Pricing Analysis, Pricing Variability & Price Forecast of Tomato in India

CONTENTS

INTRODUCTION

CONCEPTS AND REVIEW

DESCRIPTION OF STUDY AREA

DESIGN OF STUDY

RESULTS AND DISCUSSION

REFERENCES

LIST OF TABLES

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LIST OF CHARTS

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LIST OF MAP

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ABSTRACT

STUDY ON PRICING VARIABILITY OF TOMATO IN WESTERN TAMIL NADU

India is the second largest producer of vegetables in the world, contributing 14% of the total world vegetables production. In India, tomato is the most widely grown vegetable crop with a share of 10 per cent and occupies third position. In this crop we observe more price variation due to increased supply of tomato than market demand which leads to glut in market followed by price reduction. The above price fluctuation was found to be significant which affects the economy of small and marginal farmers who are mostly involved in cultivation of tomato. For the benefit and welfare of these farmers it becomes necessary to forecast the tomato price. Based on these forecast, farmers can make cropping decision and avoid economic losses. The study conducted in western Tamil Nadu for past five month revealed that tomato price will raise in April which is forecasted through three month moving average. These are the prices of 10 kg tomato in the following markets, Kinathukadavu-Rs.73.6, Pollachi- Rs.107.9, Mettuppalayayam- Rs.47.7, Oddanchatram- Rs.55.5. Farmers are using the traditional marketing channels for marketing the tomato though there are latest developments like farmers shandy (Uzhavar chanthai). Only minimum quantities of tomato are being sold through farmers shandy and rest through commission agents. By analyzing this major share of Rs.4.5/Kg goes to middlemen’s/ Commission agents.

CHAPTER I

INTRODUCTION

Vegetables are defined as edible herbaceous plants or parts of plants consumed as raw or after cooking and are rich in vitamins and minerals, low in calorific value and neutralize the acid substances produced during digestion of high-energy foods. Olericulture is a branch of horticulture that deals with production, storage, processing and marketing of vegetables and has its origin when man started growing vegetables for consumption.

1.1. IMPORTANCE OF VEGETABLES

1.1.1. NUTRITION

Human body requires a wide range of nutrients like carbohydrates, protein, fat, vitamins and minerals for normal growth and sustenance of physiological activities. Protein, carbohydrates and fat, generally referred as proximate principles are required in large quantities and are oxidized in the body to yield energy. Protein is the major growth promoting or body building nutrient. Vitamins and minerals are required in small quantities for physiological processes and metabolic activities. Vegetables are rich and comparatively cheap sources of vitamins like β-carotene, folic acid, vitamin-B, vitamin-C, vitamin-E etc. and minerals like iron, calcium, magnesium, phosphorus etc. and dietary fibers.

Recommended daily allowance (RDA) by the Indian Council of Medical Research in for an adult man is 300 g of vegetables. It includes 100 g roots and tubers, 125g g leaf vegetables and 75 g other vegetables. The RDA for a woman is 75 g roots and tubers, 125 g. leaf vegetables and 75 g other vegetables totaling to 275 g/day. However, it varies with age of people and nature of work. (Source: National Horticulture Board)

1.1.2. IMPORTANCE TO A GROWER

Nature is in providing us-with all kinds of vegetable crops that can be grown in different seasons of the year in region. Different kinds of vegetables provide leaf, stem, flower, fruit or seed for consumption.' Considering vividness in the requirement of soil and season farmers can grow vegetable crops throughout the year for earning regular and steady income to meet the daily expenditure. There are vegetables of very short duration that can be grown as rained and intercrops in either agronomical crops or vegetable crops. There 'are vegetables which will improve soil and also provide fodder to catties. Thus farmer has wide choice to select suitable crop to adjust in his cropping pattern in given situation. Climate and soil conditions of this region are conducive to grow different vegetables.

1.1.3. EMPLOYMENT

Since cultivation of vegetable crops involves intensive cultural operations starting from sowing to marketing, it provides more and regular employment opportunities in rural areas.

1.1.4. INDUSTRIAL IMPORTANCE

The perishable nature of vegetables demand comprehensive planning for movement, Storage, processing and distribution of vegetable products. The growth of vegetable industry as a commercial proposition largely depends on mainly allied enterprises like storage, processing marketing and maintenance and service enterprises to encourage vegetable growing.

1.2. AREA & PRODUCTION OF VEGETABLE CROPS IN INDIA

Today, India is the second largest producer of vegetables (160290.983 MT) in the world, contributing 14% of the total world vegetables production of. In India Potato is most widely grown vegetable crop in the country with a share of 22 per cent, onion occupies second position and third is tomato.

TABLE: 1.1. Vegetable Production in India 2012-13

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(Source: National Horticulture Database – 2012)

Chart.1.1. Vegetable Cultivation Area in India 2012-13

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Chart.1.2. Vegetable Production in India 2012-13

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1.3. AREA & PRODUCTION OF VEGETABLE CROPS IN TAMILNADU

According to National Horticultural Database (2012-13), vegetable production in Tamil Nadu tapioca occupies first position in both area and production with an area of 156.8 thousand hectare and 7157.39 million tons respectively and Tomato states third position in both area and production with an area of 31.65 thousand hectares and 726.52 million tons respectively.

Table: 1. 2. Vegetable Production in Tamilnadu 2012-13

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(Source: National Horticulture Database – 2012)

Chart.1.3. Vegetable Cultivation Area in Tamilnadu 2012-13

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Chart.1.4. Vegetable Production in Tamilnadu 2012-13

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1.4. TOMATO

Taxonomy

Botanical name of tomato was Solanum lycopersicon (lycos = wolf and persicon = peach). Later in 1978 cultivated tomato is renamed as Lycopersicon esculentum Mill. and wild form as L. pimpinellifolium. Now the botanical name is changed as Solanum lycopersicon.

Origin

Tomato is originated in Peru of South America and name of crop came from the word “Tomatl”. The crop is of recent origin and first report of tomato was from Italy in 1544. Later spread was fast and the crop is grown throughout the length and breadth of world.

Nutritive value and medicinal use

Tomato occupies a prime position in list of protective foods since it is a rich source of minerals like calcium (48 mg / 100g), sodium (12.9 mg), trace elements, copper (0.19 mg), vitamins like vitamin A (900 IU), vitamin C (27 mg), vitamin B complex (thiamine), essential amino acids and healthy organic acids like citric, formic and acetic acids. The attractive red colour of fruit is due to lycopene and yellow colour is due to carotenes. Peculiar flavour of tomato is due to presence of ethanol, acetaldehyde and a number of volatile flavour components found in fruit. Different forms of tomatine, a steroidal glycoalkaloid, are identified from various parts of plant. Tomato is a good appetizer and its soup is a good remedy for preventing constipation.

Tomato ranks third in priority after Potato and Onion in India but ranks second after potato in the world. India ranks second in the area as well as in production of Tomato.