The Central Government has recently announced “funding and guidance” for the winners of the ‘Tomato Grand Challenge (TGC)’. The initiative was launched by the Department of Consumer Affairs in collaboration with the Ministry of Education (Innovation Cell) in 2023, with the aim of finding innovative and scalable solutions to stabilize the tomato supply chain. The challenge specifically seeks solutions to problems faced in the production, distribution and price stability of tomatoes.
Tomato Grand Challenge (TGC) and ‘TOPs’
- In India, apart from tomatoes, onions and potatoes (collectively called ‘TOPs’) are major agricultural commodities, whose production and consumption is high.
- Their prices fluctuate heavily, which is challenging for both Indian consumers and farmers.
- These three vegetables account for more than one-third of the Consumer Price Index (CPI), and fluctuations in their prices create many problems.
Reasons for price volatility of TOPs
- Seasonal production: Changes in weather lead to supply shortages, which leads to price rise, while excess production leads to price fall.
- Natural factors: Factors such as weather shocks and pest attacks add to price volatility.
- Lack of storage facilities: Some states have limited storage facilities, which affects supply in the market.
- Unorganised market: Producers lack strong networks to connect with consumers, such as milk cooperatives, which exist in other agricultural products.
- TGC and other initiatives: Under TGC, the government hopes that this initiative will help bring stability in the supply chain of tomatoes, onions, and potatoes. Apart from this, other initiatives are also underway:
- Operation Greens: Under this scheme, support is being provided to address price volatility of TOPs, and it is being extended to other fruits and vegetables as well.
- Gramin Agriculture Market (GRAM): This initiative provides farmers an opportunity to sell their produce directly in the market, allowing them to get good prices.
- Mission for Integrated Development of Horticulture (MIDH): Under this mission, assistance is being provided for the overall development of horticulture, as well as creation of low-cost onion storage structures.
- Other Initiatives: Schemes such as Agricultural Marketing Infrastructure (AMI), Kisan Rail Seva, and Price Stabilization Fund (PSF) are also being implemented.