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Unlike grains, tomatoes don’t have guaranteed MSP, leaving farmers exposed to market fluctuation. Without government intervention, growers have little protection against rate crash
The crash in tomato prices is not just an individual farmer issue — it reflects larger vulnerabilities in India’s agricultural economy, especially for perishable crops. (PTI Photo)
Just weeks ago, tomatoes were a luxury for consumers, with prices soaring high enough to make many households cut down their daily intake. Today, the scenario has flipped — leaving farmers, not buyers, in despair. In Andhra Pradesh’s major tomato markets, including Pathikonda in Kurnool district and Papili in Nandyal district, prices have plunged dramatically to Rs 4-Rs 6 per kg, triggering financial distress among cultivators who had invested heavily in the crop.
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Tomatoes are among India’s most widely cultivated vegetables, with Andhra Pradesh, Karnataka, Maharashtra, and Odisha contributing significantly to the country’s supply. The vegetable is perishable, with a short shelf life, making farmers highly vulnerable to market fluctuations. For small-scale growers, a sudden drop in prices can wipe out entire earnings for the season.
Harvesting Costs Outweigh Returns
For many tomato farmers, harvesting and selling the crop has become economically unviable. Harvesting labour costs Rs 300-Rs 400 per day, and transportation adds another significant expense. By the time tomatoes reach local markets, farmers often recover only Rs 400–Rs 500 per 100 kg — far below the Rs 1,000 invested in cultivation and logistics.
Faced with these losses, many cultivators are abandoning ripe tomatoes in their fields, unable to bear the financial burden. “It is heartbreaking,” says a farmer from Papili. “We worked hard all season, but selling the tomatoes now only adds to our losses. Leaving them in the field seems better than harvesting at a loss.”
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Why Are Prices Plummeting?
Experts point to several interconnected reasons behind the sudden collapse:
Oversupply in Markets: A bumper tomato harvest across several states has flooded markets, creating a surplus. When supply exceeds demand, prices naturally fall, hitting farmers the hardest.
Rising Transportation Costs: High fuel prices and logistics challenges have increased the cost of moving crops from farms to markets. Even at low selling prices, farmers cannot recover their expenses.
Weak Export Channels: Unlike wheat or rice, perishable vegetables like tomatoes are rarely exported in significant quantities. The lack of encouragement for exports leaves domestic markets oversupplied.
Lack of Minimum Support Prices (MSP): Unlike staple grains, tomatoes do not have guaranteed MSP, leaving farmers exposed to market fluctuations. Without government intervention, growers have little protection against price crashes.
What’s The Broader Impact?
The crash in tomato prices is not just an individual farmer issue — it reflects larger vulnerabilities in India’s agricultural economy, especially for perishable crops. Tomatoes are a staple ingredient in Indian kitchens and a key cash crop for farmers. Yet the lack of cold storage facilities, proper logistics, and market stabilisation mechanisms repeatedly forces farmers into distress.
If unaddressed, such situations can discourage farmers from growing tomatoes in the next season, affecting overall supply and leading to unpredictable price swings for consumers.
Calls For Government Intervention
Farmers and experts are urging the government to:
- Set up cold storage units to store excess crops and prevent wastage.
- Strengthen market linkages so that produce reaches buyers efficiently.
- Encourage exports to reduce oversupply in domestic markets.
- Consider MSP for perishable vegetables, providing a safety net against price crashes.
“These steps are critical not just for financial relief, but to restore confidence among farmers,” says an agricultural economist.
From Boom To Bust: A Recurrent Cycle
The tomato market is notorious for wild price swings. In recent months, tomatoes have sold for as high as Rs 150 per kg, making them almost unaffordable for everyday consumers. Now, the price collapse highlights the fragility of the vegetable market, where small miscalculations in supply, coupled with infrastructure gaps, can lead to massive losses for cultivators.
The current situation is a stark reminder that farmers’ struggles are not only financial — they are also emotional. Years of labour, investment, and care can be undone by market volatility in a matter of days.
About the Author
Shilpy Bisht, Deputy News Editor at News18, writes and edits national, world and business stories. She started off as a print journalist, and then transitioned to online, in her 12 years of experience. Her prev…Read More
Shilpy Bisht, Deputy News Editor at News18, writes and edits national, world and business stories. She started off as a print journalist, and then transitioned to online, in her 12 years of experience. Her prev… Read More
September 15, 2025, 13:36 IST
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