As rain disrupts supply chain in key states, veggie prices start pinching: Vegetable prices surge

Vegetable prices have seen a sharp increase over the past month due to heavy rainfall in key production areas, which has damaged crops and disrupted transporatation, according to traders at Azadpur Mandi, the largest wholesale market for fruits and vegetables in Asia.

Heavy rainfall disrupts supply chains

The price hike follows intense rainfall in major agricultural states like Maharashtra, Himachal Pradesh and Andhra Pradesh. Prices of essential vegetables like onions and tomatoes have risen to Rs 70 per kg in many metro retail markets, while green vegetables such as capsicum, spinach and gourd are being sold at around Rs 100 per kg, the report said.

Government data shows that on September 25, the modal price of onions had climbed to Rs 53.46 per kg, marking a 16.55 percent increase from Rs 46 the previous month. Similarly, the price of tomatoes grew by 9 percent, rising from Rs 46 per kg to Rs 50 per kg during the same period.

Vegetable prices tend to rise during the monsoon as rain affects the harvesting process, including plucking and packaging. Transport disruptions further worsen the situation by leading to increased spoilage. This year, a heatwave also contributed to crop damage in key production regions, the report said.

The government may sell tomatoes through mobile vans

With tomato prices climbing in both retail and wholesale markets, the government may intervene by selling tomatoes through mobile vans, as it did previously. Nidhi Khare, secretary of the Department of Consumer Affairs, said that the situation is being monitored and the department will intervene if necessary. Khare mentioned that prices are expected to stabilise soon, as there are no significant supply issues with onions and tomatoes.

However, farmers and traders pointed out that the sowing of kharif tomatoes is lagging behind last year’s levels in Andhra Pradesh, Gujarat, Maharashtra, and Chhattisgarh. In Maharashtra, pest and disease infestations have exceeded economic threshold levels, further reducing supply, the report said.

Regarding onions, Khare mentioned that the government would begin offering them at lower prices nationwide this week. If prices continue to rise in key producing regions like Nashik, the government will release more onions from its stock to stabilize the market, the report said.

The Ministry of Consumer Affairs, Food, and Public Distribution began releasing onions from its 470,000-tonne buffer stock on September 5, when prices first started increasing. However, following the lifting of export restrictions, prices began rising again.