Cheer for households: Soaring retail price of tomato, onion, potato expected to cool down soon as supply improves

Retail price of tomato, which soared to Rs 75 per kg in the national capital, is expected to cool in the coming weeks as supply improves from southern states. Prices of potato and onion, which also spiked due to supply disruptions are also expected to stabilise soon. 

“Prices of tomato, potato and onion are ruling high in Delhi and some other cities. Extreme heat followed by spells of excess rainfall disrupted supplies, causing a spike in prices in consuming areas,” a consumer affairs ministry official told PTI. 

According to the ministry data, retail tomato price in Delhi was Rs 75/kg on July 12, down from Rs 150/kg in the year-ago period. In Mumbai, the price was Rs 83/kg, while Kolkata reported it at Rs 80/kg.  

The all-India average retail price of tomato stood at Rs 65.21/kg on July 12, compared to Rs 53.36/kg last year. 

Currently, tomato supplies to Delhi mainly comes from Himachal Pradesh and Uttarakhand. “Prices will start easing as hybrid tomatoes from Andhra Pradesh and Karnataka reach the national capital,” the official said. 

The government has no plans to reintroduce subsidised tomato sales, a measure implemented last year when the price exceeded Rs 110 per kg.  

The official noted that the country has 283 lakh tonnes of stored potato, sufficient to meet domestic demand despite a lower production compared to the previous year.  

Onion prices, which have eased in Maharashtra’s wholesale markets, are expected to decline further with the arrival of the new crop in September. 

Heavy rainfall has disrupted the supply of tomatoes, potatoes, onions, and green vegetables in key consuming areas, leading to price hikes across metros. 

In Delhi, retail potato price was Rs 40/kg on July 12, up from Rs 25/kg last year, while onion price increased to Rs 57/kg from Rs 33/kg. 

The government remains optimistic about price stabilisation in the coming weeks, provided there is no further disruption due to adverse weather conditions. 

In Maharashtra, prices were Rs 72.47/kg, while the retail price stood in West Bengal at Rs 71.35/kg on July 13, according to data from the Department of Consumer Affairs’ Price Monitoring Division. 

Retail inflation spikes 

Retail inflation rose to a four-month high of 5.08 percent in June, driven by increased prices of food items, particularly vegetables, according to government data released on July 10. 

The Consumer Price Index (CPI), which measures retail inflation, had been declining since January before experiencing an uptick in June. 

Inflation in the food basket rose to 9.36 percent in June, up from 8.69 percent in May, according to data from the National Statistical Office (NSO). 

In June, the highest inflation rates were recorded in vegetables at 29.32 percent, followed by ‘pulses and products’ at 16.07 percent on an annual basis.