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Tomato prices surge 24% as weather hit supplies squeeze markets; relief unlikely before August - BusinessToday
Business Today Desk · 2026-06-25 · via Business News India: Latest Business News Today, Share Market, Economy

Tomato prices have risen sharply across India as production losses caused by heat waves and erratic monsoon rains disrupted supplies from major growing states such as Maharashtra, Karnataka and Uttar Pradesh.

Tomato prices surge 24% as weather-hit supplies squeeze markets; relief unlikely before AugustAccording to the Department of Consumer Affairs, the average retail price of tomatoes touched ₹43.70 per kg on Wednesday, up 24% from a year earlier and 26% higher than a month ago.

Weather disruptions, lower arrivals from key producing states and seasonal supply gaps have pushed tomato prices sharply higher, with experts warning that consumers may have to brace for elevated rates for several more weeks.

Tomato prices have risen sharply across India as production losses caused by heat waves and erratic monsoon rains disrupted supplies from major growing states such as Maharashtra, Karnataka and Uttar Pradesh.

According to the Department of Consumer Affairs, the average retail price of tomatoes touched ₹43.70 per kg on Wednesday, up 24% from a year earlier and 26% higher than a month ago. Market participants expect prices to remain firm until fresh arrivals improve after the monsoon.

MUST READ: Falling oil prices bring relief to India’s fiscal and current account deficits

The wholesale market has witnessed an even steeper increase. At Delhi's Azadpur Mandi, one of the country's largest fruit and vegetable markets, average tomato prices have climbed to around ₹2,700 per quintal, about 66% higher than last year, according to a Financial Express report.

Ashok Kaushik, a trader at Azadpur Mandi, told Financial Express that arrivals from Uttar Pradesh and Haryana have almost dried up, while growers in Maharashtra and Karnataka are finding better prices in southern markets.

He said the combination of deficient rainfall and prolonged heat has reduced output, keeping supplies tight and prices elevated. Traders expect the situation to improve only after harvesting resumes in the affected regions.

MUST READ: Inflation worries shift from fuel to food as El Niño, weak monsoon emerge as key risks: BNP Paribas

Southern markets

The supply imbalance has pushed prices to record levels in Andhra Pradesh's Madanapalle Agricultural Market, one of Asia's largest tomato trading centres. Wholesale prices there have crossed ₹34,000 per quintal, compared with roughly ₹2,000 per quintal a month earlier.

With crops affected in parts of Maharashtra, Madhya Pradesh and Haryana, buyers have increasingly relied on southern supplies, intensifying competition for available produce.

Data from the consumer affairs department also shows the modal wholesale price of tomatoes has risen to ₹3,000 per quintal, nearly 50% higher than a year ago.

Food inflation concerns

The spike in tomato prices is already feeding into household budgets. Tomato inflation stood at 48.43% in May, contributing to higher food inflation, which reached 4.78%, according to official data.

Separately, a Crisil report noted that tomatoes were the biggest contributor to the rising cost of home-cooked meals during May. Average retail prices increased 57% year-on-year to ₹36 per kg, largely because production is estimated to have fallen by 3-4%.

Crisil expects tomato prices to stay elevated through June to August, citing lower summer sowing and weather-related disruptions in key northern producing regions. The report also warned that vegetable inflation could remain under pressure over the coming months.

MUST READ: India's retail inflation climbs to 3.93% in May as food prices heat up

Potato and onion outlook

While tomato prices continue to surge, other kitchen staples have remained relatively stable. Retail potato prices have declined 14% year-on-year to ₹21.99 per kg, while onions are selling at an average ₹28.05 per kg, only marginally higher than last year.

However, Crisil expects potato prices to inch up as fresh rabi arrivals give way to cold-storage stocks. Onion prices could also strengthen after an estimated 5% decline in rabi production this season.

Although the Agriculture Ministry has projected tomato production at 21.46 million tonnes in 2025-26, up 4.19% from the previous year, officials note that tomatoes are highly vulnerable to regional weather disruptions. Since production is spread across multiple states with staggered planting cycles, even a shortfall in one or two major growing regions can quickly tighten supplies and trigger sharp price spikes, particularly during the lean June-August and October-November periods.

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Published on: Jun 25, 2026 12:28 PM IST