DesiPundit

Karthik argues why it makes economic sense for farmers in Karnataka, when faced with a glut in the tomato crop, to throw sackloads of tomatoes on the roads rather than sell them.

Given the facilities in India, it usually turns out that the costs of storage would be much higher than the expected revenues from it. So we only lose money by doing so. So what do we do? Dump them on the highways. Or if they take my suggestion, organize a Tomatina.

One solution that I could think of was to transfer the storage and transportation costs to the retailer.  Biggies like Reliance can surely set up a purchasing network and use refrigerated trucks to transport tomatoes to the cities?