New Delhi: Despite tensions between India and Pakistan , diplomacy of a new kind could sprout between the two neighbours. Pakistan government is toying with the idea of allowing tomato exports to India because of plummeting prices in local markets thanks to a bumper harvest.
Traders believe that this could cool down tomato prices in India , where consumers are reeling under the impact of high food prices, mainly vegetables, pulses and sugar.
According to Pakistan-based newspaper The News, excess supplies because of bumper tomato crop in Balochistan and Sindh regions has created a glut in the market. “Economic Coordination Committee of the cabinet is likely to allow tomato export to India ,” The News reported on Tuesday.
The paper said quality tomato was selling at Rs 10 per kg while in many regions of Pakistan; medium quality tomato is available at Rs 7 to 8 per kg.
While in neighbouring India, retail prices of tomato have been varying between Rs 20 to Rs 25 a kg since the last three months.
On Wednesday in Delhi, price of tomato was quoted at around Rs 25 a kg in retail markets, but as per the Delhi Agricultural Marketing Board, wholesale price of tomato was around Rs 1,036 per quintal on Wednesday. In October 2007, India had started a move to export tomatoes to Pakistan where prices went up significantly.
Agriculture ministry officials said that in India supply constraints because of drought in key tomato producing states like Andhra Pradesh, Uttar Pradesh and Bihar has pushed up tomato prices in the last thee months.
“Imports from Pakistan could ease prices to a large extent at least in north India,” a trader affiliated to the Agricultural Produce Marketing Committee, Azadpur told FE. He said that it is easier to get supplies from neighbouring Pakistan than from southern and eastern Indian states, because of physical proximity.
India is the fourth largest producer of tomato in the world with an estimated production of 8.6 million tonne in 2009, while China, United States and Turkey produce 3.2 million tonne, 0.1 million tonnes and 9.8 million tonne respectively.
India consumes close to 8 million tonne of tomatoes annually, but because of lack of storage facilities and perishable nature of the vegetable, a large quantity of the produce is not distributed evenly across the country.
Andhra Pradesh is the largest grower of tomato in the country with a production of around 2.5 million tonnes. Bihar, Karnataka, Maharashtra and Orissa are the other main tomato growing states in India.
Source : Financial Express