One in two Indian households paid Rs 75+ per kg for tomatoes: Survey

New Delhi: One in two Indian households have been paying Rs 75+ per kg for tomatoes, Rs 50+ per kg for onions, and Rs 40+ per kg for potatoes in the last few months, a new survey has revealed.

Vegetable prices have spiked in most cities due to disruption in supplies and damage to several crops. People have started looking for sources to buy vegetables for lower prices.

While the summer monsoon is over, adequate supplies of many crops like onion, tomato, and green leafy vegetables are not arriving in the wholesale markets leading to higher-than-normal prices in the retail market, such that the central government through state-owned organizations are providing subsidized onions in cities like Delhi.

The price impact of disruption in the supply of vegetables varies a lot between markets as production is highly localized and fragmented.

As per Crisil's report, annual retail inflation, based on the All-India Consumer Price Index (CPI), rose to 5.49% in September, a nine-month high, due to higher food prices. This is the highest retail inflation rate since December 2023, when it was 5.69%. It was 3.65% in August. Food inflation, which makes up half of the consumer price index (CPI) basket, rose to 9.24% annually compared to a 5.66% rise in August. It stood at 5.42% in July, 9.36% in June, 8.69% in May, and 8.70% in April, according to the Ministry of Statistics and Program Implementation (MoSPI).

Surge in Vegetarian Thali:

The cost of a home-cooked vegetarian thali surged 11% year-on-year (y-o-y) in September, driven by rising vegetable prices, rating agency Crisil Ltd said in a report. It states that the rise in the vegetarian meal cost can be attributed to sharp increases in the prices of key vegetables, including onion, potato, and tomato, which account for around 37% of the cost.

"Vegetable prices displayed mixed trends in September. Onion prices surged by 53%, potatoes by 50%, and tomatoes by 18% on-year due to lower onion and potato arrivals and heavy rainfall impacting the tomato output in Andhra Pradesh and Maharashtra,” the Crisil report stated.

A survey by LocalCircles found that 1 in 2 Indian households can be attributed to sharp increases in the prices of key vegetables, including onion, potato, and tomato, which account for around 37% of the cost.

Which vegetable did the households pay more for?

Out of 15,260 consumers who responded to the question 56% stated that they bought tomatoes for Rs 75 or more, potatoes for Rs 40 or more, and onion for Rs 50 or more. About 29% stated that they bought tomatoes for Rs 50- 75, potatoes for Rs 30-40, and onions for Rs 40- 50.

Reduced vegetable usage:

29% of Indian households surveyed say they have reduced the consumption of essential and green vegetables to cope with the price rise in the last few months

Forced by budgetary concerns, some households stop buying or cut down on quantities as prices of essentials rise. In the case of potato, tomato, onion, and other vegetables this may be a difficult choice if they are intrinsic to the family diet.

Out of 14,619 consumers who responded to the question 29% have reduced consumption somewhat to stay within budget, 42% have kept consumption the same and paid more, while 29% have kept consumption the same but buying from sources that sell at lower prices.