Tomato farming is the 2nd most widely practiced form of vegetable farming in India after potatoes. India is the 2nd largest tomato producer worldwide, producing 17 million tonnes in 2014-2015. However, Indian tomato yields are low at 20 tons/hectare compared to the world average of 33 tons/hectare and China's average of 48 tons/hectare. Only 1% of Indian tomato production goes to processing versus 14% in China, as processors cannot afford to purchase tomatoes for more than 4 rupees per kg. The traditional tomato supply chain in India involves farmers selling to agents, auctioneers, wholesalers, cart vendors and then traditional retailers before reaching customers.

2. INTERESTING FACTS ABOUT TOMATO FARMING IN INDIA
2nd
most widely grown vegetable in India after potatoes
2nd
largest tomato producer worldwide is India
17 mn tonnes
produced in India in 2014-15
20 tons/hectare (ha)
Low yields
World average ~ 33 tons/ha; China average 48 tons/ha
10-15%
Indian tomatoes exported in 2015
1%
of the total production goes to the processing industry,
versus approximately 14% in China

3. “
“The processing industry currently
cannot afford to purchase tomatoes
for more than ₹ 4/kg, so depending
on market conditions and prices, it
might be hard for processors to
secure sourcing of tomatoes.”
- an Indian tomato expert on
Tomato Processing Industry

7. SUPPLY CHAIN MODELS

8. Farmers
Agents
Auctioneers
Wholesalers
Cart Vendors
Traditional
Retailers
Customers
LEG 1 LEG 3 LEG 4LEG 2
TRADITIONAL SUPPLY CHAIN

9. Contract
Farmer
Farmer
Farmer
Farmer
Buying
Centres
Hub
Store
Store
Store
Store
Customers
Agents Wholesalers
Traditional Retailing Route
LEG 1 LEG 2 LEG 3 LEG 4
HUB AND SPOKE MODEL

10. LEG 1 LEG 2 LEG 4
LeaseFarm
Contract
Farmers
Farmers
Consolidation
Centres
Agents
Hub
(City)
Hub
(Outside City)
Stores
Wholesalers
Cart Vendors
Traditional
Customers
LEG 3
VALUE CHAIN MODEL

11. Transportation