Jaden Paul | August 31, 2023

Buyers in Chennai’s Koyambedu market, one of Asia’s largest wholesale markets, were relieved after tomato prices fell a little over 83% month-on-month to Rs.33.3 per kilogram (kg), after reaching an all-time high in July this year.

Tomato prices in the market dropped to Rs.100 per 3 kg in August after selling for Rs.200 per kg in July. Prices settled at Rs.70 per kg on August 19, and fell further the following week, after rising continuously in July this year, sellers said.

Thyagarajan K., a seller, said that the irregular supply of tomatoes from Karnataka caused prices to rise. He added that fewer people were buying tomatoes.

The situation improved in August with a steady supply from Karnataka. The primary reason behind the significant drop in tomato prices was the increased supply, according to sellers. The plunge in tomato prices is due to a fall in demand in north India, analysts told The Economic Times (ET). It stemmed from the import of tomatoes from Nepal. Weather patterns over the summer along with a delayed rainfall caused a crop shortage, pushing tomato prices up, ET said.

Surging tomato prices drove Tamil Nadu’s Consumer Price Index (CPI) from 185.1 in May 2023 to 202.2 in July 2023, according to Ministry of Statistics and Programme Implementation (MoSPI) data. The rush of customers and excitement around purchase of tomatoes contrasts the situation in July where global fast-food chains like McDonald’s were also being forced to abandon tomatoes.