Govt mobile vans start selling tomatoes at ₹60/kg as prices soar

New Delhi: The government on Monday launched a subsidy initiative to allow tomatoes to be sold in the retail market for ₹60 per kg as prices of vegetables soared unabated.

The subsidized tomatoes will be available at National Cooperative Consumers' Federation of India Limited (NCCF) vans in Delhi, Noida and Gurgaon.

Currently, tomatoes sell for ₹80-100 per kg in the retail market.

The scheme, launched by Union food and consumer affairs minister Pralhad Joshi, will be taken to more cities, as was done last year when tomato prices touched ₹250 per kg.

Consumer price inflation rebounded to 5.1% in June, ending a five-month period of easing. This increase was largely driven by a surge in vegetable prices, which saw food inflation rise to 9.4%. Tomatoes, onions and potatoes are the three most commonly consumed food items.

“Subsidized tomatoes will be sold at ₹60 per kg to retail consumers and distribution will be strategically located in high footfall areas,” Joshi said.

“The government is also closely monitoring prices of the staples that surged by double digits in June as extreme heat and floods disrupted production and transportation,” the minister added.

Also Read: Wholesale inflation rises to a 16-month high in June on higher food prices

Cheaper tomatoes will be sold in outlets and mobile vans of the NCCF, which reports to the consumer affairs ministry. Last year, about 60 tonnes of tomatoes, including 10 tonnes imported from Nepal, were sold at cheaper rates through the NCCF.

The government has also procured 500,000 tonnes of onions from farmers, which may be released into the market to help reduce prices for this essential kitchen staple.

Last year, onions were purchased from farmers at ₹17-18 per kg. This year, the procurement price has risen to ₹26-27 per kg.

According to consumer affairs secretary Nidhi Khare, the onion buffer serves two purposes—it supports farmers by providing a stable procurement price and benefits consumers when subsidized onions are released into the market.

As onion prices soared to ₹90/kg, the government began selling subsidized onions at ₹25/kg in 19 cities through its cooperative agencies, starting in August 2023.

Also Read: Tomato and vegetable prices: Cost may ease on supply from Andhra and Karnataka, but rains play spoilsport in Himachal

Currently, the price of onion, a politically sensitive issue, is ₹60/kg in the retail market.

The subsidized tomatoes will be sold at Krishi Bhawan, CGO Complex, Lodhi Colony, Hauz Khas, Parliament Street, INA Market, Mandi House, Kailash Colony, Gurugram, Moti Nagar, South Extension, Rohini, and Noida Sector 14, among other locations.

Consumer Affairs Secretary Nidhi Khare said, "On 26 July, the average retail price of tomatoes was ₹69.74/kg. By 29 July (today), it decreased to ₹64.77/kg, a decline of ₹4.97. Within a week, we expect prices to drop further."

The average retail price of tomatoes is based on price samples collected from 550 centres across the country, covering all states.

In contrast to the average retail price cited above, the retail price at Safal outlets was ₹89/kg on Monday.

"We intervened to ensure that the undue rise in tomato prices is addressed and that traders and retailers do not make windfall gains at the expense of consumers,” Khare added.

Sanganagouda C Patil, a Belgaum-based vegetable trader, told Mint over the phone that prices of tomatoes have come down to ₹30-40/kg in Hubballi, Karnataka.