Tomato prices skyrocket across India, McDonald's drops them from menu

Social media buzz highlights supply-demand gap and restaurant challenges in managing price fluctuations

By  Annesha Barua July 7th 2023 01:28 PM

PTC News Desk: Vegetable prices in India, particularly tomatoes, have experienced a significant surge due to a combination of factors such as extreme heatwaves in key tomato-growing regions and heavy rainfall that disrupted supply chains. As a result, McDonald's restaurants in Delhi have reportedly announced that they can no longer afford to include tomatoes in their food products.

This development has sparked discussions on social media platforms, with users highlighting the supply-demand gap and the challenges faced by restaurants in managing price fluctuations. This article delves into the details of the tomato price surge in different regions of India.

Tomato Prices and Impacted Areas:

The northern regions of India have witnessed a substantial increase in tomato prices. In Gangotri Dham, the rates have reached Rs 250 per kilogram, while in Uttarkashi district, they range from Rs 180 to Rs 200 per kilogram.

Local vegetable sellers have reported a sudden surge in tomato prices, resulting in a decrease in consumer demand. Similar price hikes have been observed in Gangotri and Yamunotri, where tomatoes are being sold at Rs 200 to Rs 250 per kilogram.

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The rising tomato prices have significantly affected consumers in Uttarkashi and other regions. People are reluctant to purchase tomatoes due to the inflated prices. Rakesh, a vegetable seller, mentioned that consumers in Gangotri and Yamunotri are finding it challenging to cope with tomatoes priced at Rs 200 to Rs 250 per kilogram. This sudden increase in tomato prices has caused inconvenience and financial strain on households.

In response to the tomato price surge, the Tamil Nadu government has taken measures to alleviate the burden on consumers. They have initiated the sale of tomatoes at a subsidised rate of Rs 60 per kilogram through ration shops in the state capital, Chennai. This move aims to ensure affordable access to tomatoes for the general public, mitigating the impact of soaring prices.

The steep rise in tomato prices can be attributed to several factors. In Karnataka, particularly in Bengaluru, prices range from Rs 101 to Rs 121 per kilogram. The increase in prices can be traced back to the sudden temperature rise during March and April, which led to pest attacks on tomato crops. Consequently, market rates soared due to the reduced availability of high-quality tomatoes.

India is currently grappling with a surge in tomato prices, primarily due to unfavorable weather conditions, supply chain disruptions, and shorter shelf life. The impact is felt both by consumers and restaurants, with McDonald's in Delhi being forced to remove tomatoes from their food products. To address the issue, governments in states like Tamil Nadu have introduced measures to provide tomatoes at subsidised rates.

As consumers patiently wait for the prices to stabilise, the challenges posed by the tomato price surge highlight the vulnerability of agricultural commodities to various external factors.

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