Why has the Price of Tomatoes Skyrocketed?

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Why has the Price of Tomatoes Skyrocketed?

August 18: The price of tomatoes, which the farmers had thrown on the streets in a symbolic protest in June because they could hardly cover the production cost, has suddenly skyrocketed to Rs 170 per kilogram.

In mid-June, the farmers were not able to sell tomatoes even for Rs 10 per kg. The farmers then resorted to protest by throwing tomatoes on the street in front of the Kalimati Fruit and Vegetable Market Development Committee.

The main reason for the skyrocketing price is the 'off season' of tomatoes in both India and Nepal. According to the committee's data, the wholesale price of tomatoes produced in tunnel farms, which was not even sold at Rs 10 per kg in mid-June, has now increased by 930 percent to Rs 103 per kg. In the same way, the price of large Nepalese tomatoes has increased by 385 percent from Rs 35 per kg to Rs 170 per kg. This price increase of tomatoes is the highest in the last decade. The small local tomatoes, which was priced at Rs 5 per kg in June, now costs as much as Rs 75 per kg.

Gita Prasad Acharya, President of the Kalimati Fruit and Vegetable Market Traders' Committee, said that due to the off-season of tomatoes in both India and Nepal, the production has decreased and the supply at Kalimati has also decreased. As a result, the price has also skyrocketed.

In addition, after the production of tomatoes decreased in India and the price increased, Nepali farmers have been exporting tomatoes to India get better price.

Acharya said that the supply of tomatoes in the Nepali market is less than the demand and the price has also increased due to the exports of tomatoes to India.

Normally, 60 to 65 tons of toamtoes are brought into the Kalimati market every day. However, now only 35 to 40 tons are being imported.

Until recently, India had banned the import of Nepalese tomatoes in its market. But due to the shortage of tomatoes in India, the Indian government lifted the ban. Due to this, the export of tomatoes has also increased. According to the Ministry of Agriculture and Livestock Development, Nepal has already exported 30 metric tons of tomatoes to India as of August 13.

However, Nepal imports tomatoes several times more than it exports to India. According to the data of the Department of Customs, Nepal exported 1.09 million kg of tomatoes worth Rs 14.9 million in the last fiscal year. During the same period, the country imported 42.15 million kg tomatoes worth Rs 610.8 million.

Naresh Shrestha, a businessman who has been importing tomatoes at the Balkhu market of Kathmandu, said that the price of tomatoes has increased due to the decrease in the production of tomatoes and the export to India. According to him, consumers will get some relief if the government bans the export of tomatoes produced within the country.

He says that India bans export of tomatoes when we need them and lifts the ban when we face shortage.

“This is quite tragic for Nepal,” he said.

 

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