As rains heavy rains pour over the Indian subcontinent, we are slowly moving our next food problem – vegetable prices inflation. 

Retail prices for tomatoes are exceeding Rs 100 across various cities in India. Ranchi, for instance, saw tomato prices between Rs 110-120 per kilogram. Chennai reported that tomato prices have reached Rs 100 already. 

Vijayawada, which is a major hub of regional vegetables supply, also reported steeply rising tomato prices. The prices went from Rs 24 a kg to Rs 70 a kg almost overnight. Meanwhile, local traders warn of prices exceeding even Rs 80 in the wholesale market.

Heavy rains are no doubt one of the major reasons why this situation has exacerbated. If we look northward, excessive rains have had adverse effects in Himachal Pradesh and Kashmir. Tomato farmers have experienced major crop damage due to flooding and excessive rain. Even post-harvest losses for off season farmers are reported to have gone up. Lahaul and Spiti region are also witnessing major rainfall and landslides, which is not only affecting farmers but also the trade routes and road connectivity. 

As a result, prices in the national capital region reached Rs 85 a kg last week, and are not coming down anytime soon. The government was quick to blame the heavy rains. It instructed the National Cooperative Consumers’ Federation Of India (NCCF) to procure tomatoes from Azadpur Mandi from August 4 onwards and sell them to consumers at prices with minimal margins. The NCCF reportedly has sold over 2.7 tonnes in the open market in Delhi at retail prices ranging from Rs 47 to Rs 60 per kg. 

Meanwhile, the state of tomato farmers grows worse. In the month of June tomato farmers were fetching as low as Rs 8 and high of Rs 15, reportedly. Farmers were forced to dump the tomato harvest and even the cost of production was not covered. The major chunk of profits appeared to go to the middlemen or trading companies who were anticipating the price rise in the monsoon months. 

After having suffered major backlash due to the previous years' experiences, the government this time failed to cushion the blow or even crack down on oppressive middlemen or traders. 

For the past couple of years, food price inflation and, in particular, vegetable price inflation has rocked the government and householder food budget. In 2023, reports said that tomatoes prices overtook petrol prices in major cities across the country. 

But it is not tomatoes alone, price of other vegetables like onions, drumsticks, etc. have also reported a sharp increase in Chennai and other cities in the country. 

The government has already released additional buffer stock of 3 lakh tonnes of onions to stabilise the prices in major urban centres.

But onion farmers suffer worse fates than tomato farmers. Reports say, onion farmers have demanded a minimum support price of Rs 3,000 per quintal as onion prices fall 15% in Maharashtra’s Lasalgaon, which is a major onion-growing region. The farmers were getting about Rs 1,275 per quintal of onion. The government flip-flop on the export policy is one of the major causes for the price volatility, along with vagaries of the weather. 

The way out 

If erratic rain and climate change are the two major reasons, as per the government, which are driving the prices high, the question is, where are our advance weather monitoring and forecast systems? The Modi government has been proudly parading our advances in weather monitoring. Why has the government not used these systems to predict, warn and prevent these losses? 

Instead of blaming the weather, the government needs to have more regional and sub-regional infrastructure to store vegetables and make them available during the monsoon season. 

Offering higher MSP backed by government procurement is a guaranteed solution. It helps farmers and consumers, both. So why doesn’t the government create and bolster this procurement and distribution system?

It has been over a decade since the Modi government has come to power. If we cannot supply staples to our population during this "Amrit Kaal", how can we think of becoming a Vishwaguru with a malnourished population? 

Indra Shekhar Singh is an independent agri-policy analyst and writer.

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