Price surge: McDonald's removes tomatoes from menu; parties woo voters with subsidy outlets

Hyderabad: Tomato prices have been on the rise across India, and there is no relief in sight. Heavy rains have caused a shortage of tomatoes, which already have a relatively short shelf life.

This has put pressure on prices, and as per the Department of Consumer Affairs, Price Monitoring Division, as on July 7, 2023, the average retail price of tomatoes is Rs 99.9 per kg. The maximum price is even higher, at Rs 180 per kg.

Prasad Mopidevi, a tomato vendor and supplier, told NewsMeter that the tomato market is not likely to see any relief soon. He said that the rains have hit the supply of tomatoes hard and the prices are likely to remain the same for two more weeks, after which they are expected to drop as the markets in Chhattisgarh and other states may get back on track.

Mopidevi said most of the tomatoes come from Madanapalle and Anantapur, considered Asia’s largest tomato-growing belt. The A Grade quality is exported to other states for Rs 2,800 per 18 kg box, while the B Grade is priced at Rs 2,300 and the C Grade is at Rs 1,800. A video (see below) from the Madanapalle market shows an A Grade tomato box of 25 kg being auctioned for Rs 2,590.

McDonald’s drops tomatoes

While the steep rise in tomato prices has as a shock to vendors and middle-class families, who are already struggling with the rising cost of fuel and oil commodities, even major food outlets are not immune to it. McDonald’s franchises in India have announced that they will be serving items without tomatoes due to its shortage.

Street vendors and ketchup units

Street vendors and ketchup manufacturing units are also feeling the pinch of the rising tomato prices. Food vendors from Hyderabad, who did not want to be named, told NewsMeter that they are finding it hard to adjust to the changing ecosystem. They said that they are forced to use ‘jugad’ to balance the taste of their food items, even when the prices of onions, lemons, and tomatoes are fluctuating. For example, if they used to use 5 kg of onions in a dish, they are now using only 2 kg and compensating by using other ingredients in combination.

A ketchup manufacturing unit from Vijayawada told NewsMeter that all players in the field buy tomatoes in advance, convert them into a paste, and store it. The paste is then processed according to the demand and special orders. In this case, we survive through the price hike, which typically does not last more than two months. After that, prices will drop and we will buy again, and the cycle continues.

Political spice

Political parties have also jumped into the fray, distributing tomatoes at subsidised prices in an attempt to woo voters. In Andhra’s Vijayawada, the Telugu Desam Party (TDP) distributed tomatoes at Rs 30 per kg, attracting a large crowd of people who were eager to buy tomatoes at a lower price.

Tomatoes at subsidy prices in Andhra Rythu Bazaars

In response to the soaring prices, the agriculture marketing department of Andhra Pradesh is selling tomatoes at Rs 50 per kg at 103 Rythu Bazaars across the state, which witnessed long queues throughout the day. Recognising the impact of rising tomato prices on households, the government has procured approximately 100 tonnes of tomatoes to date.

These tomatoes have been made available at various Rythu Bazaars, ensuring that consumers have access to this essential ingredient at subsidised prices.

Inputs from Sri Lakshmi Muttevi