Price volatility of tomato and risk mitigating strategy of the farmers in select markets of South India

Tomato is a highly perishable commodity and the prices are highly volatile across the markets and time. However, the farmers are cultivating the crop by managing the risk and getting income. In this context, the present study was conducted to measure price volatility and risk mitigating strategy of the farmers. The results of the study revealed that the average price varied from Rs.5.67 per kg to Rs.21.88 per kg among the selected markets. The price volatility was the highest during the months of January, March, July and August. It was concluded from the seasonal indices that there was two cycles in tomato prices. The price indices were the maximum during the months May to July and October to December. Major Price risk mitigation strategy followed by the farmers were shift to other crops, reduce the area under tomato, seasonal adjustments of tomato and market the tomatoes in the distant markets.