and long-term interventions component. The short-term interventions include transportation
and storage subsidy to individual farmers, group of farmers, farmer producer organisations, farmer
producer companies, cooperative societies, State Marketing and Co-operative Federation, food
processors, licensed commission agents, exporters and retailers etc. Under the long term interventions,
grants-in-aid are being provided for Integrated Value Chain Development Projects and Stand-alone PostHarvest Infrastructure Projects.