Government in Talks with ONDC for Rs 70/kg Subsidized Online Tomato Sale

In a bid to alleviate the burden of soaring tomato prices on consumers, the Indian government is exploring the option of offering tomatoes online at a subsidized rate of Rs 70 per kg. The initiative is currently under discussion with the Open Network for Digital Commerce (ONDC), a platform that goes beyond the conventional model of digital commerce, allowing buyers and sellers to transact across different platforms.

Government sources revealed that the National Cooperative Consumers' Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) are engaging in talks with ONDC to execute the plan efficiently. The online sale of subsidized tomatoes is currently in its testing phase, and if successful, the government is expected to announce the initiative soon. Initially, the service will be rolled out in the Delhi-NCR region.

Currently, e-commerce companies are offering doorstep delivery of tomatoes at a significantly higher rate of about Rs 170-180 per kg. The steep increase in tomato prices has been felt across the country and is not limited to a specific region or geography, with prices skyrocketing to as high as Rs 150-200 per kg in major cities.

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To provide immediate relief to consumers, the central government has already directed its marketing agencies, NAFED and NCCF, to sell tomatoes at a reduced price of Rs 70 per kg, down from the previous Rs 80 per kg. The tomatoes were initially retailed at Rs 90 per kg and later brought down to Rs 80 per kg from July 16, 2023. The latest price reduction aims to ease the burden on consumers and ensure the availability of affordable tomatoes.

In response to the sharp increase in tomato prices nationwide, NCCF and NAFED initiated the procurement of tomatoes from mandis (wholesale markets) in Andhra Pradesh, Karnataka, and Maharashtra. The objective is to simultaneously supply these tomatoes to major consumption centers where retail prices have seen the most significant surge in the past month.

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The government has attributed the rise in tomato prices to the monsoon season, which has posed additional challenges in distribution and increased transit losses. The move to offer tomatoes at subsidized rates through the ONDC platform is expected to address this issue and make this essential commodity more affordable and accessible to the masses.

As the talks with ONDC progress, the government remains hopeful that the online sale of subsidized tomatoes will provide much-needed relief to consumers grappling with the high cost of this kitchen staple. The initiative, if successful, may pave the way for similar interventions in other essential commodities, bringing further ease to the lives of citizens across the country.

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