Changing landscape of tomato trade in Madanapalle of A.P

Madanapalle in the Annamayya district of Andhra Pradesh is slowly on the verge of losing its prestigious tag of being Asia’s largest tomato cultivation belt and finds its monopoly, which continued till a decade ago, shaken. The prime reason is unpredictable variations in climate and seasonal yields, coupled with extreme price tags.

During the last decade, the tomato farmers had seen the best of their fortunes and the worst as well. They express optimism regarding their prospects in 2025, buoyed by expectations of favorable weather conditions and improved market dynamics.

Nearly two-thirds of the Madanapalle division is dedicated to tomato cultivation across a vast area of about 25,000 hectares, contributing its might to the State’s agricultural productivity and remaining the leader of tomato trade in India.

The tomato market in Madanapalle is subject to significant price fluctuations driven by several variables. Adverse weather, including heavy rainfall and prolonged summers, can profoundly impact crop yields, while disruptions in supply chains and seasonal variations in demand heighten price instability. All these factors have impacted tomato cultivation in 2024. Statistics for the last decade show that during peak harvesting periods, prices for tomatoes in the wholesale market can drop as low as ₹4 per kilogram, whereas off-season shortages or crop damage can propel prices beyond ₹90 per kilogram.

In October 2024, wholesale tomato prices surged to ₹90 per kilogram due to heavy rainfall in Andhra Pradesh, Tamil Nadu, and Karnataka, which caused extensive crop destruction and supply chain interruptions. All over South India, the retail prices even exceeded ₹100 per kilogram, thereby imposing a financial burden on consumers and small retailers.

In the first week of January 2025, the average wholesale price of tomatoes in Madanapalle stood at ₹12 per kg.

Quantifying the annual revenue generated by the Madanapalle tomato market presents many challenges. The areas of Punganur and Palamaner in Chittoor district and the Madanapalle division in Annamayya district produced an impressive 12 lakh metric tonnes of tomatoes during the 2020-21 agricultural season, demonstrating the region’s agricultural capacity. However, the sudden surge of tomato cultivation revolution between 2021-2024 in other States — Maharashtra, Chhattisgarh, and Karnataka — led to a sharp decline in the exports from the Madanapalle region, endangering its monopoly.

Price volatility represents a primary concern, as sudden market changes often erode profit margins. The elevated costs associated with agrochemicals and pest management further strain farmers’ finances, and limited negotiating power frequently results in inadequate compensation for their produce.

Experts propose that implementing strategic initiatives could alleviate these challenges and leverage the market’s potential. The establishment of food processing industries could utilize surplus supply during peak harvest periods, thereby minimizing waste and stabilizing prices.

“The promotion of contract farming could secure markets for farmers, ensuring stable income. Additionally, the development of organized marketing systems would provide farmers with enhanced opportunities and improved profitability,” Mr. Srikanth, a Chennai-based horticultural scientist who works in the Rayalaseema region, observed.