NEW DELHI: The government will sell tomatoes at Rs 40 per kg from August 20 onwards with an aim to further cool down its prices.

NAFED and NCCF have been directed by the consumer affairs department to sell tomatoes at Rs 40 per kg from August 20, in view of continued decline in tomato prices in wholesale and retail markets.

The Consumer Affairs Ministry on Friday announced the decision, saying that till date more than 15 lakh kg of tomatoes have been procured by NAFED and NCCF since July 14.

Tomatoes have been sold by the two agencies at subsidised rates across the country in locations like Delhi-NCR, Rajasthan, Uttar Pradesh and Bihar in the past one month.

The retail price of tomatoes procured by NAFED and NCCF were initially fixed at Rs 90 per kg, which in the past one month has come down to Rs 50 per kg on August 15 and now the government aims to sell it at Rs 40 per kg from August 20 onwards.

Amid huge rise in tomato prices since the past two months, government had started procuring it from Andhra Pradesh, Karnataka and Maharashtra, to bring the rates down.

There was a spike in retail inflation also for July, as it had touched 7.44 per cent owing to high food prices, which took food inflation to 11.51 per cent for the same period.