The rise in tomato prices in India has had several implications on the economy: 1. Inflation: The increase in tomato prices contributes to inflation as it is an essential ingredient in many Indian dishes. 2. Household budgets: Higher tomato prices directly affect the household budgets of consumers, as it is a staple in Indian kitchens. 3. Farmer income: Tomato farmers benefit from the increased prices, as it boosts their income and provides better livelihood opportunities. 4. Inter-state trade: The tomato price rise has led to an increase in inter-state tomato trade, as states with lower prices import from states with higher prices. To address this issue, the Indian government has taken several measures: 1. Importing tomatoes: The government has allowed the import of tomatoes to increase supply and stabilize prices. 2. Promoting cultivation: The Centre has initiated schemes to encourage farmers to grow tomatoes, thereby increasing domestic production. 3. Cold storage facilities: Investment in infrastructure for cold storage facilities helps preserve tomatoes for longer periods, reducing wastage and supporting price stability. 4. Price monitoring: The government regularly monitors tomato prices and takes necessary action, including capping prices, to prevent excessive inflation. These measures aim to stabilize tomato prices, reduce inflation, and ensure affordable access for consumers while supporting the income of farmers.