In W34 in the tomato landscape, India's tomato production reached 864 thousand hectares (ha) in 2023, showing a slight increase from the previous year and ranking second in the world. However, in May-23 and early Jun-23, tomato prices in India were initially low, but they later surged to the point of exceeding the price of apples. This price fluctuation has led experts to consider solutions like cold storage and tomato processing to mitigate the issue. However, cold storage isn't a feasible option for tomatoes due to their multiple harvesting periods and changing supply-demand dynamics. Similarly, tomato processing faces challenges, including irregular processing schedules and the importance of maintaining quality. Indian consumers prefer fresh vegetables, making it challenging to shift their habits to manage inflation. To achieve price stability, implementing regulations for price discovery and volatility is necessary to ensure consistent production and prices.
Moreover, the Indian government announced that tomato prices have dropped to USD 0.60 to 0.85 per kilogram (INR 50 to 70/kg) due to fresh crop arrival in retail markets. The government will continue selling tomatoes at discounted rates until they reach normal levels. Previously, tomato prices had surged to USD 3.02/kg (INR 250/kg) due to unexpected rainfall. Due to a tomato shortage in India, there has been a rise in tomato exports from Nepal. In Jul-23 to Aug-23, Nepal exported around 670 tons of tomatoes to India, according to data from the Department of Customs. The total value of these tomato exports amounted to USD 105.2 thousand (INR 8.7 million). The demand for Nepali tomatoes has grown notably, particularly from Indian cities near the border.
The World Processing Tomato Council's latest update indicates that the processing tomato crop for Amitom countries has reached its peak, with most Amitom countries and processing facilities operating at capacity. The harvest in northern Italy and southern Italy has been satisfactory, with the quality returning to normal after hail-affected fields. The anticipated total tomato production for Italy remains at 5.6 million tons. In Spain, the tomato harvest is progressing well, with over 40% of the surface area in Extremadura already harvested. However, concerns about quality degradation and development issues for late tomatoes remain. Portugal's tomato harvest is progressing well, with no alterations to the forecasted production of 1.5 million tons. Greece's tomato harvest is 45% completed, with good fruit quality and an estimated tomato production of 430 thousand tons for 2023. In France, approximately 40 thousand tons of tomatoes have been delivered to processors, constituting around 26.67% of the projected total production of 150 thousand tons.
Lastly, Morocco has emerged as the top tomato supplier to the United Kingdom (UK) and the European Union (EU), surpassing Italy in this role. Over the past decade, Morocco has increased its greenhouse tomato cultivation area, growing from 5.5 thousand ha to almost 14 thousand ha. In 2022, Morocco exported 740 thousand tons of tomatoes to the EU, with 557 thousand tons entering the European market. European trade groups have urged the European Commission to reconsider its import rules for Moroccan tomatoes due to concerns about the impact of low-priced imports on major tomato-exporting countries like Spain and the Netherlands. On the other hand, the Spanish tomato industry faces challenges and needs to improve its tomato quality to remain competitive. Spain has experienced a decline in its tomato production area due to increasing competition from Morocco.
