Why tomato prices in India fluctuate wildly
- infoeconomedia
- Oct 31
- 1 min read
Tomatoes are the drama queens of Indian agriculture—swinging from ₹10 a kilo to ₹200 within weeks. The reason lies in basic supply-chain economics.
Tomatoes are highly perishable and sensitive to weather. A bit too much rain or too little can destroy crops. When that happens, supply crashes and prices shoot up. A month later, when harvests flood the market, prices collapse again.
Farmers often can’t store or transport tomatoes efficiently due to limited cold storage and high transport costs. That’s classic market imperfection—poor infrastructure magnifies natural volatility.
Middlemen play a role too. They often buy cheap during glut periods and hoard stock, releasing it slowly when prices rise. For consumers, the result is a wild roller-coaster ride.
Economically, it’s a case study in inelastic demand and volatile supply—everyone needs tomatoes, but they can’t be stored long. Until India builds stronger farm-to-market systems, tomato prices will keep reminding us just how fragile our food economy really is.
Comments