From Kitchen Staple to an Item of Luxury: Unveiling Tomato’s Price Surge Journey
Burning a hole in pockets across all the states of India, Tomato prices suddenly surged sky-high making it the Internet’s most trending topic of discussion. A common ingredient in Indian households and a day-to-day used vegetable price has touched a mark of ₹105/kg on the 10th of July as the average daily price.
Why has the price surged?
Heavy rains in some growing areas and hotter-than-normal temperatures last month hit the output of the crop, causing a fivefold increase in prices this year. Tomatoes usually become expensive in the lean production months of June and July, but the impact this year has been exaggerated.
The intense heat has devastated tomato crops and inflicted significant damage on agriculture. Additionally, the cyclone-induced rains in Gujarat have further wreaked havoc on tomato cultivation. Recent heavy rainfall in several areas of Rajasthan has also contributed to the destruction of tomato crops. As a result, the retail market has witnessed a staggering increase in tomato prices.
With the inflated prices, funny memes have been doing rounds on social media. A parody song highlighting the issue has taken the internet by storm.
What’s the effect of price surge?
Not just the common man, but significant restaurant chains have also eliminated tomatoes from the menu. Recently, McDonald’s and Burger King have also stopped the use of tomatoes in their products in some of their outlets. However, the reason for this is not the inflation of tomatoes, but the non-availability of good quality tomatoes. It has been clarified on behalf of McDonald’s that the decision to remove tomatoes from the menu has been taken to maintain the highest standards of safety and maintain the superior quality of food.
Reasons for tomato price surge:
Crop Damage:
Heavy rainfall during the monsoon can lead to water logging and flooding, damaging crops and making them unfit for consumption or reducing their yield. This limited supply of vegetables leads to an increase in prices. Due to rain, significant disruption in the supply of tomatoes was also reported in Karnataka’s tomato-growing districts of Kolar, Chikkaballapur, Ramanagara, Chitradurga, and Bengaluru Rural, reports claimed. Besides, the tomato produce in the farmlands of Kolar is being faced with attacks from the deadly whitefly — or the “virus” as the farmers call it
Disruption in Supply Chain:
Monsoon rains can cause transportation and logistical challenges, making it difficult to transport vegetables from farms to markets. Roads may become impassable, and the overall movement of goods may be hindered. This disruption in the supply chain can reduce the availability of vegetables, causing their prices to rise.
Increased Demand:
During the monsoon season, there is often increased demand for certain vegetables essential for monsoon-specific dishes or preferred during rainy weather. This higher demand can lead to price inflation as the available supply may not be sufficient to meet the increased consumption.
Dependency on Specific Regions:
Some regions heavily rely on specific areas for the supply of certain vegetables. If those areas are adversely affected by the monsoon, such as experiencing crop damage or transportation issues, it can lead to a shortage in the market and subsequently higher prices.
Post-Harvest Losses:
Excessive moisture during the monsoon season can lead to post-harvest losses as vegetables may spoil more quickly. This can further reduce the available supply and contribute to price hikes.
Experts Speak
Well, as per experts, prices will come down only when the Kharif (Kharif crops, also known as monsoon crops or autumn crops, are domesticated plants that are cultivated and harvested in India, Pakistan and Bangladesh during the Indian subcontinent’s monsoon season, which lasts from June to November depending on the area) tomato is pushed into the market, of which the transplantation has begun after the arrival of monsoon. The new crop supply will only be made into the market post mid of August. The prices are expected to go down only after the fresh supply is introduced.
With the possibility of prices seeing a surge in the upcoming days and initiatives by the government to tackle the scenario, the question is,
“Daily Average Retail Price of Tomato to be ₹130.0/Kg. or more by July 30?”
🔵 Reasons for Yes:
- The new crop supply is yet to hit the market in the mid-August thus retaining the chances of lowering the cost.
- The current supply is half of the requirement in the market and cannot be normalised till fresh supplies are bought in.
🔴 Reasons for No:
- The Consumer Affairs Ministry is likely to launch a Tomato Grand Challenge, inviting innovative ideas for improving the commodity’s production, processing and storage.
- Few state governments like Tamil Nadu, the government has taken the initiative to sell tomatoes at low cost in Government-run Fresh Farm Outlets (FFOs)
