KARACHI: Just two weeks ahead of Ramazan, tomato prices have crashed due to a bumper crop leading to an oversupply, offering relief to consumers already burdened by high utility bills, while growers face severe losses from the price plunge.

On residential streets and at roadside stalls, sellers offer tomatoes at Rs100 for five kilograms, although many are not fully red, while others demand the same price for 2.5-3kg. The sale of vegetables on roadsides or in residential areas by pushcart dealers usually indicates an abundant supply, offering a business opportunity for many unemployed people.

However, some retailers continue to seek higher profit margins, selling red tomatoes at Rs30-50 per kg and rejecting the 5kg bags priced at Rs100, calling them substandard. These retailers also claim that the pushcart dealers may have sourced their tomatoes directly from growing areas, bypassing middlemen.

However, President of the Falahi Anjuman Wholesale Vegetable Market, Super Highway, Haji Shahjehan, disagrees with this perception.

He said the wholesale price of tomatoes already ranges between Rs200 and Rs300 per 15/16kg wooden pack in the Mandi, ruling out direct purchases from growers. He added that an average-quality tomato is available for Rs150 per 15kg, and some wholesalers even offer 17-18kg for Rs200-300.

Drop in prices brings relief for consumers, but growers suffer

“This is a big relief for consumers who paid Rs90-120 per kg for tomatoes at the same time last year,” he said, adding that the steep price drop might discourage growers from producing tomatoes in the coming year. He said that some growers, frustrated by the price decline, have even resorted to feeding tomatoes to animals.

With consumers benefitting from the low prices of raw tomatoes, ketchup manufacturers are also expected to gain, purchasing tomatoes at throwaway prices.

While some manufacturers may slightly lower prices for consumers, others might keep them stable, as ketchup demand typically increases during Ramazan. Ketchup exporters will benefit from the reduced production costs. Mr Shahjehan attributed the massive price drop to a bumper crop in Sindh, which is also feeding up-country markets.

In the wholesale market, two to three types of vegetables are available with varying price ranges. However, in the case of tomatoes, consumers are finding good-quality produce at much lower prices due to oversupply. “Every two to three years, consumers get vegetables at the lowest prices. This year, tomatoes lead the way, followed by Malir peas,” Mr Shahjehan said.

Malir peas are also being sold at pushcart stalls for Rs100 for 2kg or Rs40-50 per kg. “I think this is the first time that Malir peas are priced at rock-bottom levels,” Mr Shahjehan said, recalling that its price last year was at Rs200-300 per kg and later settled at Rs80-120 due to rising supplies.

Onions, potatoes

Retail onion prices have also fallen to Rs100 per kg, compared to Rs180-230 in February last year. This price drop is again attributed to better supplies from a good crop in Sindh. Its wholesale price now ranges between Rs2,000 and 2,200 per 40kg or Rs50-55 per kg.

Mr Shahjehan said the arrival of onion crops has increased since December-January, and while some onions are being exported, competition from India has limited the quantities.

New potato prices have also dropped, now ranging Rs60-80 per kg, compared to Rs120-140 a few months ago. However, some retailers are still asking for Rs100 per kg. Potatoes were available at Rs50-70 per kg in February last year. The wholesale rate for potatoes is now Rs1,200-1,600 per 40kg, or Rs30-40 per kg, with some exports to various countries.

Pushcart dealers are selling spinach at Rs50 for 2kg and carrots at Rs100 for 2.5kg, though some retailers charge Rs50-60 per kg for carrots.

Mr Shahjehan called upon the government to develop a mechanism to guide growers on the expected size of the crops they plan to harvest or cultivate. Otherwise, he added, extraordinary production may benefit consumers but result in serious crises for the growers.

Published in Dawn, February 15th, 2025