Centre plans subsidized tomato sales as prices hit ₹92/kg
What's the story
The Indian government is planning to sell tomatoes at subsidized rates through cooperative outlets, in a bid to cool the recent price surge. The all-India average retail price of tomatoes has jumped from ₹34.43 per kg last year to ₹44.36 per kg now, due to supply disruptions and other factors. In some Delhi areas, like Greater Kailash, tomatoes are priced around ₹92 per kg.
Subsidized sales
Government intervention to start in select areas
The government plans to sell tomatoes at ₹35-45 per kg through outlets run by the National Cooperative Consumers' Federation of India (NCCF) and other cooperative networks. This move comes as part of a larger strategy to tackle rising inflation, which has been driven by steep tomato prices among other things. The intervention is likely to start in select areas of Delhi-NCR and Mumbai before expanding further based on market conditions.
Inflation impact
Retail food inflation rises to 4.78%
India's retail food inflation has gone up to 4.78% year-on-year, from 4.2% in April, mainly due to rising prices of tomatoes, ginger, and other items. In key consumption centers like Delhi and Mumbai, tomatoes are selling at ₹56/kg and ₹63/kg, respectively, as against last year's prices of ₹50/kg and ₹37/kg. Online platforms such as BigBasket, Amazon, and Blinkit are also selling tomatoes between ₹79-95 per kg.
Market control
Previous government interventions
The Indian government has intervened in the tomato market several times over the years to control sharp price spikes. In July 2023, NCCF and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) sold tomatoes at ₹90/kg, later reducing it as market prices eased. Similar interventions were also undertaken in 2024 and 2025 amid monsoon-related supply disruptions.
Production issues
Factors affecting tomato prices
According to the Union agriculture ministry's second advance estimates for 2025-26, India produces about 21.46 million tons of tomatoes annually from some 8.34 lakh hectares. However, traders say that persistent rainfall has affected crop quality and increased wastage due to the highly perishable nature of tomatoes. An industry executive said that tomato prices on online platforms are generally in line with prevailing retail prices across cities, taking into account local supply conditions and logistics expenses.