Tomato prices will remain skyrocketing for another two months: Crisil

MUMBAI: Frequent and excessive rains have caused severe damage to various vegetables and crops and this has naturally led to new highs in prices. Tomato prices are likely to remain high for another two months. This is the finding made by Crisil Research today.

It is learned that Karnataka has the highest production of tomatoes in India and the situation there is very 'scary' so vegetables are sent there from Nashik in Maharashtra. According to Crisil Research, additional rains in Karnataka have damaged standing crops.

Karnataka received 105 per cent more rainfall than normal, Andhra Pradesh received 40 per cent more rainfall than normal and Maharashtra received 22 per cent more rainfall during the October period, causing damage to crops and vegetables.

On November 25, vegetable prices rose 142 percent. It will take another two months for new vegetables to arrive from Madhya Pradesh and Rajasthan. The new vegetables hit the market in January, the report said. At present, tomatoes will be sold at Rs 47 per kg in the market till the new vegetables come in the market, which will be reduced by 30 per cent, it added.

Speaking of onions with tomatoes, the report said that the lack of rains in the onion ripening areas of Maharashtra in August had delayed the transportation of onions. This led to a 65 per cent rise in onion prices in September.

However, in the case of onions, its new crop from Haryana will arrive in 10-15 days, after which onion prices are likely to decline. Excessive rainfall has also affected the potato sun crop in Uttar Pradesh, West Bengal, Bihar and Gujarat. Its sowing has been delayed.

Researchers' on-the-ground interactions suggest that over-watering the fields may result in replanting of potatoes at the expense of farmers. If heavy rains continue, prices will remain high for the next two months, it said.

Okra will be readily available in the next three weeks. It was sown in heavy rains and this affected its production in states like Andhra Pradesh and Gujarat. Production of other vegetables, including capsicum and cucumber, has also been affected by the rains.