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Tomato Farmers in Tamil Nadu Hit by Price Crash, Struggle to Recover Costs
March 22, 2026 by Mediaeye News
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Tomato Farmers in Tamil Nadu Hit by Price Crash, Struggle to Recover Costs

Chennai: Tomato growers across several districts in Tamil Nadu are facing a severe crisis as market prices have plunged sharply, making it difficult for farmers to even recover basic cultivation expenses. The slump has raised concerns over agricultural distress in the region.

In many areas, farmers have stopped harvesting altogether, choosing to leave fully grown produce in the fields due to unremunerative rates.

Experts attribute the sudden price crash to a sharp increase in arrivals from multiple growing regions, which resulted in an oversupply in wholesale markets. This has led to a rapid decline in prices, surprising farmers and upsetting their projected earnings during the peak harvest season.

In key production belts such as Dindigul, the price of tomatoes has fallen to single digits per kilogram, with traders offering significantly lower rates compared to previous weeks.

Farmers who had invested heavily in cultivation are now struggling to manage operational costs, as the market fails to absorb the excess supply. Rising labour charges have further compounded the crisis.

With harvesting and handling costs remaining high, farmers say the current prices do not justify the expense of plucking and transporting the produce. This has led to a growing trend of suspending harvest activities to minimise additional losses.

Farmers in Dindigul said the price of a standard 14-kg tomato box has dropped to between Rs 100 and Rs 150, compared to Rs 400 – Rs 600 just weeks ago. At the same time, labour costs have remained high, with daily wages for workers hovering around Rs 400. The combined impact of falling prices and rising input costs has led many farmers to suspend plucking operations altogether to avoid further losses.

Several growers who had expanded cultivation in anticipation of stable market conditions are now facing mounting financial pressure.

With harvesting costs estimated at around Rs 80 per box, the current market price does not even cover basic expenses, pushing farmers deeper into losses.

In the Dharmapuri district, there are early signs of marginal price recovery, with rates improving to Rs 13 – Rs 15 per kilogram following a dip in arrivals after recent rainfall. However, farmers said the market remains volatile and unpredictable, offering little assurance of sustained improvement.

The situation is similar in parts of Tiruchy district, particularly in the Marungapuri block, where farmers have also halted harvesting.

With plucking and transportation costs estimated at nearly Rs 3,000 per acre, the returns from current market prices are insufficient to justify continued operations.

Experts emphasise the need for long-term interventions, such as better supply chain management, cold storage facilities, and minimum support mechanisms to shield farmers from recurring price crashes and ensure more stable returns.

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File Photo: IANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

–IANS

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