Food processing & packaging industry isn't so developed in India. Farmers in remote area can't even afford to transport these raw tomatoes to the closest food processing units. For many, transportation cost is higher than what market would fetch for the produce itself. Add to it mandi taxes, labour cost and long credit purchases, it somehow makes sense for them to dump it all there only. Yeah, it's a sad situation and we feel the helplessness all around.
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Fair points you make, those farmers need more support!