Vendors display tomatoes at the Kolkata Wholesale Vegetable Market. As of July 11, tomato prices soared from Rs 26.76 per kg at the beginning of the year to Rs 108.92 per kg, an increase of 366.86%.
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India is facing a tomato crisis, with extreme weather conditions causing prices to soar by more than 300%.
Tomato prices have soared 341% so far this year, from Rs 24.68 per kg to Rs 108.92 per kg on July 11. Department of Consumer Affairs shows.
Flooding in key tomato-producing states of Andhra Pradesh, Maharashtra, Karnataka was reported as a key factor behind the surge in prices Indian National Institute of Biological Stress Managementa committee dedicated to agricultural research.
“The tomato (crop) has been severely affected due to the excessive rainfall in these states … most of the tomato crop has been destroyed by the rainfall and flooding,” the council said.
India is the world’s second-largest producer of tomatoes, which, like onions, are “absolutely essential” to the daily lives of Indian consumers, said Damien Yeo, food and beverage analyst at BMI, Fitch Solutions Research. few”.
One of the most popular dishes in Indian cuisine, masala uses tomatoes as a key ingredient in its base sauce. Another popular Indian dish, Andhra Tomato Kura (tomato curry), is also loved by locals.
Paan is prepared with masala. One of the most commonly eaten dishes in Indian cuisine, masala uses tomatoes as a key ingredient in its base sauce.
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local farmer report Mass theft of their tomato crops a report record How thieves escaped with crates of tomatoes weighing around 150kg.
Some McDonald’s outlets in India also decide to ditch tomatoes from their menu.
“This is a seasonal issue that the restaurant and food industry has to face every monsoon,” McDonald’s West and South India franchises said in a statement.
In order to come up with new ideas on how to improve the Indian tomato value chain and reduce prices, the government has Public Invited to Participate in the Tomato Challenge Hackathon.
Yeo told CNBC that tomato prices typically spike during the growing season in June and July, ahead of the August harvest.
“Above-average temperatures in June and July 2023, combined with a late start of the southwest monsoon in 2023, affected yields,” he said.
Expected summer crop supplies could arrive next month, helping to stabilize prices…
Radhika Rao
Senior Economist, DBS Bank
He said that the rise of tomato mosaic virus in recent years has also caused varying degrees of crop loss, ranging from partial loss to total loss.The disease is characterized by a spotted or mosaic appearance on the leaves and may Resulting in reductions in size, quality and quantity of output.
Tomato prices are up 166 percent compared to July last year, government figures show.Hence, India’s inflation figures are Likely up 4.58% Food prices rose in June from a year earlier as food prices soared, a Reuters poll showed.
DBS senior economist Radhika Rao said prices for tomatoes, onions and potatoes are often “highly volatile” and demand is relatively inelastic because they are staple foods consumed by locals in India.
Still, analysts predict tomato prices could rise when the harvest starts next month.
“Supplies of the summer crop are expected to arrive next month, helping to stabilize prices, pending administrative measures including increased imports,” Rao said.
Likewise, BMI’s Yeo said that the August tomato harvest is coming and that even with lower volumes, the new production could bring some relief to prices.