The tomato puree market in 2024 experienced significant fluctuations, reflecting the volatility in feedstock tomato prices. Early in the year, retail tomato prices surged due to a combination of unseasonal rainfall and severe heatwave conditions across major producing regions like Maharashtra, Karnataka, Andhra Pradesh, and Himachal Pradesh. These adverse climatic events caused supply disruptions, leading to reduced arrivals in markets. The resulting price spikes affected the cost of tomato puree production, with manufacturers grappling with higher input costs.
Mid-year, the situation intensified as heavy rainfall further disrupted supply chains, particularly in the monsoon months of July and August. This period saw a sharp escalation in tomato prices, which translated into elevated costs for puree production. The scarcity of fresh tomatoes during these months strained the puree manufacturing sector, as producers contended with limited availability of raw materials and rising operational expenses.
However, the latter part of the year brought some respite, as improved weather conditions and government interventions, such as procurement initiatives in major tomato-growing states, led to a stabilization of prices. Increased tomato supplies in November contributed to a reduction in retail prices, which positively impacted the cost structure of tomato puree production. Despite the price corrections, the sector faced challenges in offsetting the earlier price shocks, which had a lasting effect on overall market dynamics. This year highlighted the strong dependence of tomato puree prices on the fluctuating supply and pricing of its primary feedstock, tomatoes