Frozen Tomatoes

If you banged these tomatoes against each other, they would sound like one cue ball hitting another on a pool table. Mom took out these frozen tomatoes from the freezer after 8 months and put them out to thaw. These tomatoes cost Rs 10 per kg back then. On Friday, tomatoes were being sold at Rs 49 per kg (Ballygunge).
In the wholesale market, the scenario is completely different. Wholesale tomato prices have fallen to a three-year low of Rs 2-3 per kg. This does not even cover their transportation costs. A video shared by news agency ANI showed farmers throwing crates of tomatoes on Friday after the crash in prices.
Farmers have to invest Rs 4 for producing 1 kg of tomato in their own land. The prices go up to Rs 8-10 per kg if the land is leased and counting labour costs.
Why did this happen, you ask? Cobweb Model.
In the cobweb model, farmers decide to produce according to the realization of the previous year. Despite the lockdown due to COVID-19, tomato farmers have reported good returns in 2020, with the crop trading at Rs 20 per kg for most of the year. The trend reversed by the end of the year and prices have been falling since January.
Here's the simplified cobweb model in 4 points:
1. If there is a very good harvest, then supply will be greater than expected and this will cause a fall in price.
2. Next year farmers may be put off by the low price and produce something else. The consequence is that if we have one year of low prices, next year farmers reduce the supply.
3. If supply is reduced, then this will cause the price to rise.
4. If farmers see high prices (and high profits), then next year they are inclined to increase supply because that product is more profitable.
There could likely be a low supply of tomatoes in the coming season. I'm sorry for blabbering so much but I felt the photograph deserved a story. In case you haven't frozen tomatoes before, they are best used in cooked foods only such as soups, sauces and stews as they become mushy when they're thawed. They won’t be enjoyable raw after freezing.
Read less