India is the second largest producer of vegetables in the world, contributing 14% of the total world vegetables production. In India, tomato is the most widely grown vegetable crop with a share of 10 per cent and occupies third position. In this crop we observe more price variation due to increased supply of tomato than market demand which leads to glut in market followed by price reduction. The above price fluctuation was found to be significant which affects the economy of small and marginal farmers who are mostly involved in cultivation of tomato. For the benefit and welfare of these farmers it becomes necessary to forecast the tomato price. Based on these forecast, farmers can make cropping decision and avoid economic losses.