Pune farmer earns profit of over Rs 2.8 crore by selling tomatoes amid nationwide crisis

India has been grappling with a massive surge in the prices of tomatoes with vendors in some states selling the vegetable at nearly Rs 250 per kg. Retail prices of tomatoes were at Rs 178 a kilogram in Delhi on Sunday, a jump of more than 700% from January 1, according to data compiled by the food ministry. The national average was almost Rs 120 that day.

An eight-fold surge in tomato prices is making some farmers rich, although their windfall gains may be short-lived due to a likely rise in supplies in the next few weeks.

The surge in the prices of the vegetable was caused by heavy rains disrupting supplies, and has hit consumers hard, with many households temporarily doing without tomatoes – an essential element of Indian dishes.

Needless to say, tomato cultivators are a happy lot.

Pune-based Ishwar Gaykar said he and his wife Sonali, who grow tomatoes on 12 acres (4.9 hectares) of land near Junnar in Maharashtra, have made a profit of about Rs 2.8 crore so far in the current season, compared with Rs 1.5 million a year earlier.

The couple, who employ 60 to 70 daily workers to manage the fields, have emerged as one of the biggest suppliers of tomatoes in the region. Ishwar has gained celebrity status as local media outlets are lining up for interviews.

“About one and a half months ago, tomatoes were fetching barely Rs 2.5 a kilogram,” said Ishwar, who suffered a loss of about Rs 2 million rupees in the same season of 2021. “Supply is thin, while demand remains strong.”

The couple have supplied about 350 tons in recent weeks, and expect to sell another 150 tons soon, provided the weather condition doesn’t deteriorate. They reap three harvests every year, with the current crop being 120 to 140 days old.

Vegetable supplies have been hit by transport disruptions following heavy monsoon rains and floods in some regions, and inflation is set to increase as other vegetables have also become more expensive.

The Centre has started selling tomatoes at subsidized rates at many locations, deploying mobile vans to make it easier for buyers. It’s showing some impact, but prices are still very high for consumers in a country of 1.4 billion people.

Tomatoes generally cost more in the monsoon months of July and August, but the spike has been very unusual this year.