A vendor arranges tomatoes at a wholesale vegetable market in Kolkata. The price of tomatoes increased by 366.86% from 26.76 rupees/kg at the beginning of the year to 108.92 rupees/kg on 11/7.
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India is facing a tomato crisis as prices skyrocket by more than 300% due to extreme weather conditions.
Tomato prices are up 341% year-to-date, from Rs 24.68/kg to Rs 108.92/kg on July 11, data from Bureau of Consumer Affairs shows.
Flooding in major tomato-producing states such as Andhra Pradesh, Maharashtra and Karnataka was the main reason for the spike in prices, according to the report. India’s National Institute of Biological Stress Managementa council dedicated to agricultural research.
“Due to excessive rainfall in these states, tomatoes [crops have] severely affected… A large portion of the tomato crop was destroyed due to rain and flooding,” the council said.
Damien Yeo, food and beverage analyst at BMI, a research unit of Fitch Solutions, said India is the second largest tomato producer in the world and, along with onions, tomatoes are “a real food”. absolute essential” to the daily lives of Indian consumers.
Masala, one of the most popular dishes in Indian cuisine, uses tomatoes as the main ingredient in the base sauce. Another famous Indian dish, Andhra Tomato Kura (tomato curry) is also loved by locals.
Paan prepared with masala. Masala, one of the most commonly consumed dishes in Indian cuisine, uses tomatoes as the main ingredient in the base sauce.
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Local farmers report large-scale theft of their tomato plants, with a chronicle report how the thieves stole boxes of tomatoes weighing about 150kg.
Some McDonald’s stores in India have also decided to give up tomatoes from their menu.
“This is a seasonal issue that the food and restaurant industry faces every time there is a monsoon,” McDonald’s India West and South franchises said in a statement.
In an effort to generate new ideas on how to improve India’s tomato value chain and reduce prices, the government has invited the public to participate in the Tomato Grand Challenge Hackathon.
Tomato prices typically spike during the June and July growing season before the August harvest, Yeo told CNBC.
“Above-average temperatures in June and July 2023, plus a late start of the 2023 southwest monsoon affected production,” he said.
Expected summer crop supply could arrive next month, helping to soften prices…
Radhika Rao
Senior Economist, DBS . Bank
He said the rise of tomato mosaic virus in recent years has also resulted in varying degrees of damage to crops, from partial to full damage. The disease is characterized by a mottled or mosaic appearance on the foliage, and can resulting in a reduction in the size, quality and quantity of the output.
Compared to July last year, tomato prices have increased by 166% according to government data. Hence, India’s inflation print is likely increased 4.58% according to a Reuters poll in June compared with the same period last year when food prices soared.
DBS senior economist Radhika Rao said the prices of tomatoes, onions and potatoes are often “very volatile” and face relatively inelastic demand as they are staples enjoyed by consumers. consumed by Indians.
Analysts predict tomato prices could drop as low as next month when the harvest begins.
“The expectation is that summer crop supplies can arrive next month, helping to soften prices, before administrative measures including higher imports can be used,” said Rao.
Similarly, BMI’s Yeo says the August tomato harvest will start to arrive – and even if it’s low, new volumes could help keep prices down.
