TIRUPATI: A comprehensive plan to establish tomato by-products manufacturing units in Annamayya district has been submitted to the State government with the twin objectives of stabilising farmer incomes and reducing wastage during the market glut.
The initiative focuses on promoting tomato paste, puree and sauce units under public-private partnership (PPP) model, ensuring assured procurement of produce from farmers and creating sustainable value-addition.
These processing units will absorb surplus production during the peak season, thereby preventing price crash that has historically pushed farmers into distress.
By focusing on export-quality processing, branding, packaging and shelf-life enhancement, the government aims to expand the reach of tomatoes from Annamayya district to both domestic and international markets, officials explained.
Farmer Producer Organisations (FPOs) are being encouraged to enter into agreements with food processing companies, which will provide assured marketing channels and reduce dependence on intermediaries.
Tomato is a major horticultural crop in the district, particularly in Madanapalle, Punganur, Tamballapalle and Pileru. According to the District Horticulture Department, tomato crop is raised in about 8,400 hectares in the district, with productivity averaging 55-60 tonnes per hectare.
Annual production is estimated at 4.6–5 lakh tonnes, much of which is marketed through the Madanapalle tomato market - one of the largest trading centres in the country. During peak arrivals, 300 to 500 trucks transport tomatoes daily to major consumption centres across South India and beyond.
Despite this scale, tomato farming has long been associated with market volatility and risks.
Farmers who invest heavily on inputs, often face sudden price crashes, sometimes forcing them to abandon the crop or sell produce at distress prices. Inadequate cold storage, unpredictable arrivals from neighbouring Sates and reliance on intermediaries have compounded these challenges.
District Collector Nishant Kumar said the administration is implementing several measures alongside the processing initiative, including the Market Intervention Scheme (MIS), Price Stabilisation Fund operations, expansion of cold storage infrastructure and direct farmer-to-consumer marketing systems.
He noted that four e-NAM-linked Agricultural Market Committees at Madanapalle, Punganur, Kalikiri and Gurramkonda provide transparent online trading platforms, enabling farmers to access wider markets.
“Value-addition projects and processing industries can play a major role in stabilising tomato prices and improving farmers’ incomes in the long run. Processing facilities will help create a sustainable market ecosystem for tomato by-products and minimise losses during periods of excess production,” Collector Nishant Kumar explained.