Tomato and mango farmers in Rayalaseema face financial losses due to bumper crops
GS3Economy · S&T · Environment · Security· Food processing & supply chain· Prelims + Mains·
Post-harvest infrastructure and market linkages: a key GS3 case study on agricultural price volatility.
Why in news
Farmers in Rayalaseema are facing financial losses due to bumper crops and price crashes, prompting the launch of the ₹1-lakh-crore Rayalaseema Integrated Horticulture Hub project.
Background
Tomato prices in July 2025 fell to ₹14.70/kg, while mango prices in 2026 dropped from ₹120/kg to ₹30/kg. The Rayalaseema Integrated Horticulture Hub project is valued at ₹1-lakh-crore and is scheduled for launch on October 2.
Facts for Prelims
- FactTomato prices in July 2025 reached a low of ₹14.70/kg in Rayalaseema.
- FactMango prices in 2026 fell from ₹120/kg to ₹30/kg in the region.
- SchemeRayalaseema Integrated Horticulture Hub is a ₹1-lakh-crore project to improve infrastructure and market linkages.
- PlaceRayalaseema is the region affected by bumper crop oversupply and price crashes.
Prelims practice question
With reference to the Rayalaseema Integrated Horticulture Hub, consider the following statements:
- The project is valued at ₹1-lakh-crore to improve infrastructure and market linkages.
- Tomato prices in the region reached a low of ₹14.70/kg in July 2025.
- Mango prices in the region rose from ₹30/kg to ₹120/kg in 2026.
Which of the statements given above is/are correct?
- (a)1 only
- (b)3 only
- (c)1 and 2 only
- (d)1 and 3 only
Show answer
Answer: (c) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: Mango prices dropped from ₹120/kg to ₹30/kg in 2026.
For Mains
Q. Discuss how inadequate post-harvest infrastructure and market linkages contribute to price volatility for horticultural crops in India.
Dimensions to cover in your answer
- Supply-demand mismatch: Lack of cold storage and processing units leading to distress sales during bumper harvests
- Infrastructure deficit: Poor marketing infrastructure and water scarcity hindering sustainable horticultural growth
- Market linkage gaps: Absence of direct-to-consumer channels causing price crashes for farmers
Keywords: Price Volatility · Post-harvest Infrastructure · Market Linkages · Distress Sale · Horticulture Hub
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