atif,
the tomatoes used are sold to the festival's organization, who then makes a profit with the festival itself.
they are using the tomatoes (over-riped) to contribute to the economy (and they need it badly at the moment).
Here in the Gulf, the money used to maintain the golf courts green, could buy tones and tones of food, pay for the education of millions of these children and even maintain those green golf courts in those poor nations, which are already naturally green, with the additional benefit of employing lots of local people in their native countries.

PS. I am not defending waste of food, what I am trying to do is to call the attention to the hypocrisy publicly endorsed by governments and public figures like Tiger Woods.