In H2 of 2024, the price trend for tomato powder, which relies heavily on fresh tomatoes as feedstock, mirrored the volatility observed in the fresh tomato market. Adverse weather conditions, particularly heavy monsoon rains, disrupted tomato production and transportation in key growing regions, leading to a significant reduction in fresh tomato supply. These disruptions not only caused higher prices in wholesale and retail markets for fresh tomatoes but also impacted the processing costs for tomato powder production, as the availability of raw tomatoes for crushing decreased.
As the supply of fresh tomatoes tightened, processing plants faced challenges in sourcing adequate quantities, further driving up tomato powder prices. Given the perishable nature of tomatoes and the impact of weather on both yield and transportation, the cost of producing tomato powder rose in line with the surge in fresh tomato prices. However, by the end of Q3, the arrival of fresh harvests from southern states alleviated some of the pressure on the fresh tomato supply, leading to a stabilization of tomato powder prices.