New Delhi, June 23 -- The government is preparing to sell tomatoes at subsidized rates through cooperative outlets to cool a price surge driven by supply disruptions, according to two government officials aware of the development.

The proposed market intervention comes amid a sharp increase in tomato prices, with the all-India average retail price rising to Rs.44.36 per kg, up from Rs.34.43 per kg a year ago, the officials said. The issue was discussed by the department of consumer affairs last week.

In several local retail markets, tomatoes are currently being sold at Rs.60-70 per kg. Retail tomato prices have jumped in India, the second largest producer globally, due to delays in arrivals, weather-related disruptions in producing regi...