From today, the government will sell tomatoes across Delhi at ₹65 per kilogram

(MENAFN – Live Mint) The government will start selling tomatoes at a subsidized rate of ₹65 per kilogram from today to provide consumers with some relief from the high prices of kitchen staples during the festive season, according to a senior government official.

The move is aimed at stabilizing tomato prices, which have risen to an average of P100 per kilogram and even more in some regions.

The subsidized tomatoes will be available in the National Cooperative Consumer Federation of India Ltd (NCCF) vans in Delhi, Noida and Gurugram.

Union Consumer Secretary Nidhi Khare will launch the scheme which will be extended to more cities, similar to what happened in 2023 when tomato prices touched ₹250 per kg.

The government’s intervention stems from concerns about high food price inflation, which rose to 5.66% in August from 5.42% in July. The prices of tomatoes, onions and potatoes, essential foodstuffs in Indian households, significantly affect the cost of a home-cooked meal.

Read also: The holiday season increases consumer spending in smaller cities

According to an October 4 report by credit ratings agency Crisil, the cost of home-cooked vegetarian thali increased by 11% year-on-year (y-o-y) in September, driven by rising vegetable prices.

Vegetable prices continued to fluctuate in September, with onions and potatoes recording significant increases. Onion prices increased by 53% and potatoes by 50% year-on-year due to lower supplies.

This is the second government intervention, selling tomatoes at reduced prices. The Center took a similar initiative on July 29 when tomato prices increased to ₹80-100 per kg. At that time, tomatoes were sold at ₹60 per kg.

In 2023, approximately 60 tons of tomatoes were sold through the NCCF at lower prices, including 10 tons imported from Nepal.

Food inflation rose to 9.36% in June, 8.69% in May and 8.70% in April.

Read also: August inflation: What do the CPI data tell us beyond the base effect, in the charts

Subsidized onion

The government also sells subsidized onion at ₹35 per kg through NCCF and NAFED vans across the country.

The government has a buffer stock of 4.7 lakh tonnes. From these stocks, it releases onions to wholesale markets to control the increase in prices of this staple food.

In 2023, onions were purchased from farmers at ₹17-18 per kg. This year, the purchase price increased to 26-27 pounds per kg.

Khare recently told Mint that the onion buffer serves two purposes: it supports farmers by ensuring a stable procurement price and benefits consumers when subsidized onions are released in the market.

Also read: Government will pull railways to stop sky-high onion prices

As onion prices have increased to ₹90 per kg, the government has started selling subsidized onion at ₹25 per kg in 19 cities through its cooperative agencies from August 2023.

The subsidized tomatoes, which will be available at various locations in Delhi including Krishi Bhawan, CGO Complex, Lodhi Colony, Hauz Khas, Parliament Street and INA Market among others, are priced based on average retail prices collected from 550 centers across country.

MENAFN07102024007365015876ID1108751817

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We are not responsible for the accuracy, content, images, videos, licenses, completeness, legality or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, please contact the provider above.